August 17, 2021
Sagicor Select Fund Manufacturing & Distribution (SELECTMD) for the six months ended June 30, 2021 reported dividend income of $41.80 million (2020: $31.28 million). Interest income closed the six months period at $890,000 and relative to $1.12 million, last year. Gain on sale of financial assets at fair value through profit or loss amounted to $930.39 million relative to a loss of $869.13 million booked last year.
Net Investment income amounted to $973.08 million relative to a net investment loss of $836.72 million booked last year.
Net foreign currency gains/ losses and other income amounted to $50,000 (2020: 28,000).
As such, total revenue for the six months under review equated $973.13 million relative to total loss of $836.70 million the previous year. The total income for the quarter amounted to $464.51 million relative to total income of $243.39 million twelve months earlier.
Total expenses for the six months period closed at $14.67 million (2020: $14.30 million), while for the quarter, expenses amounted to $6.92 million (2020: $3.51 million).
Consequently, net profit closed the six months period at $958.46 million relative to a net loss of $851 million last year. Whereas the quarter net profit amounted to $457.59 million versus the net profit of $239.88 million booked last year.
Earnings per share for the period under review amounted to $0.25 relative to a LPS of $0.22 in 2020, while for the quarter, SelectMD booked EPS of $0.12 versus an EPS of $0.06 in 2020. Twelve-month trailing EPS was $0.30. The number of shares used in this calculation was 3,816,612,000 shares. As at August 16, 2021 the stock traded at $0.84.
SELECTMD reported that, “The outturn for Q2 of 2021 was primarily due to unrealised appreciation in the value of investments. This reflected increases in some prices of listed manufacturing and distribution companies relative to the end of March 2021. The JSE Manufacturing & Distribution index rose by 13.4% during the June 2021 quarter, with 25 of the 32 securities in the index recording price increases.”
Also, “Overall, the impact of COVID-19 on profits has impacted dividend payout, as some companies reduced pay-out. Even though some companies are still reserving dividend payments to buffer their cash holdings in the event of possible fall-out in the future. However, the improvement in dividend income during the Q2 of 2021 in part reflects that companies within the sector that provide household items may not have be adversely impacted by the global pandemic,” as per Management.
Balance Sheet Highlights:
Total assets, as at December 31, 2021, amounted to $4.24 billion (2020: $3.10 billion). Of this, Financial assets at fair value through profit or loss totalled $4.15 billion (2020: $3.01 billion).
Total equity as at December 31, 2021 amounted to $4.18 billion (2020: $3.09 billion), resulting in a net asset value per share of $1.10 (2020: $0.81).
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