THE GROUP

Kingston Wharves group’s net profit attributable to equity stockholders for the fourth quarter of 2009 was $52.79 million compared to a loss of $28.13 million representing an increase of $80.92 million when compared to the corresponding period in 2008. This resulted in earnings per stock unit for the fourth quarter of 2009 being 4.92 cents compared to a loss of 2.62 per unit in 2008.

The Group’s revenue for the fourth quarter was materially unchanged from the corresponding quarter of 2008, $692.51 million compared to $687.61. This represents an increase of $4.90 million or less than one percent change in group revenue. Profit before tax for the quarter for the Group was $104.68 million, compared to a loss of $84.83 for the corresponding period in 2008.

KINGSTON WHARVES LIMITED

During the quarter, the company’s marketing efforts resulted in the company attracting new business that will commence during the first quarter of 2010. This arrangement is expected to positively impact the company’s future profitability.

Kingston Wharves Limited (KWL) revenue for the quarter was $525.40 million (2008: $556.43), a decrease of $31.03 million or 5.58% when compared to the corresponding year. The company’s operating profit for the period fell from $188.92 million in 2008 to $130.06 million in 2009 a reduction of $58.86 million or 31.15%.

The company’s performance for the quarter was impacted by the reduction in the domestic tonnage handled - down from 396.36 thousand tons in 2008 to 359.65 thousand tons, the IAS 19 pension and other benefits adjustment necessary to as a result of the reduction in the surplus, reduction in interest income, and maintenance expenses.

HARBOUR COLD STORES LIMITED

During 2009, the Harbour Cold Stores Limited (HCS) commenced its facility enhancement to ensure that it has greater control over the cold chain. This activity was necessary to ensure that HCS will be better able to service a wider customer base. During the fourth quarter, HCS revenue increased from $66.56 million in 2008 to $73.24 million in 2009, i.e. $6.68 million or 10.04% when compared to the corresponding period in 2008. Operating profits for the quarter were $38.44 million compared to $10.29 million achieved for the corresponding quarter of 2008. The improvement in operating profit can be attributed to higher level of sales and increase in interest income.

SECURITY ADMINISTRATORS LIMITED

Security Administrators Limited (SAL) revenue for the quarter ended December 2009 was $104.62 million compared to $86.84 million for the corresponding period in 2008. Operating profit for the quarter was $15.01 million compared to a loss of $2.93 million for the corresponding quarter in 2008. The reasons for the improved results in 2009 were the increased number of clients serviced.

OUTLOOK

We are of the opinion that the challenging environment that the group is currently operating in will continue for the next couple of years. In order to ensure that the group is able to effectively navigate the challenges, we continue to focus on looking for new opportunities while streamlining business processes. In 2009, our efforts at reengineering our business processes were recognized by the Caribbean Shipping Association who awarded Kingston Wharves Limited the Port Efficiency Award. We thank all of our valuable stakeholders who have stood by us strive to maximize our opportunities during these turbulent times and anticipate your continues support in 2010.