NET PROFIT UP 16% TO A RECORD US$2.86 MILLION AS EARNINGS PER SHARE JUMPS 14.3% TO 0.48 US CENTS
(Kingston, Jamaica) Sygnus Credit Investments Limited (“SCI” or the “Company”), the Caribbean leader in private credit investments released its unaudited financial results for the six months ended December 31, 2022 (“6 Month Dec 2022”). SCI reported record net profits and record core revenues for both 6 Month Dec 2022 and the second quarter ended December 2022 (“Q2 Dec 2022”) . These results were driven by the expansion of its private credit portfolio across the Caribbean region, which grew by 54.6% to US$136.07 million. The Company’s Board of Directors will meet to consider a dividend payment on February 21, 2023.
SCI reported record net profit (US$2.86 million up 16.0%), record total investment income (US$4.53 million up 22.7%) and record net investment income (US$2.65 million up 16.2%), for the 6-month December 2022 period. Earnings per share increased to 0.48 US cents compared with 0.42 US cents last year. The performance was aligned with the company’s new thrust of enhancing shareholder value, which was revealed at its recent annual general meeting in January 2023.
Similar to the 6 month results, SCI reported a second quarter record for net profit (US$1.23 million up 28.8%), total investment income (US$2.26 million up 20.7%) and net investment income (US$1.28 million up 10.7%). Earnings per share increased to 0.21 US cents compared with 0.16 US cents for Q2 in 2021.
During the second quarter, the company further increased its diversification by deploying capital into a new industry: a middle-market firm operating in the transportation sector. Excluding the underlying portfolio Acrecent Financial Corporation (“Acrecent” or “AFC”) which it acquired in February 2022, SCI’s private credit portfolio spanned a record thirteen industries across eight territories. Inclusive of the portfolio from Acrecent, SCI was diversified across 22 industries and 12 territories. AFC is not consolidated into SCI.
Phase II of the integration of AFC into SCI remained on-track for completion later this year. In the meantime, the Puerto Rican management team is diligently expanding and scaling the business in collaboration with SCI’s investment manager.
Jason Morris Executive Vice President and Chief Investment Officer at Sygnus Group shared, “The results are a reflection of SCI’s diligent deployment of capital and taking the bold decision to acquire Acrecent Financial Corporation in a spanish speaking US territory in the Caribbean, while the country was still experiencing substantial financial difficulties. Fast forward a year, and Puerto Rico’s economic outlook is substantially brighter for at least the next 5 years given it now has in excess of US$50 billion in financial support from the United States, its “big brother”. Thus, the spanish-speaking leg of the business has the potential to scale substantially over the medium term. On the English and Dutch-speaking leg of the business, we are seeing substantial origination opportunities to deploy capital and help companies grow and expand. The key focus here is to raise substantial pools of capital to fund these opportunities as fast as possible. We will execute this using multiple financing channels from overseas and local sources to diversify our funding mix. This is the path to continue enhancing shareholder value.”
The Company also reiterated its plan to execute a three year buyback program later this year, which will begin once approved for execution by its Board of Directors. The plan is proposing to buy back between US$1 million and US$3 million of its shares per year over the three years. The program was revealed at the Company’s recent annual general meeting in January 2023.
SCI is rated CariBBB- with a stable outlook by Caribbean rating agency CariCRIS on the regional rating scale. The company carries a rating of jmBBB+ with a stable outlook on the Jamaican rating scale. The Company’s credit rating was upgraded one notch in September 2023.
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