August 11, 2020
Sagicor Select Fund Manufacturing & Distribution (SELECTMD) for the six months ended June 30, 2020 reported net investment loss of $836.72 million. While for the quarter net investment income closed at $243.38 million
Fees and other income closed the six months period at $28,000 and the second quarter at $10,000.
As such, total loss for the period under review equated $836.70 million. The total loss for the quarter amounted to $243.39 million. The Company highlighted, “This outturn was lower compared to the previous quarter, and possibly reflects the impact of COVID-19 on company’s operations. The companies within the sector that provide household items may not be adversely impacted by the global pandemic. However, some companies are still reserving dividend payments to buffer their cash holdings due to possible fall-out in future.”
Total expenses for the six months period closed at $14.30 million, While the quarter at $3.51 million. Management noted that, “The cost was largely comprised of management fees and transaction costs of J$1.5 million and J$0.8 million, respectively. During the quarter, the fund capitalized from the lowering prices on the market and acquired holdings to improve the portfolio weightings. This led to portfolio weightings moving closer towards the index weightings during the quarter.”
Consequently, net loss closed the six months period at $851 million while, the quarter net profit amounted to $239.88 million. The company noted, “This was primarily due to unrealised appreciation in the value of investments of J$230.5 million. The appreciation in investment value reflected a general increase in the prices of listed manufacturing and distribution companies relative to the end of March 2020. This was evidenced by the higher value of the JSE Manufacturing & Distribution index by 9.8% since the end of March 2020.”
Loss per share for the period under review amounted to $0.22, while for the quarter, SelectMD booked EPS of $0.06. The number of shares used in this calculation was 3,783,443,000 shares. As at August 10, 2020 the stock traded at $0.79.
Balance Sheet Highlights:
Total assets, as at June 30, 2020, amounted to $3.10 billion. Of this, Cash and Cash Equivalents booked $83.21 million, while Financial assets at fair value through profit or loss totalled $3.01 billion. Additionally, Receivables and tax recoverable amounted to $10.35 million and 91,000, respectively.
Total equity as at June 30, 2020 amounted to $3.10 billion, resulting in a net asset value per share of $0.81.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein
