December 2, 2022
Sygnus Real Estate Finance Ltd for the year ended August 31, 2022, reported Interest Income of $118.51 million, a 21.6% increase when compared to the $97.48 million reported in 2021. Interest expense for the period amounted to $148.10 million, a 67% increase relative to the $88.65 million reported a year earlier, while Interest Expense for the fourth quarter amounted to $46.76 million a 32% increase compared to the $35.52 million booked twelve months earlier. Net Interest Income for the period totalled $69.53 million an increase of 688% compared to the $8.83 million reported in the previous period. For the quarter, SRF generated $18.17 million of net interest income a up from the $8.20 million loss reported in the corresponding quarter a year prior.
The Company noted, “Based on the nature of its business model, SRF’s earnings during interim reporting quarters may experience “lumpiness” in total investment income and net profits, which is typically “smoothed out” at the end of each financial year.”
Fair value loss from financial instruments (FVTPL) closed at $177.82 million relative to $52.68 million gain reported a year earlier. Foreign exchange gain for the period amounted to $38.74 million compared to the foreign exchange loss of $2.54 million the previous year.
Other Income for the period amounted to $16.83 million an increase of 428% from the $3.19 million stated the previous year.
Operating Expenses for the year period declined to $365.44 million, a 39% decrease from the $601.06 million reported in 2021. Of this:
Management fees amounted to $220.38 million (2021: $131.68 million)
Corporate service fees totalled $39.19 million (2021: $26.59 million)
Other expenses amounted to $93.38 million, (2021: $64.88 million)
Performance fees amounted to $12.49 million (2021: $377.91)
For the fourth quarter, SRF spent $93.03 million in operating expenses a 79% decrease from the $451.05 million reported in the fourth quarter of 2021.
For the year ended August 31, 2022, the Company reported an operating profit worth $298.22 million compared to an operating profit of $475.30 million the previous year, while for the fourth quarter the operating profit amounted to $495.85 million, relative to a loss of $500.59 million reported the previous quarter.
The Company reported share of gain from a joint venture for the year ended at August 31, 2022 worth $546.29 million compared to a gain of $29.96 million in the prior year. Taxation for the period amounted to $151. 56 million (2021: nil). Net profit for the period amounted to $692.96 million relative to net profit of $1.81 billion at the end of August 2021. For the quarter, net profit closed at $890.42 million compared to net loss of $467.87 million documented twelve months prior.
Earnings per share (EPS) for the period amounted to $3.70 (2021 EPS: $9.67). EPS for the quarter amounted to $4.75 versus LPS of $2.50 booked in the prior comparable period. The trailing twelve months loss per share amounted to $9.52. The number of shares used in our calculations is 187,392,532. SRFJMD stock price closed the trading period at a price of J$10.03 and SRFUSD closed at $0.11 on December 1, 2022.
Balance sheet at a glance:
As at August 31, 2022, total assets amounted to $13.79 billion, 58% up from the $8.75 billion booked in 2021. This was mainly attributed to the significant increase in the value of ‘Cash’ which rose from $9.10 million in 2021 to $463.37 million at the end of August 2022, representing a 4990% increase.
Shareholders’ equity closed at $7.59 billion relative to shareholders’ equity of $4.71 billion recorded in the prior year’s corresponding period. This resulted in a book value per share $40.50 (2021: $25.13).
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.