Ongoing upgrading work at Demico House, the flagship trading establishment of Banks DIH Ltd, is already contributing “positively” to the finances of the company, Board Chairman Clifford Reis said in his assessment of the company’s performance published last week as part of its half-yearly financial statement.
Widely regarded as perhaps the most strategically located business premises in downtown Georgetown, Demico serves patrons travelling to the city from across the country. Reis said in his report that the profitability of Demico House has been further enhanced by the opening of a new Sports Bar.
The chairman’s report highlights several other upgrades in the company’s operations that have either been ongoing or were initiated over the last six months though his presentation pointed to challenges that continued to be a drain on the company’s resources.
Reis disclosed that over the past six months the company continued its “information and technology upgrade,” a process which he said was designed to enable “a more effective transmission of data and use of plant and equipment technology to support the sales and marketing strategies.”
In the operational sphere Reis said that the company also secured financial returns from its investment in new soft drink lines as well as machinery upgrades.
Additionally, he alluded to additional benefits to be accrued from the automation of the company’s Brewhouse which also commenced over the last six-month period. Reis said that once the Brewhouse upgrade was completed the brewery would be better positioned to maximise its contribution to company finances.
In his report Reis said that the company’s efforts to improve efficiency and increase its earnings over the reporting period continued to be challenged by increasing prices for oil and petroleum products on the world market, which he said continued to exert “an onerous burden” on the company’s financial resources. Reis said that while there was no “meaningful remedy” for these conditions, “our focus continues to be the prudent management of our resources and the reduction of expenses.”
High transportation costs associated with fuel prices, notwithstanding, Reis said, Banks DIH Ltd persisted with its “fleet replacement programme” over the past six months, a decision which he said has had “a positive impact” on the company’s sales and distribution effort. He said that an additional number of vehicles will be added during the second half of the financial year.
