Members' Distribution Address 2010

Greetings to all. Well, the second 2010 Distribution is upon us, the first having been in April. As you already know, despite our earnest hopes against hope, 2009 was yet another financially devastating year for COTT, much as it was for a convincing majority of all organisations WORLDWIDE!! And, based, as they are, on 2009 financial performance, our 2010 Distributions are as disappointing as COTT’s Management had long predicted and forewarned, particularly during the course of our face-to-face interactions with you, even outside of our three Members’ meetings of December last year, and the AGM in 2010 February.

Though we all clearly understand that this rough patch has been essentially the direct result of the global financial meltdown, which spared no one, and resulted in the fatal collapse of thousands and thousands of businesses worldwide, even that awareness, at times, does not seem to provide sufficient consolation for our meagre earnings and lightened pockets.
 

You may recall that, in order to counteract the effect of the international financial crisis, COTT:
1) Froze the salaries of ALL its staff members w.e.f. 2008 January 01 (TWO AND A HALF YEARS AGO),
2) Reduced the commissions of its Licensing Representatives and Associates, from 2009 June, and
3) Took the decision to make seven positions redundant, and the painful step of actually terminating four members of staff, with effect from 2009 August.

Despite the above though, COTT was NOT in a position to reverse the drastic reduction in radio / TV / Cable broadcasters’ revenue, which is the core of COTT’s ‘Media Licensing’ earnings; neither was COTT able to cause more fetes / parties / functions to be held, or more patrons to attend the few that were actually held; nor was COTT in any position to cause Calypso Tents to regain their glory of days past, and burst at their seams. As you well know, COTT’s revenue is derived DIRECTLY from the earnings of its many customers and clients, all of whom have suffered tremendously over the last two years or so . . . Lower Customer Earnings = Reduced COTT Revenue = Smaller Distributions!!!

Members should note also that the current Distribution does not include any disbursements in respect of National Carnival Commission (NCC) entitlements. This is because no money has yet been received from the NCC. Management is vigorously pursuing this matter on your behalf.

In addition to the above, members will recall their request of Management to take appropriate steps to minimize the overall cost of acquiring the new building at Abercromby Street. To this end, Management opted to accelerate the repayment of the Loan taken to buy the building. This resulted in an additional $3.3 million (recovered from the sale of the Jerningham Avenue property) being applied to that purpose in 2009, leading to an equivalent reduction in the money available for distribution.

In spite of this prevailing (and temporary) financial entanglement, however, we are confident that you will continue to extend to COTT your patience and support, as much of the action instituted by the Board and Management has already begun to bear fruit. The organisation’s performance for the first six months of 2010 has been showing encouraging signs of recovery, with modest increases in revenue and reductions in expenditure being recorded on the company’s books.
We all know that REAL financial renewal will not happen overnight . . . In fact, History has taught us that IT CANNOT! Sustainable recovery must be gradual and steady, and you have the assurance that your Board, Management and Staff will continue to do all within their collective power to ensure that, soon again, you will derive maximum benefit from your musical creations.
YOURS IN MAKING MUSIC MATTER
The Board and Management

Posted by: admin::Nov 12, 2010

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