LIME blames poor state of economy for reduced income

The performance of the company has been reported on, in its 2013 Annual Report, ahead of the Annual General Meeting, the date for which is yet to be announced.

However, according to the General Manager, David Lake, “We cannot lose sight of the fact that, like many other local companies, LIME St. Kitts and Nevis has been significantly impacted by the protracted global economic downturn.”

He added that the “decline in consumer spending during the 2012/13 fiscal year was driven by the introduction of Value Added Tax and increases in the Social Services Levy and electricity tariffs.” Like so many poor and ordinary private consumers of electricity, LIME admitted that it too, (despite it being one of the largest corporations in the country), was adversely impacted by the high electricity charges that they found difficult to sustain.

The income for the company in 2013, fell by just over four million dollars, (EC$4,694,000); from $80,470,000.00 in 2012 to $75,776,000.00, in 2013.

Despite the difficulties presented within the depressed economy, the LIME General Manager explained that they had to invest much effort in honing their skills to operate more efficiently in what he characterized as an “increasingly competitive and challenging market.”

He said that the company turned to internal solutions through a more collaborative effort, to institute cost saving measures. Critical amongst these, said the General Manager, were the initiatives that included renegotiated service contracts, replacement of old high energy efficient inverter type units and the installation of motion sensors for light switches to reduce electricity usage.

Another cost saving measure, related to the outsourcing of Residential Service Delivery in December last year. Lake praised this action as one that delivered much savings, saying, it led to “a significant decrease in operating cost while providing the service levels on a third party contract basis.”

In 2012, LIME raked up an operating cost of $63,181,000.000 but this dropped significantly in 2013, to $49,321,000.00; or a reduction of $13, 860,000.00.

LIME said however that it remains optimistic about a brighter future despite the numerous difficulties. “We shall continue to transform our growth profile, take advantage of high- tech opportunities as they unfurl, while consistently creating customer value,” predicted Lake.

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