The parent company of dock services firm Stevedoring Services Ltd today reported an annual loss of $1.8 million for the year ended March 31, 2014.

Polaris Holding Company Ltd said in a statement that much of the loss was down to a $1 million write-down of a real estate holding, while it also took a hit from restructuring costs.

The Bermuda Stock Exchange-listed company said that it had proposed increased rates for its services to the Corporation of Hamilton and the Ports Authority for 2015 and 2016.

“If approved, implementation is planned for January 2015,” Polaris said. “This is a key ingredient in bringing Stevedoring in line with the costs of doing business.”

Apart from the real estate write-off, Polaris said it also 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 $373,000 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 unaccrued back-pay charge.

Chairman Cheryl Hayward-Chew expressed 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,” she said.

“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 chairwoman of the prominent stevedoring company in June 2013 as part of a bigger reorganisation which culminated on January 1, 2014 with the hire of chief executive officer Warren Jones.

Mr Jones, former Permanent Secretary for Education, said: “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.”

Linda Amaral, the company’s newly appointed financial comptroller explained the decision to write down the value of Polaris’ real estate holding.

“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.”

Polaris said the management’s immediate focus is to improve Stevedoring Services, and to create a reputation for reliable, efficient and consistent service.

The statement added: “A formal training programme 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.

Polaris forecast a flat but steady 2015 with “a more robust fiscal 2016”.