November 15, 2022
Sterling Investments Limited (SIL) reported a 48% decline in total revenue to $97.03 million compared to $184.94 million recorded for the corresponding period in 2021. Revenue for the third quarter grew 108% to $48.15 million compared to $23.14 million reported for the third quarter of 2021. Of total revenue:
Interest income for the nine months closed the period at $111.96 million, up 4% from the $107.23 million for the comparable period in 2021. SIL noted that this increase, “reflects continued growth in the income earning capacity of the company.”
Gain on disposal of available for sale securities for the period closed at $6.05 million relative to a gain of $23.12 million twelve months earlier.
Net loss on sale of equity investment securities at FVTPL amounted to $524,603 (202: nil).
Foreign exchange loss amounted to $20.46 million compared to the gain of $54.59 million booked the prior year’s period.
The company experienced a 1% decrease in total expenses for the period to close at $70.10 million (2021: $70.46 million) for the nine months ended September 30, 2021 and a 37% increase for the third quarter to $27.66 million (2021: $20.16 million). The breakdown of total expenses for the period ended is as follows:
Interest expense totalled $11.03 million, 8% above last year’s corresponding period’s total of $10.21 million booked twelve months prior.
Other expenses totalled $34.05 million, a decrease of 5% (2021: $36.01 million).
SIL booked $2.28 million for impairment loss on available for sale securities relative to a loss of $12.13 million recorded twelve months earlier.
The Company booked unrealised fair value loss on equity investments securities at FVTPL of $22.74 million relative to a loss of $12.12 million the prior year.
Operating profit recorded for the period closed at $26.93 million relative to $114.48 million booked for the prior year’s corresponding period, a 76% decrease year over year. Operating profit for the third quarter amounted to $20.49 million compared to $2.98 million reported for the same quarter of 2021.
Other Income recorded for the nine months period amounted to a gain of $730,472 relative to other gains of $190,096 booked in 2021.
Pre-tax profit totalled $27.66 million, 74% below the $105.87 million reported for the nine months ended September 30, 2021. No taxes were incurred for the review period (2021: $1.22 million), and as such, net profit amounted to $27.66 million (2021: $104.65 million), a 74% decrease. Profit for the third quarter amounted to $20.51 million relative to $312,647 booked in 2021.
Total comprehensive loss for the nine months amounted to $358.82 million compared to income of $139.95 million booked for the similar period of 2021. For the quarter, total comprehensive loss amounted to $64.92 million (2021: total comprehensive loss of $32.02 million).
Earnings per share for the nine months period and third quarter amounted to $0.06 (2021: $0.24) and $0.05 (2021: $0.001) respectively. The trailing twelve months earnings per share amounted to $0.19. The total number of shares used in the calculations amounted to 418,608,941 units. Additionally, SIL’s stock price closed at $2.80 as at the end of trading on November 14, 2022 with a corresponding P/E ratio of 15.51x.
Balance Sheet Highlights:
As at September 30, 2022, the company’s assets totalled $1.70 billion, 22% less than $2.17 billion a year ago. The corresponding line item affected was ‘Investment Securities’ which closed at $1.66 billion, 22% lower than the $2.13 billion booked as at September 30, 2021.
Shareholder’s equity as at September 30, 2022, closed at $1.17 billion compared to $1.53 billion in 2021. The book value per share amounted to $2.71 (2021: $3.55).
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