By Ashford W. Meikle, Staff Reporter

CHAIRMAN OF the Carreras Group, George Ashenheim, has announced his intention to retire from the helm of the board. "This is the last annual general meeting (AGM) over which I will preside," said Mr. Ashenheim. He was speaking at the group's 42nd AGM held yesterday at the Terra Nova Hotel on Waterloo Road. He did not give a date when his resignation would be effective. Mr. Ashenheim has been associated with the Carreras group for the past 44 years.

The Carreras goup consists of two business segments. The tobacco segment manufactures some of the island's leading brands such as Matterhorn and Craven A. Last year, the group introduced the Kool brand, an international premium menthol cigarette. Carreras' other segment is involved in the hospitality industry through ownership of the Sans Souci Hotel.

NET PROFITS

For its audited financial statement for the year ending March 31, 2004, Carreras returned net profits of $2.8 billion, a 15 per cent decline over 2003 when it posted net profits of $3.3 billion. The group earned revenues of $5.9 billion, which represents a 20 per cent increase over 2003. Last year, Carreras returned revenues of $4.9 billion.

In his address to the audience, Mr. Ashenheim highlighted the restructuring of the group in the past year, which resulted in a return to the group's core business operations, tobacco manufacturing.

Just last week, Carreras sold its Twickenham Insurance Company to Globe Holdings Limited (associated with Globe Insurance) for a little under US$32 million.

Incorporated in the Cayman Islands, Twickenham Insurance provided general insurance services for the Carreras Group. Globe's parent company, Lascelles deMercado, is also the second-largest stockholder in the Carreras Group. Operations at Cigarette Company of Jamaica have been terminated during the past year along with the voluntary liquidation of several subsidiaries. These include Graphic Arts Limited, Jamaica Flexographic Limited, Jamaica Graphic and Printing Supplies Limited and Agricultural Products of Jamaica Limited.

MARKETING STRATEGY

Chief executive officer William Telling said that the group was reviewing the marketing strategy of the Sans Souci Hotel. He said a sales team would be leaving the island next week for Japan to review its strategy in that niche market.

In response to a question from an audience member, Mr. Ashenheim said the sale of the hotel was not ruled out.

The past year has been a litigious one for the group. In addition to legal battles with the Stamp Duty and Transfer Tax Office, an arbitration panel recently ruled that Sans Souci should pay VRL Services US$6 million for terminating the latter's management contract. "We are under negotiations with VRL ­ we are reviewing our options," Mr. Ashenheim said.

Carreras is a 50.4 per cent subsidiary of Rothmans Holdings (CARICOM) Limited, whose parent company is British American Tobacco plc.

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