Hi-Lo Food Stores (Jamaica) Limited
launched a new supermarket concept
called “Basix” at Tropical
Plaza, which delivers more attractive
prices while operating at a lower
cost structure. Agro-Grace Limited
is now the number one agricultural
retailer in Jamaica as a result of
its purchase of CASCO in Mandeville.
Between these three companies, the
division now has 25 retail outlets.
Versair In-Flite Services Limited
was adversely affected by the events
of 9/11, but continued to be profitable
by an exemplary display of improving
efficiencies in several areas of
its activities.
The Financial Services Division
had an outstanding year. First Global
Bank Limited, our commercial bank,
continues to perform above expectations
in terms of profits and growth.
First Global Stockbrokers Limited,
which started operations in the
fourth quarter of 2001, gained significant
market share to close at the number
two position at the end of 2002.
Our insurance interests also performed
well with continued growth in both
premiums written and profitability.
Grace, Kennedy Capital Services
Limited launched its first overseas
mutual fund, the Grace, Caribbean
Fixed Income Fund, on 8 October.
It is a US dollar denominated fund
listed on the Cayman Stock Exchange
and has shown pleasing results to
date.
Pre-tax profits in the Financial
Services Division increased from
$386.6 million in 2001 to $683.7
million in 2002, an increase of
$297.1 million or 76.8%.
The overall financial results of
the Maritime Division were satisfactory
despite the legal matters that are
currently being pursued in the courts.
During the course of the year, a
consortium of shareholders in our
publicly traded associated company
Kingston Wharves Limited has been
attempting to take over control
of the company by proposing the
removal of existing directors and
appointment of new directors. An
Extraordinary General Meeting of
Kingston Wharves Limited, which
was called by some of these shareholders
has been postponed until the court
makes its final decision regarding
a suit between Grace, Kennedy &
Company (Shipping) Limited and the
Shipping Association of Jamaica
Property Limited. GraceKennedy’s
board has taken the position that
if a consortium of shareholders
wishes to change control of the
company, then a formal offer ought
to be made to us to purchase our
shares. GraceKennedy has indicated
that it will divest its shares in
Kingston Wharves Limited at an acceptable
price.
Kingston Wharves Limited is proceeding
with its modernization drive although
the court cases have delayed integrating
stevedoring into its menu of services.
The company has purchased a new
Gottwald mobile ship-to-shore crane,
a new container stacker and a suite
of terminal management software.
Additionally, the dredging of the
berths which now allows for more
flexibility when berthing vessels
has been completed. Port Services
Limited has performed exceptionally
well in comparison to the previous
year.
The Information Services Division
continues its positive trend with
increased transaction volumes of
remittances. The division made a
significant investment in expanding
its services globally with the launch
of Caribbean Outpost in New York
as well as researching and introducing
other new services and expanding
its regional networks. We purchased
a 30% shareholding in Acra Financial
Services Inc., a Western Union agent
in Haiti. Bill Express was launched
in Trinidad & Tobago and Guyana.
F/X Trader continues to perform
very well in Trinidad & Tobago.
During the past year the GraceKennedy Group experienced tremendous
innovation reflecting the outpouring
of creativity by our people. Some
examples of these initiatives are:
- Customer service: coaching of
our staff through our in-house
programmes produced improved energy
to satisfy customers.
- Food Trading: Tropical Rhythms
continued its unprecedented growth;
a plethora of new products were
launched with others in the pipeline;
several focus groups inside and
outside of Jamaica were used to
determine unmet needs. Page 3
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