Superwash is set for a year-over-year $250,000 increase in energy costs based on expenditure so far, its president and former Chamber of Commerce chief, Dionisio D'Aguilar, said yesterday, as he admitted that despite slight sales increases he has "written off 2011" from a business perspective.

As a guest speaker at the Rotary Club of West Nassau, Mr D'Aguilar said that although signals are such that "the recession has bottomed out", energy costs and disruptive - although necessary - roadwork projects mean the benefits will be minimal.

"2007 was the best year in 43 years of Superwash. In 2008, Lehman Brothers failed and Wall Street collapsed. Sales were down 2 per cent. In 2009, the decline sped up, we went down 6.1 per cent. In 2010, we were down 4 per cent more. Cumulatively, we were 12 per cent down over 08/09 and 2010. It sucked $1.2 million in sales out of the company," Mr D'Aguilar said of his laundromat chain.

"In 2011, the decline stopped. We have seen a 1-2 per cent increase in sales. We feel the recession has bottomed out, and we're waiting to see where we go from here."

The businessman said a major concern are energy costs, which have "sucked a large amount of profit" out of the laundromat chain. "January to April 2010, we spent $34,000 on electricity. January to April 2011, we spent $45,000, up 32 per cent or $11,000 more per month sucked out.

"From January to April 2010 we spent $93,000 on propane. January to April 2011, we spent $103,000 on propane. A $10,000 increase, or a total $21,000 increase per month, or roughly $250,000 a year," Mr D'Aguilar said.

While the company suffers from the energy cost increases, it "cannot increase prices", therefore meaning the cost increase equates to cash "flowing straight out of our bottom line".

The scenario described by Mr D'Aguilar reflects the difficulties being faced by numerous businesses throughout the Bahamas this year, as they try to recover from the recession and build their bottom lines in a fragile economy.

Speaking of the roadworks that have seen sales at his 'flagship' Prince Charles Drive store, in particular, suffer significantly, Mr D'Aguilar said Robinson Road now seems to be a "ghost town" for businesses and agreed that Robin Hood principal, Sandy Schaefer, had "no choice" but to close his Prince Charles Drive location as a result of losses related to the roadworsk which have seen traffic reduced to one lane heading west.

"I hope 2012 will be a good year, but I have written off 2011 because of everything that is going on," said Mr D'Aguilar.

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