February 15, 2022
In United States dollars (except where it is indicated otherwise):
Sygnus Credit Investments Limited, for the six months ended December 31, 2021, reported Interest Income of US$4.70 million 31% increase on the US$3.60 million recorded in 2020. For the quarter, Interest Income rose 29% to US$2.46 million (2020: US$1.90 million). Interest expense amounted to US$1.02 million for the six months (2020: US$978,304). As a result, net interest income for the period amounted to US$3.68 million (2020: US$2.62 million), while for the quarter net interest income closed at US$1.86 million (2020: US$1.34 million).
The Company also reported Fair Value Gain of US$373,148, relative to a loss of US$168,773 booked in 2020 and other income amounted to US$13,055 (2020: US$61,033).
As such, Sygnus reported net revenue of US$4.07 million compared to US$2.52 million. For the quarter, Sygnus booked net revenue of US$1.80 million versus US$1.16 million for the quarter ended December 31, 2020.
Total Expenses for the period amounted to US$1.58 million, a 25% increase relative to US$1.26 million recorded for the corresponding period in 2020. Of expenses:
- Net foreign exchange loss totalled US$37,024 (2020: US$49,951).
- Impairment allowance on financial assets amounted to US$126,032 (2020:US$196,446).
- Other expenses for the period amounted to US$319,778 (2020: US$239,795).
- Management fees amounted to US$887,487 (2020: US$647,802) for the period under review.
- Total expenses for the quarter amounted to US$840,582 relative to US$696,988 recorded for the same quarter of 2020.
Profit for the period amounted to US$2.46 million, 95% up from 2020’s US$1.26 million. As for the quarter the Company booked profit of US$953,934, 106% higher than US$462,756 for the same quarter of 2020.
As a result, Earnings per share (EPS) for the period amounted to US$0.00422 relative to an earnings per share of US$0.00214 for 2020. EPS for the quarter amounted to US$0.00162 (2020: US$0.00078). The twelve months trailing EPS amounted to US$0.0105. The number of shares used in our calculations amounted to 590,975,463 units. Notably, SCIJA and SCIJMD closed the trading period on February 14, 2022 at a price of $0.12 and $15.91, respectively. SCIUS and SCIUSD closed the trading period on February 14, 2022 at US$0.12 and US$13.06, respectively.
Management noted, “SCI continues to focus on three key priorities during this COVID-19 period: 1. Proactively managing the risk of its private credit portfolio, that is, minimizing “realized” credit losses, versus “expected credit losses”, as the latter will fluctuate based on market conditions, but the former is permanent loss of shareholder value. 2. Maintaining ample liquidity and a flexible capital structure to support existing Portfolio Companies while playing offense its robust pipeline of investment opportunities across the Caribbean. 3. Deepening current partnerships and building new relationships across the Caribbean to widen its regional footprint and grow the business well beyond the duration of the COVID-19 pandemic.”
Balance Sheet Highlights
As at December 31, 2021, Sygnus’ total assets amounted to US$110.34 million, a 54% increase on 2020’s assets base of US$71.69 million. This was mainly due to an increase in ‘Investments’ to US$86.06 million (2020: US$65.11 million).
Total Stockholders’ equity as at December 31, 2021, closed at $67.65 million, a 78% increase from $38.06 million for the corresponding period last year. This resulted in a book value per share of US$0.114 (2020:US$0.064).
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