SCASPA showing steady improvement in financial performance

Basseterre, St. Kitts – November 17, 2011 (SCASPA) “With just over one month to go in its financial year, SCASPA is on track to turn in an even more significantly improved financial performance for 2011,” commented SCASPA’s CEO, Mr. Terrence Crossman. In reviewing the previous two years’ performance, the CEO noted that in 2010, SCASPA incurred a loss of $17.6 million which includes the full separation costs of $10.9 million as recorded in the Income Statement.

The real operating loss for 2010, therefore, was $6.7 million. While this amount ($6.7 million) is higher than the 2009 loss of $5.6 million, the 2009 loss was reduced by a $5.8 million credit adjustment for over-billing of electricity and water charges for years prior to 2009. If this is factored out, the operating loss for 2009 would have been $11.5 million.

Therefore, a comparison of the adjusted results for 2009 and 2010 indicates a significant improvement in operating performance, with Operating losses being reduced by $4.9 million.

The transformation of SCASPA into a sustainable entity after a long trend of losses began in November 2010 when SCASPA recorded its first profit two months after the staff restructuring exercise. This rationalization of staff will result in annualized savings for 2011 of approximately $5.2 million. Other major cost cutting measures implemented include:

(i) Re-negotiation of insurance premiums in 2010 resulting in annual savings of approx. $1.0 million;
(ii) Debt restructuring programme in May 2011 with total savings for 2011 of approximately $2.7 million; and
(iii) Outsourcing of non-core functions, including Airport cleaning and Port grounds maintenance creating savings of over $500,000 annually.

SCASPA has made a remarkable turnaround in just one year, and the outlook for the future is positive.