Stimulus reports shrinking loss
Jo-Maré Duddy – Stimulus Investments Limited (SILP), whose preferential shares are listed on the Local Index of the Namibian Stock Exchange (NSX), reported an operating profit of nearly N$1.32 million for the year ended 28 February 2021, compared to a loss of about N$5.95 million for the same 12 months in 2020.
It reported a dividend income of nearly N$21.3 million, about N$24.5 million or 53.5% lower than in its 2020 book-year.
The company’s operating expenses were about N$12.8 million, up from about N$12.3 million in 2020. Fair value adjustments on investments were reclassified to operating activities and therefore included in operating profit, the company said.
SILP’s fair value adjustments for the year under review amounted to nearly N$7.2 million negative, compared to some N$39.4 million negative in 2020.
Preference shares are carried at fair value, with changes in fair value and preference dividends paid being recognised as finance costs in profit or loss for the year under review, SILP said.
The company’s finance costs for 2021 were nearly N$31.2 million, down from nearly N$34.7 million a year ago.
‘CHALLENGING’
The company’s total comprehensive loss for its 2021 financial year was nearly N$27.2 million, compared to a loss of nearly N$35.8 million in 2020.
Total assets under management amounted to about N$645.7 million, down 1.73% year-on-year (y/y).
“Despite the challenging economic conditions experienced across many sectors of the Namibian economy, the portfolio companies generally performed satisfactorily,” Stimulus said, adding: “Investment opportunities are scarce and have long lead-times.”
According to Stimulus: “The Covid-19 pandemic continues to be a health crisis with a significant impact of the Namibian economy. The Stimulus portfolio has suffered depressed activity due to this situation and the Namibian recession has deepened.”
Commenting on a thorough analysis of the impact of the pandemic on the company, Stimulus said: “Due to the fixed investment horizon, strong balance sheet and adequate cash reserves, the conclusion was that Stimulus can continue as a going concern for the foreseeable future.”
The total preference share dividend amounted to about N$9.6 million in the year under review, compared to nearly N$15.1 million in the previous year.
It reported a dividend income of nearly N$21.3 million, about N$24.5 million or 53.5% lower than in its 2020 book-year.
The company’s operating expenses were about N$12.8 million, up from about N$12.3 million in 2020. Fair value adjustments on investments were reclassified to operating activities and therefore included in operating profit, the company said.
SILP’s fair value adjustments for the year under review amounted to nearly N$7.2 million negative, compared to some N$39.4 million negative in 2020.
Preference shares are carried at fair value, with changes in fair value and preference dividends paid being recognised as finance costs in profit or loss for the year under review, SILP said.
The company’s finance costs for 2021 were nearly N$31.2 million, down from nearly N$34.7 million a year ago.
‘CHALLENGING’
The company’s total comprehensive loss for its 2021 financial year was nearly N$27.2 million, compared to a loss of nearly N$35.8 million in 2020.
Total assets under management amounted to about N$645.7 million, down 1.73% year-on-year (y/y).
“Despite the challenging economic conditions experienced across many sectors of the Namibian economy, the portfolio companies generally performed satisfactorily,” Stimulus said, adding: “Investment opportunities are scarce and have long lead-times.”
According to Stimulus: “The Covid-19 pandemic continues to be a health crisis with a significant impact of the Namibian economy. The Stimulus portfolio has suffered depressed activity due to this situation and the Namibian recession has deepened.”
Commenting on a thorough analysis of the impact of the pandemic on the company, Stimulus said: “Due to the fixed investment horizon, strong balance sheet and adequate cash reserves, the conclusion was that Stimulus can continue as a going concern for the foreseeable future.”
The total preference share dividend amounted to about N$9.6 million in the year under review, compared to nearly N$15.1 million in the previous year.
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