NEARLY four months after it acquired an associate stake in Caribbean Producers (Jamaica) Limited (CPJ), A.S. Bryden and Sons Holdings Limited (ASBH) will be making additional changes to CPJ (St Lucia) Limited’s management in its current integration and streamlining process.

Richard Du Boulay, who has served as CPJ (St Lucia’s) general manager since December 2016, will transition to the new role as head of business development on November 1. Gerard Conyers, who is the managing director of Micon Marketing Limited, will be the interim general manager for the next six months until a suitable replacement is appointed. Ainsley Alleyne, manager for warehouse operations at A.S. Bryden & Sons (Trinidad) Limited, will be seconded to CPJ (St Lucia) for a six-month assignment focused on streamlining the company’s warehouse and logistics operations.

Adam Conyers will succeed Gerard as the managing director of Micon Marketing. Adam has spent the last 23 years working with Micon Marketing and its related subsidiaries, with his most recent role being the sales director. Also, Scott Fanovich, senior brand manager for Micon Marketing, will be appointed to the role of commercial manager to oversee sales and marketing. These changes come on the heels of the recent promotion of Sheena Constantine to division manager, food and grocery, at A.S. Bryden & Sons (Trinidad) on July 10.

These moves to shake up CPJ (St Lucia) take place after the full-service distribution company with a wholesale fresh market store had a difficult year. CPJ (St Lucia) saw its revenue increase by five per cent to US$26.45 million but saw a swing from a net profit of US$985,467 to a net loss of US$577,949. However, the company had US$3.88 million in capital investments to its operations, which was funded by operating cashflow and debt under-financing activities.

CPJ (St Lucia) began as a joint venture in October 2014 between CPJ and Du Boulay’s Bottling Company in which CPJ owned 51 per cent of the entity. This venture was done at a time when Sandals International invited CPJ to service it in that market. Sandals International is run by its executive chairman, Adam Stewart, who also chairs this publication.

CPJ as a standalone entity reported a two per cent increase in revenue to US$121.79 million, which the company attributed to new product lines and growth in existing sales channels, including e-commerce. However, CPJ’s hospitality segment — which represents three-quarters of its business — grew by five per cent to US$90.89 million while its retail and export businesses both contracted.

With expenses being relatively unchanged year on year, CPJ’s operating profit grew 17 per cent to US$11.05 million. Even with lower finance costs and higher taxes, CPJ was able to grow its net profit 23 per cent to US$6.94 million for the June 2024 financial year (FY). However, CPJ made one-time settlement expenses to certain government agencies last year totalling US$1.589 million. If those expenses are eliminated, CPJ’s normalised net profit for the 2024 FY would have been down four per cent compared to an adjusted US$7.22 million net profit in the prior period.

CPJ’s consolidated asset base was up nine per cent to US$98.39 million, with inventory increasing eight per cent to US$42.15 million and with cash at US$9.92 million. Total liabilities and equity attributable to shareholders was US$59.74 million and US$35.55 million, respectively.

A.S. Bryden acquired 44.89 per cent, or 493,798,863 ordinary shares, on July 9 for $10.50 per share for a transaction value of $5.18 billion (US$32.93 million). Since that acquisition, Nicholas Hospedales was appointed chief executive officer (CEO) of CPJ, with A.S. Byrden CEO Richard Pandohie appointed chairman of the newly constituted board of directors. A.S. Bryden has indicated that it intends to acquire control of CPJ at a later stage, a process which has to go through regulators.

“In light of new investments from A.S. Bryden and appointments at the highest levels of leadership, CPJ will undergo important strategic adjustments — however, we would like to assure stakeholders that these changes will not significantly impact CPJ’s daily operations. Our foundational business model remains sound, and the leadership transitions are designed to enhance our capacity for growth and expansion while maintaining the continuity of our operations,” stated the outlook signed by Pandohie and Hospedales in CPJ’s FY 2024 preamble.

CPJ’s stock price closed Tuesday at $8.94 or 15 per cent below the acquisition price. CPJ was co-founded by Anthony Mark Hart and Thomas “Tom” Tyler in April 1994 with a deep focus in the hospitality sector through wines, meats and other products.

ASBH’s ordinary shares closed Tuesday at $33.80/US$0.2273, which leaves the stock up more than two per cent year-to-date with a market capitalisation of $46.97 billion. ASBH’s shares are yet to be listed on the Trinidad & Tobago Stock Exchange (TTSE), with effectively two months left in 2024. ASBH and CPJ’s quarterly reports are due by November 14, with CPJ’s annual report due today.

ASBH will pay a US$0.015 dividend, totalling US$306,045, to preference shareholders, to be paid on November 12 to owners on record as of November 1. This is the second preference share dividend declared this year, with the company paying out the Trinidad & Tobago dollar (TTD) equivalent of TT$8.32 million in 2023. Keskidee Limited (connected to the Bryden family) owns 9,642,009 preference shares; Ambergate Limited (connected to the Fitzwilliam family) owns 6,016,805 preference shares; Fairchild Limited (connected to the Maingot family) owns 2,773,031 preference shares; and Summit Investments Limited (connected to the three families and other executives) owns 1,970,155 preference shares.

The ASBH class A preference shares (6.00 per cent) have not yet traded since listing in November 2023 and currently remain priced at US$1. This is due to the lock-up period, which lasts from June 2022 to June 2025, and prohibits the owners of those shares from trading those shares. A.S. Bryden can redeem those preference shares in multiples of 50 on the last business day after the 15th anniversary following the issue date. If the preference shares aren’t redeemed at this period, they can be redeemed in each successive three-year period. These preference share terms in terms of time for redemption are similar to that of Productive Business Solutions Limited’s September 2022 perpetually redeemable preference shares offer.