SUNBEACH REPORTS OVERALL SUCCESS (Monday 6 February, 2006 )

THE future of Sunbeach Communications Incorporated (SCI) looks very bullish.

At least this much can be gleaned from Chairman, Mr. Harold Morley in the SCI financial statements for the period ended April, 2005.

Sunbeach has struck a deal with Telcom Holdings Limited out of Trinidad and Tobago, in which THL will be acquiring a majority stake in the Barbadian firm, and injecting cash so as to proceed with a cellular service.

"The Board continues to concentrate on the continued development in the Internet division which at this time remains its core business," said Mr. Morley.

"Once the proposed THL take-over bid proceeds and with commitment and funding, the company should look forward to realising its potential in the larger telecom market, and to delivering Sunbeach's promised value to shareholders and customers alike," he reported.

The positive outlook comes after some very remarkable policy measures undertaken to improve Sunbeach and which will definitely redound to the benefit of shareholders.

Directors in their report for the period ended April 30,2005, said the company incurred a loss before taxation of Bds$936 624 when compared to a larger one of Bds$3.9 million in the previous period.

Turnover ofBds$6.4 million was achieved from the provision of Internet services and the net profit from Internet operations increased from $348 959 in 2004 to $1.1 million the following year.

"Internet customer numbers remained steady during the period, despite negative publicity surrounding the company," said the Directors.

The Board of Directors had informed the company's shareholders at the annual general meeting on November 18,2004, that it had instituted a programme of cost-cutting in the cellular division, until such time as funding was achieved to allow the company to enter the cellular market.

The programme of cost-cutting has been successfully completed.

Results show costs relating to cellular operations have been slashed by more than half.

Whereas payroll costs were $835 611 previously, they were reduced to $552 017 at the end of the reporting period. Although Internet expense and finance costs increased, the bottom line is that overall costs relating to cellular fell from $4.3 million to $2.1 million.

In June 2005, the Board of Directors was informed that THL, a company registered in Trinidad and Tobago, intended to acquire a majority shareholding in the company.

"If the bid proceeds, THL is prepared to provide critical financial, technological and management support to the company and to bring a more dynamic and progressive approach to the development of the company," the Directors said.

In respect of profit from cost containment in the Internet business, there was success as well. Administrative and other expenses were reduced from $1.2 million to $706 323, payroll costs were lower, as did the allowance for depreciation.

Mr. Morley is one of several new faces in management positions at Sunbeach, which in 2003 was given a licence to operate the cellular service.

Government has already okayed the new arrangement with THL.

(The Barbados Advocate Business Monday)