Despite a tough climate, Trinidadian conglomerate Neal and Massy fared better in Jamaica in 2010 than the year before.

What’s more, the company has identified growth prospects and has set a “growth madate” for its operations here as well as other areas in which it operates.

According to the CEO’s report to shareholders, which was filed with the Trinidad and Tobago Stock Exchange (TTSE) last week, Neal and Massy “is exploring opportunities locally and internationally”, even though only some will come to fruition in the near term.

“In addition, we have initiated an international expansion effort at the corporate centre and will be visiting Latin and Central

American countries in 2011 to explore and develop investment opportunities,” said the CEO’s report.

At the same time, Neal and Massy said its Jamaican subsidiaries, which include Gas Products Ltd, HD Hopwood, illuminat Jamaica, Magna Rewards, of which it owns 51.3 per cent, “have continued to generate good profits” despite economic conditions in Jamaica being “particularly difficult”.

In fact, “increased profits generated in higher tax jurisdictions of Guyana and Jamaica accounted for the increase in the taxation”, according to the report.

Income tax charges for Neal and Massy climbed from TT$175.4 million ($2.3 billion) to TT$181.8 million (($2.4 billion), primarily as a result of overseas subsidiaries paying out TT$67.4 million in taxes during the 12 months ended September 30, 2010 compared to TT$46.1 million a year earlier, which suggested a 46 per cent improvement in overall income from outside of Trinidad.

Taxes paid by associated companies also increased from TT$7.5 million ot TT$13.5 million.

neal and Massy also benefit from lower interest costs, which fell from TT$102 million to TT$77 million, primarily because of the reduction in the foreign exchange losses experienced in its US dollar borrowings in Jamaica.

Following an exchange of government domestic debt and the signing of a Stand-By Arrangement with the International Monetary Fund (IMF), the Jamaica dollar appreciated against the US by over four per cent during the June 2010 quarter and has remained stable since.

Those Us dollar loans would have been fully repaid by December 2010, added the CEO’s report.

Neal and Massy’s revenue declined from TT$8.34 billion for the year ended September 30, 2009 to TT$8.26 billion during the review period, when profit fell from TT$483.6 million to TT$306.1 million.

Even while net profits for its automotive and industrial equipment and energy and industrial gases segments declined, the biggest contributor towards the deterioration of the conglomerate’s bottom line was it hospitality segment, which includes two entities in Barbados and which saw its loss position worsen from TT$19.8 million in 2009 to TT$102.1 million last year.

The food Group, under which HD Hopwood operates, the It and communications division, under which Illuminat Jamaica operates, and the Financial services segement, under which Magna Rewards operates, all saw improvements to net profit.