August 15, 2023

Sagicor Select Funds Limited Manufacturing & Distribution (SELECTMD) for the six months ended June 30, 2023, reported a 680% increase in Interest Income totaling $5.06 million compared to $648,000 in the corresponding period last year. Interest Income for the Second quarter had a 532% increase to close at $2.55 million compared to $404,000 for the comparable quarter of 2022.

Dividend Income amounted to $55.78 million (2022: $53.36 million), this represents an increase of 5% year over year. Consequently, net changes in fair value decreased by 144% to a loss of $121.11 million compared to a profit $278.15 million for the Six months ended June 30, 2022. The company booked net changes in fair value of $13.41 million for the Second quarter versus $40.82 million reported for the similar quarter of 2022. SELECTMD highlighted, “The drop in the value of financial assets occurred during a general downturn in investor sentiment during the first half of the year due to economic uncertainty globally and rising interest rates.”

Net investment loss closed at $60.27 million (Net investment income 2022: $332.15 million), while Net foreign currency gains/ losses and other income amounted to zero from $73,000 in 2022. As a result, total loss for the six months ended June 30, 2023, amounted to $60.27 million, relative to total revenue of $332.23 million reported in 2022.

Administration expenses for the six months ended June 30, 2023, amounted to $12.70 million, a 34% decrease relative to $19.32 million reported in 2022. Administration expenses for the Second quarter amounted to $6.00 million (2022: $10.94 million).

Total expenses for the six months ended June 30, 2023, had a 34% decrease to reach $12.70 million (2022: $19.32 million). Net loss for the Six months amounted to $72.98 million, from a net profit of $312.90 million reported in 2022. For the Second quarter, Net profit was $38.20 million (2022: $56.43 million). The Company noted, “The loss was due primarily to a net unrealized loss in fair value on financial assets of $121 million.”

Consequently, Loss Per Share for the Six months amounted to $0.02 (2022: EPS: $0.08), while Earnings Per Share for the quarter totaled $0.01 (2022: EPS: $0.01). The twelve-month trailing LPS was $0.10, and the number of shares used in these calculations was 3,816,612,000.

Notably, SELECTMD’s stock price closed the trading period on August 15, 2023, at a price of $0.56.

Balance Sheet Highlights

The company’s assets totalled $3.96 billion (2022: $4.48 billion). The decline in assets stemmed from a $493.15 million decline in Financial assets at fair value through profit or loss to value $3.73 billion.

Shareholder’s equity was $3.94 billion (2022: $4.38 billion), representing a book value per share of $1.03 (2022: $1.15).

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