Date: November 14, 2018
Sygnus Credit Investments Limited for three months ended September 30, 2018, reported Interest Income of US$605,729, 251% increase on the US$172,330 recorded in 2017. Management noted, “Total investment income represents the core revenues of SCI and was primarily driven by interest income from investments (97% of the total). Net investment income, which represents SCI’s core earnings, was US$394.0 thousand (0.10 US cents per share), up US$263.2 thousand or 201.3% over the US$130.8 thousand (0.09 US cents per share) reported for the September quarter in 2017. This was driven by the US$620.7 thousand in total investment income less US$226.7 thousand in total operating expenses, which grew by US$185.1 thousand over the corresponding period in 2017.”
The Company also reported fair value gains of US$14,870 and Participation fees of US$14,944 which resulted in a total income of US$635,543 million.
Total Expenses for the period amounted to US$993,904, a 697% surge relative to US$124,705 recorded for the corresponding period in 2017.
Notably, Net foreign exchange loss totalled US$743,596, 794% more than the loss of US$83,146 booked for 2017while Management fees amounted to US$173,642 (2017: nil). The Company noted, “Net foreign exchange losses were driven by a one-time realized loss of US$297.4 thousand from the purchase of 5.4 million US dollars and unrealized losses from movement in the JMD/USD exchange rate on SCI’s JMD assets. Unrealized losses reflected movement in the exchange rate which ended the period at 134.04 from 129.39 the preceding quarter.”
No taxation for the period was recorded; as such a loss for the period of US$358,361 million was booked for the quarter, relative to a profit of US$47,625 in 2017.
As a result, Loss per share (LPS) for the period amounted to US$0.002 (JMD: $0.265) relative to an earnings per share of US$0.0003(JMD: $0.034) for 2017. The number of shares used in our calculations amounted to 184,311,300 units. Notably, Sygnus was listed on the Main Market of Jamaica Stock Exchange (SCIJMD) on June 18, 2018 at a price of J$13.72 and the US Market (SCIUSD) at a price of US0.11. The stock closed the trading period on November 14, 2018 at a price of J$12.02 and US$0.10 respectively.
Balance Sheet Highlights
As at September 30, 2018, Sygnus’ total assets amounted to US$37.09 million, a 132% increase on 2017’s assets base of US$16.02 million. This was due to an increase in ‘Securities purchased under resale agreements’ to US$15.58 million (2017: US$3.44 million), ‘Investments’ which closed at US$18.00 million (2017: US$10.35 million).
Total Stockholders’ equity as at September 30, 2018, closed at $35.79 million, a 124% increase from $16.00 million for the corresponding period last year. This resulted in a book value per share of $0.19 compared to the value of $0.09 as September 30, 2017.
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