TELLING
Al Edwards, Financial Editor
AFTER FIVE years at the helm, chief executive officer of the Carreras Group Mr. William Telling has announced his retirement effective February 1, 2005.
Mr. Telling's executive responsibilities will be assumed by Mr. Micheal Bernard who is currently a director of the Group and serves as the general manager of the Tobacco Division and will become the managing director of Carreras Group Limited.
Carreras' parent British American Tobacco (BAT) has a mandatory age retirement policy and in compliance with this, Mr. Telling will be stepping down. He has been with BAT for some thirty years.
He had intended retiring two years ago but felt that he should continue with the restructuring exercise he began and see the Group return to core business.
Carreras now focuses on hospitality and tobacco products.
CARRERAS OFFER
In January of this year, Carreras Group assumed the manufacture and distribution of cigarettes and tobacco products from the Cigarette Company of Jamaica Limited.
Under Mr. Telling's watch Carreras took over the running and management of the San Soucci hotel from John Issa's SuperClubs. The hotel is yet to make a significant turnaround under its new management but Carreras is making efforts to attract more European and Japanese visitors.
Speaking with Wednesday Gleaner earlier this year Mr. Telling said: "We have good bookings for the fall and until Hurricane Ivan we were looking in good shape. We are thankful that the hotel did not sustain any serious damage during the hurricane and we are now focused upon attracting even more visitors."
For the six months to September 30, 2004 unaudited results reveal a somewhat lack lustre financial performance. There has been a 10 per cent increase in its gross operating revenue which rose to $3 billion, up from $2.7 billion. After accounting for minority interests, the group earned net profits of $1.2 billion, a 24 per cent dip from the $1.6 billion posted last year. The Group has been plagued by declining investment income and increasing advertising and administrative costs.
To compound matters further there is no resolution of the income tax assessment made by the Commissioner for Taxpayer Audit and Assessment in respect of the years 1997 to 2002. The sum in question totals $5.7 billion and breaks down to $2.1 billion in income taxes and the remainder in penalties.
Speaking on this matter earlier this year, Mr. Telling said: "We haven't changed our methods in 31 years and have always indicated our outstanding loans and liabilities. We are aware that the entire local business community is looking to this ruling and we will be fighting it all the way."
But yesterday there was some good news for Carerras shareholders when the Board of Directors approved the payment of a Special Capital Cash Distribution of $9.80 per stock unit to be paid on 14 January 2005, to stockholders as shown by the Register of members on December 17, 2004.
The distribution is payable out of proceeds received from the liquidation of a number of the company's subsidiaries.
In accordance with the First Schedule, Part 1, Section 3 of the Transfer Tax Act an application is to be made to the Commissioner of Inland Revenue for relief from payment of Transfer Tax on this capital distribution.
