August 16, 2023
Sterling Investments Limited (SIL) for the six months ended June 30, 2023 reported a 5% decrease in Interest Income totaling $72.40 million compared to $75.97 million in the corresponding period last year. Interest Income for the second quarter closed at $36.43 million compared to $36.34 million for the comparable quarter of 2022.
Foreign exchange gains amounted to $29.004 million (2022: loss of $32.63 million). Consequently, net loss on sale of debt investment securities at FVOCI to $121,398 compared to gain of $6.05 million for the six months ended June 30, 2022. No net gain or loss on sale of debt investment securities at FVOCI was booked for the second quarter of 2023 versus gain of $1.11 million reported for the similar quarter of 2022.
Total revenue increase by 105% to close at $101.29 million (2022: $49.40 million), while Total Expenses decreased by 57% from $42.44 million in 2022 to $18.14 million in the period under review. As a result, operating profit for the six months ended June 30, 2023 amounted to $83.15 million, a 1095% increase relative to $6.96 million reported in 2022.
Other Income for the six months ended June 30, 2023, amounted to $13,868, a 98% decrease relative to $710,678 reported in 2022. Other Income for the second quarter amounted to $4,375 (2022: $189,156). Pretax Profit totalled $83.16 million, a 984% increase from the corresponding period last year (2022: $7.67 million).
Net Income for the six months ended June 30, 2023 had a 984% increase to reach $83.16 million (2022: $7.67 million) . Total comprehensive income for the six months amounted to $40.13 million compared to loss of $293.90 million reported in 2022. For the second quarter, Total comprehensive income was $60.16 million (2022: loss of $190.94 million.
Consequently, Earnings Per Share for the six months amounted to $0.19 (2022: EPS: $0.02), while Earnings Per Share for the quarter totaled $0.16 (2022: LPS of $0.07). The twelve month trailing EPS was $0.28 and the number of shares used in these calculations was 430,856,886.
Notably, SIL’s stock price closed the trading period on August 15, 2023 at a price of $2.52 with a corresponding P/E ratio of 9.16x.
Balance Sheet Highlights
The company’s assets totalled $1.78 billion (2022: $1.80 billion). ‘Cash & Cash Equivalents’ closed at $533,670 (2022: $24.82 million).
Shareholder’s equity was $1.28 billion (2022: $1.27 billion), representing a book value per share of $2.98 (2022: $2.94).
DISCLAIMER
Analyst Certification –This research report is for information purposes only and should not be construed as a recommendation. 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.