November 15, 2021
Sagicor Select Fund Manufacturing & Distribution (SELECTMD) for the nine months ended September 30, 2021 reported net investment income of $991.59 million relative to net investment loss of $890.15 million. While for the quarter net investment income closed at $18.51 million compared to net investment loss of $53.43 million.
Dividend income totalled $68.01 million for the nine months (2020: $48.93 million). Whereas, other net changes in fair value amounted to an income of $922.49 million for the nine months relative to a loss of $940.62 million in 2020. For the quarter, other net changes in fair value amounted to a loss of $7.90 million relative to a loss of $71.50 million in the corresponding quarter of 2020. Interest income amounted to $1.09 million (2020: $1.55 million).
Net foreign currency gains/ losses and other income amounted to $60,000 for the nine months (2020: $58,000).
As such, total income for the period under review equated $991.65 million relative to total loss of $890.09 million. The total income for the quarter amounted to $18.52 million relative to total loss of $53.82 million twelve months earlier. The Company highlighted, “Even though there remains some general impact of COVID-19 on dividend pay-out, the impact has not been as steep for companies within the manufacturing sector. Notwithstanding, companies are still cautious and continue to reserve dividend payments to buffer their cash holdings in the event of possible fall-out in the future. Particularly, as shipping costs and input costs have been rising.”
Total expenses for the nine months period closed at $23.29 million (2020: $22.55 million), while for the quarter, expenses amounted to $8.25 million (2020: $8.25 million). Management noted that, “Management fees, and legal & professional fees were the main cost items. Combined, both items accounted for 65.6% of total expenses. Within legal & professional fees there were costs associated with the payment of dividends in July 2021. Funds remitted for management fees increased by 21.6% due to improvement in net asset value. This increase was offset by declines in other fees reflecting a wholesale cost reduction initiative of the company in the last quarter of 2020.”
Consequently, net profit closed the nine months period at $968.35 million relative to a net loss of $912.64 million last year. Whereas, the quarter net profit amounted to $9.89 million versus the net loss of $61.64 million booked last year.
Earnings per share for the period under review amounted to $0.25 relative to a LPS of $0.24 in 2020, while for the quarter, SelectMD booked EPS of $0.003 versus a LPS of $0.02 in 2020. Trailing EPS amounted to $0.32. The number of shares used in this calculation was 3,816,612,000 shares. As at November 16, 2021 the stock traded at $0.70.
Balance Sheet Highlights:
Total assets, as at September 30, 2021, amounted to $4.21 billion (2020: $3.04 billion). Of this, Cash and Cash Equivalents booked $66.90 million (2020: $108.12 million), while Financial assets at fair value through profit or loss totalled $4.14 billion (2020: $2.93 billion). Additionally, Receivables and tax recoverable amounted to $142,000 (2020: $105,000).
Total equity as at September 30, 2021 amounted to $4.19 billion (2020: $3.03 billion), resulting in a net asset value per share of $1.10 (2020: $0.79).
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