The insurance premium financer Eppley, reported a 17.7 percent increase in profit after tax for the first quarter this year, of $10.6 million over the $8.7 million made in the first quarter of 2015. The profit resulted in earnings per share of $13.27 in the first three months to March this year.
The improved results emanated from interest income of $43 million, down from $44.94 million in the first quarter of 2015 while net interest income ended at $15.4 million compared with $15.95 million in the 2015 quarter. Other operating income ended at $11.64 million from $5 million in 2015.
Administrative expenses climbed a big 34 percent to $16.48 million from $12.3 million.
The Board approved a dividend of $9 per share payable on April 20 to ordinary shareholders on record as of April 11. The board disclosed that they expect to maintain this level of dividend each quarter, to be adjusted with the final quarterly dividend each year, to distribute the vast majority of annual earnings.
Rights Issue|Eppley will be issuing additional ordinary shares to fund the expansion of our business through a rights issue to existing shareholders who will be advised shortly of the terms of the issue.
Proceeds from the rights will improve the equity capital which now stands at a paltry $314 million and improve the debt to equity ratio which is heavily weighted towards medium term redeemable preference shares. Leverage was 3.2 times equity capital at the end of the quarter, with the average cost of debt at 10 percent. At the end of the quarter, cash was $164 million and net asset value of $394 per share, while invested funds consisting mainly of loans, leases and receivables amounted to $1.26 billion, with an average yield of 16%.
Eppley last traded at $505 on the junior market of the stock exchange and boast a PE of 6 based on projected earnings of $80 per share for 2016 which would result in earnings growing by 14 percent over 2015 out come.
Profits up 18% at Eppley
April 30, 2016 by
