Sygnus reports 51% increase in three months net profit

November 12, 2020

In United States dollars (except where it is indicated otherwise)

Sygnus Credit Investments Limited, for the three months ended September 30, 2020 reported Interest Income of approximately US$1.70 million, a 51% increase on the US$1.13 million recorded in 2019. Interest expense for the quarter amounted to US$412,546 (2019: US$40,937), resulting in net interest income of US$1.29 million (2019: US$1.09 million).

The Company reported Fair Value Gains of US$47,744 (2019: US$198,006) and other income of US$22,997 (2019: US$7,000). As such, Sygnus reported first quarter total revenue of US$1.36 million compared to US$1.29 million in 2019.

Total Expenses for the three months amounted to US$559,043 a 27% decline relative to US$762,808 recorded for the corresponding quarter in 2019. Of total expenses:

  • Management fees amounted to US$303,004 (2019: US$200,697).
  • Other expenses amounted to US$167,123 (2019: US$84,850)
  • Net foreign exchange loss for the quarter closed at US$34,198 (2019: US$505,114)
  • SYGNUS reported US$54,718 for impairment allowance on financial assets.

Profit for the quarter closed at US$797,840 relative to a profit of US$527,923 for the same quarter in 2019.

Total comprehensive income also closed at US$797,840 (2019: US$527,923) for the period under review.

As a result, Earnings per share (EPS) for the quarter amounted to US$0.0023 (2019: EPS of US$0.0015). The trailing twelve months EPS amounted to US$0.0121. The number of shares used in our calculations amounted to 350,087,563 units. Notably, SCIJMD and SCIJA closed the trading period on November 11, 2020 at a price of J$17.29 and J$13.06 respectively. Both SCIUS and SCIUSD closed the trading period on November 11, 2020 at US$0.13.

SYGNUS noted, “SCI’s Portfolio Companies were diversified across 10 major industries and 7 regions across the Caribbean at the end of Q1 Sep 2020. Excluding dry powder, the top industry allocations were Infrastructure (17%), Manufacturing (17%) and Hospitality (16%). No industry had an allocation above 20%. Portfolio Companies from Jamaica accounted for the highest allocation of SCI’s portfolio at 50%, followed the Dutch Caribbean islands of Saba, St Martin and St Eustatius (SSS Islands) at 17% and St Lucia at 12%.”

Balance Sheet Highlights

As at September 30, 2020, Sygnus’ total assets amounted to US$68.53 million, a 72% increase on 2019’s assets base of US$39.86 million. This was primarily due to an increase in ‘investments’ to US$60.34 million (2019: US$27.21 million).

Total Stockholders’ equity as at September 30, 2020, closed at US$37.60 million, slight increase from US$37.24 million for the corresponding period last year. This resulted in a book value per share of US$0.11 (2019: US$0.11).


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.