KINGSTON Wharves Group recorded $56.1 million in fourth-quarter net profit, which was a reversal of the $29.5-million loss recorded in the prior year’s quarter due to declining finance costs.

The group’s finance costs were $53.7 million in the fourth quarter versus $270.6 million in the prior year’s quarter, which augured well for the group’s “materially unchanged” revenues at $692.5 million compared with $687.6 million in the prior year’s quarter. At the same time, tonnage handled at the wharves one to nine declined to some 359,650 tonnes versus 396,360 a year prior — reflecting the decline in macroeconomic activity.

For the group’s entire financial year ending December 2009, revenues declined to $2.57 billion versus $2.77 billion a year prior, but the group was most affected by a 265 per cent jump in taxation to $188.3 million from $51.5 million a year prior. This resulted in $10.4 million in after-tax profit versus $165.9 million a year prior. Also, the annual tonnage handled declined to 1.3 million versus 1.8 million a year prior, reflecting decreased economic activity. The group has a relatively upbeat outlook despite the decline in activity, due to increased efficiency and marketing.

“During the quarter, the company’s marketing efforts resulted in the company attracting new business that will commence during the first quarter of 2010. This arrangement is expected to positively impact the company’s future profitability,” stated the financial notes, endorsed by chairman Grantley Stephenson, and added that this challenging environment will continue for the medium term.

During 2009, the group’s subsidiary Harbour Cold Stores Limited (HCS) commenced its facility enhancement drive which increased control over the chain. “This activity was necessary to ensure that HCS will be better able to service a wider customer base,” stated Stephenson.

During the fourth quarter, HCS’s revenue increased 10 per cent from $66.6 million in 2008 to $73.2 million in 2009 which allowed operating profits to increase to $38.4 million compared to $10.3 million during 2008.

“The improvement in operating profit can be attributed to higher level of sales and increase in interest income,” stated Stephenson.

The subsidary, Security Administrators Limited (SAL), recorded a 20 per cent rise in quarterly revenue to $104.6 million compared with $86.8 million for the corresponding period in 2008, which resulted in operating profit of $15 million for the quarter compared to a loss of $2.9 million a year prior.

“The reasons for the improved results in 2009 were the increased number of clients serviced,” stated Stephenson.