NET PROFIT UP 51.4% TO A RECORD US$4.29 MILLION
Sygnus Credit Investments Limited (“SCI”), A Caribbean leader in private credit investments, released its unaudited financial results for the nine months ended March 31, 2023 (“9 Months 2023”). SCI reported record net profits and record core revenues for the 9 Months 2023. These results were driven by the expansion of its private credit portfolio across the Caribbean region, which grew by 13.0% to US$140.97 million.
SCI reported record net profit (US$4.29 million up 51.4%), record total investment income (US$6.27 million up 11.3%) and record net investment income (US$3.56 million up 2.6%), for the 9-month period. Earnings Per Share increased to 0.73 US cents compared with 0.48 US cents last year. The performance was aligned with the company’s thrust of enhancing shareholder value, which was revealed at its recent annual general meeting in January 2023. Inclusive of the US$1.00 million in dividends paid on April 14, 2023, SCI has paid US$2.55 million thus far in the financial year and US$10.35 million since inception.
Additionally, on May 12, 2023, SCI’s board of directors authorized a three-year share buyback program which will see SCI repurchasing up to US$9.00 million of its ordinary shares. This further reflects SCI’s commitment to shareholders during its initial public offering and as prescribed by the Company’s articles of association.
Phase II of the integration of Acrecent Financial Corporation (“Acrecent” or “AFC”) into SCI remained on-track for completion by the end of the financial 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 Capital shared, “The approval of the three-year share buyback program is aligned with SCI’s keen focus to enhance shareholder value as was outlined at the annual general meeting in January this year. It also fulfils our promise made to shareholders during SCI’s initial public offering and the commitment made in the articles of the Company. The share buyback is intended to be accretive and will coincide with SCI’s current growth and expansion phase. It is similar to buyback programs being executed by many large publicly listed private credit firms. Speaking of growth, we are executing a dedicated investment support program for a growth enhancing sector which is a very exciting prospect for SCI, as we seek to further deepen and expand access to credit for middle-market firms while enhancing shareholder value. We have a robust pipeline of opportunities across multiple English and Dutch-speaking Caribbean territories particularly in Jamaica. The Puerto Rico business has a significant pipeline of opportunities with a strong focus on impact investing themes and has been experiencing very strong growth in originations. Overall, SCI continues to see very strong demand for flexible debt capital across the English, Dutch and Spanish-speaking Caribbean which is in keeping with similar trends in the more developed markets such as the mainland USA. To support the multiple channels of growth opportunities, we continue to negotiate with regional and international partners to access special purpose financing facilities and dedicated credit lines, while simultaneously seeking to raise capital via redeemable preference shares primarily to fund some interesting Jamaican opportunities.”
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.
Sygnus is the leading alternative investment management company in the Caribbean and Latin America, spanning private credit, real estate, and private equity. Sygnus manages Sygnus Credit Investments Limited (SCI) (80 Lady Musgrave Road) which is listed on the JSE and the largest Private Credit Investment company in the English-Speaking Caribbean. SCI is a pioneering private credit investment company, which offers creative debt financing to middle market businesses across the Caribbean. Sygnus Real Estate Finance Limited (SRF) provides flexible capital (Debt or Equity) to all classes of real estate assets (commercial, industrial, or residential). Sygnus Deneb Investments Limited (SDI) invests private equity capital in companies in the form of growth capital, buyouts, and turnarounds. The Sygnus Group also includes Acrecent Financial Corporation in Puerto Rico, a non-bank financial institution that provides asset-backed loans and leases to SMEs in Puerto Rico. Sygnus also offers its clients Investment Banking and Wealth Advisory.
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