Our presence in Barbados started with Standard Distributors in a joint venture with Barbados Shipping & Trading in 1959. Later, ANSA McAL opened our first registered office here in 1980. Thirty-one years later, we have had no regrets. Our investment here is stronger than ever. The acquisition of 100 per cent of the AS Bryden Barbados Group by our subsidiary, McEnearney Alstons (Barbados) Ltd, continues to yield opportunities and value beyond our initial expectations. The Brydens Barbados management teams have integrated well and are working closely with their ANSA McAL partners to leverage synergies in the areas of finance and insurance, manufacturing and distribution. We are listed on the Barbados Stock Exchange (BSE). We are one of the leading employers. We contribute approximately Bds$212 million annually in corporate taxes.
We have seen an appreciation of our shares on the BSE which led to our share being voted the top performing share in 2006. We have delivered solid earnings per share growth. While this country, like its Caribbean partners, is navigating macroeconomic challenges, the ANSA McAL Group's commitment to Barbados remains as strong as ever. We are not daunted by the current downturn. We will invest further in our businesses in Barbados and elsewhere. We will invest in, and develop our employees in Barbados and across the Caribbean. We are seeking to deepen and build our stakeholder relationships and are committed to working with the government of Barbados to build Barbados. This is our philosophy in Barbados, and in every country in which we operate.
As indicated in our parent board company report for 2009, our group continues to navigate the current global and regional economic crisis that spans all markets: the United Kingdom, Eurozone, Asia and Latin America. Fortunately, we were reasonably prepared for it. You will recall in the last five years, we have invested Bds$500 million in capital projects across the Caribbean to accelerate organic growth, and to provide product and services which are "best of class to customers" and to enable us to compete and grow, hemispherically and globally.
Poised for expansion
Today, our group is generating approximately Bds$450 million of free cash. Our group long-term debt gearing ratio is 24 per cent. This compares very favourably to the 53 per cent and 59 per cent level of gearing of Neal & Massy and GraceKennedy, respectively. The group is delivering more than satisfactory organic-led growth and is well poised for future acquisition-led growth. Despite the very tough economic conditions, our 2009 results were a 2� improvement on our 2008 results. More recently, our first quarter 2010 results reveal a ten per cent growth in profit before tax to $143 million and a ten per cent earnings per share (EPS) growth to 68�. Total comprehensive income has grown from $133 million to $168 million–a robust 29 per cent over the comparative period last year.
We are optimistic about the future and our ability to deliver V10. V10, or Beyond Blue, was a public pledge in 2006 by our chairman to shareholders to deliver an EPS of $5. No doubt, the recent deep contractionary economic environment may delay it temporarily...but it will be delivered. You will agree that developing a Caribbean brand is not merely an issue of profitability and EPS.�A strong brand must be developed�in the�context�of�a�strong Caribbean. Philosophically, developing�a�Caribbean�brand�must�be�predicated on mutual respect and positively�impacting� our�communities.�It is about engaging our employees, stakeholders and building a richer community.�Business cannot replace government, but can and must support key social initiatives.
Laureate programme
It is this recognition of responsibility which led to the�introduction of the�Anthony N Sabga Caribbean Awards for Excellence�Programme�in 2005.�The programme's first�chairman was� Sir Ellis Clarke, the first President of T&T. He was succeeded by�Michael Mansoor, chairman of FirstCaribbean International Bank. Caribbean Awards for Excellence are conferred upon outstanding citizens of the English-speaking Caribbean in the areas of�arts and letters, public and civic contributions and science and technology. Each laureate receives a citation, a gold medal and $500,000.�From inception, ten laureates have been recognised in three biennial presentation ceremonies in 2006, 2008, and 2010 in Trinidad.�
I understand that Dr Anthony N Sabga intends the awards to be conferred yearly from 2010. Many of the laureates have since�been�conferred�with�other�regional and international awards.
One of these laureates was from Barbados.�He is James Husbands, entrepreneur in the field of solar energy. May I also recognise the excellent work of�the�Barbados Country�Nominating�Committee, chaired by Dr Basil Springer, and comprising�Peter Boos, Dr Marcia Burrowes, Senator Dr Frances Louise Chandler, Roberta Clarke, Vivian Anne Gittens, and Senator Branford Taitt. Another�Barbadian also serves�on our regional eminent persons panel: Justice Christopher Blackman.
Building youth talent
No sustainable Caribbean brand can be built without a focus on people. We are still losing too many youths to drugs, criminal activities and violence. In T&T, 2,434 persons have died by violence in the last four years, a significant percentage is youth less than 29 years. We must protect our youth. We must also ensure that talented youth studying abroad return to the Caribbean to help build the region. There is a unique opportunity now, given the high unemployment levels internationally, to attract overseas students and professionals back to the region.
Post-2008 challenges
The post-2008 period had been extremely challenging for the region. Last week's four-year euro low at 1.21 merely underscores the difficulties. Whether it is the fall in commodity prices and remittance income in Jamaica, declining tourism in Barbados and the Organisation of Eastern Caribbean States, reduced foreign direct investment and energy prices in T&T, the fact is every economic indicator has suffered. Today, debt to gross domestic product levels hover close to 100 per cent, and, in other cases, like Grenada and Jamaica, they exceed 150 per cent. In too many cases, this is accompanied by high and rising unemployment. A weak pound and euro will make tourism travel to the region more costly delaying an early recovery. In T&T, reduced oil production, a weak exploration outlook and relatively low energy prices will require a different corporate and government mindset, given the markedly different macroeconomic look.
�2 Continued next week