St Kitts-Nevis: TDC reports EC$12.9 million in pre-tax profit

The St Kitts Nevis Anguilla Trading and Development Company Limited has reported a strong result for the 2016/17 financial year, making a pre-tax profit of EC12.9 million.

The previous year the TDC group of companies made $5.4 million.

But despite this good news, several areas saw a mixed performance.

Ahead of the firm’s annual general meeting on 31 July, the annual report showed declining profits in Home and Building Depots (St Kitts and Nevis), TDC Rentals Limited and TDC Rentals (Nevis) Limited, TDC Insurance Company Limited, formerly SNIC, TDC Tours Ltd and St Kitts Masonry Products.

The Drinks Depot registered disappointing numbers, while losses were recorded in the Shipping Departments in St Kitts and Nevis.

The Automobile Divisions (St Kitts and Nevis), City Drug Store (Nevis) Limited and TDC Business Centre (St Kitts) saw a good performance, as did FINCO, TDC Airline Services Ltd and TDC Services (Nevis) Ltd.

Falling property demand

TDC also reported that the importation of building materials, a gauge of activity in the construction sector, declined.

“The construction sector was negatively impacted by events in the citizenship by investment programme and the resulting down turn in demand for properties to serve it,” the board of directors said.

“Public sector capital investment declined in 2016. Correspondingly, the profit for the Home and Buildings in Nevis and St Kitts declined.”

The TDC directors added that St Kitts Masonry Products Ltd reported “a significant decline in profit due to a reduction in the demand for blocks and ready mix concrete as the construction industry contracted during the year.”

Tourism decline

The profit for TDC Tours Ltd “declined due to reductions in hotel guests transported on behalf of Four Seasons. The cruise visitors who took tours offered by the company also declined,” according to the annual report

TDC Airline Services increased its profit for the year as a result of a 20% increase in handling flights, while TDC Airline  Services (Nevis) Ltd profit was mainly due to an increase in handling revenue.

“LIAT resumed flights to Nevis in January 2016. However the service was discontinued in November 2016. The increased flights from Winair positively impacted the handling revenue of the company,” said the report.