SIL reports 35% increase in first quarter net profit

May 16,2018

Sterling Investments Limited (SIL) for the three months ended March 31, 2018, reported a 4% decline in total revenue to $31.44 million compared to $32.59 million recorded for the corresponding period in 2017.

Of total revenue:

  • Interest income closed the period at $20.97 million, up 15% from the $18.16 million for the comparable period in 2017.
  • Gain on disposal of available for sale securities for the period declined to $1.25 million, a 91% or $12.11 million reduction relative to the $13.36 million recorded the prior year. SIL noted, “During the volatility of the first quarter, SIL sought to opportunistically purchase undervalued assets instead of selling assets.”
  • Unrealised loss on quoted equities for the period amounted to $333,844.
  • Foreign exchange gain amounted to $9.55 million, a gross increase of 792% compared to the gain of $1.07 million booked the prior year’s period. SIL indicated that the decrease was as a result of, “The Jamaican dollar depreciated against the US dollar by J$0.98 or 0.78% for the quarter ended March 2018, relative to the same period in 2017 when it depreciated by J$0.23 or 0.18%.”

The company experienced a 40% decline in total expenses for the period to total $6.34 million (2017: $10.53 million) for the year ended March 31, 2018. This resulted from decreases in two expenses categories.

  • Interest expense totaled $2.15 million (2017: $1.14 million).
  • Other expenses totaled $6.39 million, an increase of 1% (2017: $6.30 million).
  • SIL booked an impairment loss on available for sale securities of $2.19 million relative to the gain of $2.69 million for the corresponding period in 2017.
  • The Company booked no unrealised gain on derivative relative to the gain of $392,078 for the corresponding period in 2017.

Operating profit recorded for the period closed at $25.09 million relative to $22.06 million booked for the prior year, a 14% increase year over year.

Other income for the period grossly increased from $463 to $21,672, a 4581% or $21,209 increase.

No preference dividend expense for the period was recorded relative to the $3.50 million recorded in 2017.

Tax charges of $272,753 (2017: $192,886) was booked for the period and as such, net profit amounted to $24.84 million (2017: $18.37 million), a 35% or $6.47 million increase.

Total comprehensive income for the year amounted to $47.81 million compared to $16.16 million booked for 2017.

Earnings per share for the period amounted to $0.42 relative to $0.31 in 2017. The trailing twelve months earnings per share amounted to $0.99.  The total number of shares used in the calculations amounted to 59,370,882 units. Additionally, SIL’s stock price closed at J$12.80 as at the end of trading on May 15, 2018.

Balance Sheet Highlights:

As at March 31, 2018, the company’s assets totaled $1.22 billion, 13% more than $1.08 billion a year ago. This resulted mainly from an increase in ‘Investment Securities’ which closed at $1.18 billion, 14% higher than the $1.03 million booked as at March 31, 2017.  SIL indicated that, “This was funded by a combination of margin, the DRIP and CSPP programmes.”

Shareholder’s equity as at March 31, 2018, stood at $853.30 million compared to $824.53 million in 2017. The book value per share amounted to $14.37 (2017: $13.89).




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