BREXIT HAS HIT Cave Shepherd & Company Limited’s bottom line.
Chairman Sir Geoffrey Cave and chief executive officer John Williams reporting on the company’s consolidated statement of income for the first quarter, said Cave Shepherd “recorded a profit attributable to equity holders of $1.5 million for the three month period ended March 31, 2017 compared to $2.1 million profit for the same period in the prior year”.
They said the decline was associated mainly with the United Kingdom’s decision to exit the European Union and its related impact on Cave Shepherd associated company Duty Free Caribbean.
“The decline in the profit is primarily attributable to reduced sales to British visitors at our associated company, Duty Free Caribbean, as a result in the fall in the value of the pound sterling following the Brexit referendum,” they explained.
However, they also reported that “this decline in earnings was partially offset by an improved performance in our investment portfolio compared to the prior period”.
“We are pleased to report that our Cave Shepherd Visa Card transaction volumes have exceeded expectations for the first quarter of the year,” Sir Geoffrey and Williams added.
In terms of the economic outlook, they said “Caribbean countries, including Barbados are facing challenging economic times and this is reflected in our retail operations results for the period to date”.
Despite this, they said the group “is well positioned to navigate this period of uncertainty”.
Cave Shepherd’s recent profit equated to eight cents per share compared to 11 cents per share in the same period last year.
Cave Shepherd has been looking for new ways to maximise its sales in the face of difficult economic times and challenges such as Brexit.
The company recently announced the launch of its new online retail platform. It said its decision to offer about 500 items for sale online was “an indication of the importance of evolving traditional business alongside the convenience expected in the digital age”.
Duty Free Caribbean Holdings chief operating officer David Pietrzak, said: “We recognise our customers with hectic schedules are simply unable to get to our stores due to time constraints but still have basic needs they need to fulfill. We are always ready and prepared to meet the requests of our customers and continue to make shopping easy and convenient for them.” (SC)
