Polaris Holding Company Reports $1.81M Loss
In a filing with the Bermuda Stock Exchange, Polaris Holding Company Limited today [Oct 31] released the Company’s audited financial results for the year ending 31 March, 2014; reporting a $1.81 million loss.
The filing stated: ”On October 31, 2014 Polaris Holding Company Limited, parent to Stevedoring Services Limited reported its financial results for the year ended March 31, 2014. While the company reported a large loss, Chairman Cheryl Hayward-Chew expressed her confidence in the Company.
“As reported to the shareholders last year, Fiscal 2014 was predicted to be and indeed was a transformative year for Polaris and its subsidiary Stevedoring Services. We restructured the Company from the inside out to reach our goal of ending the financial year in a solid position – the foundation on which to build the future of Polaris.”
“Ms. Hayward-Chew became Chair of the prominent stevedoring company in June 2013 as part of a bigger reorganization which culminated on January 1, 2014 with the hire of Chief Executive Officer Warren Jones. Mr. Jones, former Permanent Secretary for Education left the civil service with glowing accolades and a record for managing change during a 13 year career.
“At Polaris and Stevedoring Services, he is responsible for overseeing day to day operations and was put squarely in the middle of another challenge.
“Warren Jones, “I started with the Company three months prior to year end and have been following in the Board’s stride. We have a new management team in place and we are working well together; relations with the union have never been better. We are evaluating costs, revamping systems, and we are in a very positive position going forward.”
“For the year ended March 31, 2014 we took a big hit as a result of legacy issues, but I am not here to dwell on the past, my focus is on the future and in making Stevedoring Services and Polaris a prosperous and efficient company.”
“Polaris Holding Company Ltd. reported a [$1.81] million loss for the year ended March 31, 2014, driven in large measure by a $ 1 million write down in its real estate property.
“Linda Amaral, the Company’s newly appointed financial comptroller noted “At the start of 2011, with accounting rules having changed, companies were allowed to write the value of their real property up to ‘fair market value’. I think Polaris like a lot of companies, did not anticipate the dramatic softening of Bermuda’s economy. Real estate values are not what they were a few years ago and Polaris is taking the hit for that now.”
“In addition to its real estate write off, the Company incurred a variety of one-off costs and legacy charges reshaping the business model, restructuring operations and realigning its balance sheet. A write down in its inventory gave rise to a $373K inventory charge and a prior period adjustment.
“In August 2013 the Company resolved its outstanding collective bargaining agreement covering the year’s 2011 to 2013. The agreement’s resolution gave rise to un-accrued back-pay charge in Polaris’s March 31, 2014 financials.
“In June 2014, the Company negotiated a new agreement with the Bermuda Industrial Union. The positive nature of those negotiations and the transparency on both sides represents the beginning of a new relationship between management and its unionized staff.
“Management’s focus for the present and immediate future is to continue to improve Stevedoring Services, the flagship Company of Polaris, and to create a reputation for reliable, efficient and consistent service. In this regard, in addition to its new management structure, its improved relationship with the Bermuda Industrial Union, and its new Collective Bargaining Agreement.
Mr. Jones outlined other progressive changes for the stalwart company.
• Key stakeholders including the Government, Chairmen of the three freight lines, Polaris Board members and key importers have toured dock operations at Stevedoring Services. The intent of these visits is to build relationships and give key stakeholders a better understanding of the day-to-day operations.
• A formal training program was instituted throughout Stevedoring Services including deck-men, foremen, crane operators, top loader drivers, terminal operators and superintendents. This has and will create necessary back-up in key positions and ensure consistency in ship operations.
• The relationship between Stevedoring Services and the three Shipping Lines has improved significantly. Quarterly meetings have been established with Agents of the three Lines to discuss matters of mutual importance and when necessary, to speak as one voice for the industry.
• A proposal has been submitted to the Corporation of Hamilton and the Ports Authority seeking new rates for 2015 and 2016. If approved, implementation is planned for January 2015. This is a key ingredient in bringing Stevedoring in line with the costs of doing business.
With the restructuring completed and the new CEO and team established at the helm, the Polaris Board of Directors is optimistic about the Company and is forecasting a flat but steady 2015 with a more robust fiscal 2016.
