Basseterre, St. Kitts, April 30, 2018:- The recent unprecedented surge in Small to Medium Sized Business development as well as the market saturation of certain sectors mainly the Automotive sector, is beginning to have a negative impact on the bottom line of the traditional large corporations on St.Kitts-Nevis.
This was evident with the recent release of the Annual Report of the over 125 year Old Horsford’s Group of Companies. After record profits in prior years 2016 and 2015 the company registered a decline in overall profits in 2017.
Company chairman, W. Anthony Kelsick in his report to shareholders said the overall result was less than the record year of 2016 which registered declines in Income before and after taxation, basic earnings per share, turnover or group sales and also a decline in all segments of its operations.
S.L. Horsford also reported declines in car sales, the durable goods and consumable goods sectors and in the joint venture company, St. Kitts Masonry Products.
According to the report after record years in 2015 and 2016 the Automitve Sector declined by some 20%. The Chairman’s report stated ” The decline in profit was mainly due to increasing competition and a saturation of vehicles in the market. This decline is typical of the automotive market, which is cyclical in nature.”
The Horsford’s Group also recorded declines in durable goods sector and consumable good sector. This was no doubt due to the record emergence of Small to Medium-sized Businesses and the Online Business Enterprises such as Amazon , like the rest of the world, is beginning to negatively impact large businesses.
The Inland Revenue recorded consecutive years of record New Business Licenses or Registration. The introduction of the Fresh Start Small and Medium Sized Loans Programme has benefitted near 600 new and small to medium sized businesses. This has resulted in a much wider retail market for a largely stable consumer market.
The Chairman reported that the St.Kitts-Nevis economy is performing satisfactorily despite the companies slight decline in overal profits.