Sygnus Credit Investments reported record nine-month results to March this year, following growth in its private credit investment portfolio to US$73.6 million, from US$47.4 million a year ago. The rapid increase was aided by funds raised in an additional public offering (APO) in January this year that raised US$27 million in additional capital.
Net profit attributable to shareholders grew US$1.02 million or 79.6 percent to a record US$2.29 million for the 2021 nine months period, from US$$1.28 million for the nine months to March 2020. For March 2021 quarter, net profit climbed to US$1.03 million from a loss of US$355,800 in 2020.
Weighted Average Fair Value Yield on Portfolio was 11.8 percent in the March quarter, up slightly from 11.3 percent in 2020 but a bit lower than the 12.3 percent generated for the 2020 fiscal year.
Earnings per share amounted to 0.56 US cents for the nine months to March 2021, up from 0.36 US cents for nine months period in 2020. EPS for the March 2021 quarter amounts to 0.20 US cents, from a loss of 0.10 US cents per share for 2020.
Total investment revenues grew an attractive 45 percent to a record US$5.6 million, for the nine months to March, from US$3.88 million earned in the nine months ended March 2020. For the 2021 March quarter, total investment income grew by 44 percent to a record US$2 million, up from US$1.4 million in March 2020 quarter.
Total expenses incurred amounts to US$680,200 in the March quarter versus US$1.94 million in 2020 and for nine months to March 2021, US$2.32 million and US$1.29 million for the similar period in 2020.
Interest Expense for the latest quarter amounts to US$475,745, up from $355,266 in the 2020 quarter and US$1,454,049 for the nine months to March compared to just US$472,002 in 2020 and resulted in Net Interest Income of $1,546,309 for March 2021 quarter versus US$1,052,737 in 2020 and US$4,170,676 for the nine months to March this year, up from US$3,408,064 in 2020.
The company had fair value gains on Investments and other income of US$165,822 in the March quarter versus a loss of US$122,246 and for the nine months to March 2021, US$189,945 compared to a loss of US$57,082 in 2020. Net foreign exchange losses of US$32,506 were incurred in the March 2021 quarter versus US$714,427 in 2020, with nine months losses of US$82,457 this year against US$1,018,292 in the 2020 period.
Sygnus Credit investments hit record
Impairment allowance on Financial Assets amounts to US$27,573 in the March 2021 quarter, down from US$180,417 in 2020 and US$224,019 for the nine months to March 2021 versus US$302,873 in 2020.
Management and corporate services fees combined rose 56 percent to US$470,116 from US$301,683 in 2020 and grew 69 percent for the nine months to US$1,239,955 from US$735,829 in 2020 as the portfolio under management grew.
Shareholders’ equity stood at $64 million at the end of March, up from $37 million in March 2020. Funds borrowed and used for funding purposes amounted to $19 million, but Jason Morris, a director of the company, states, that they can take the borrowings up to 1.25 times equity, giving them latitude for increased lending to their clients. Morris suggests that the cash on hand of $8.2 million at the end of March would have dwindled by the end of the June year end as they continue to fund new projects and that the pipeline of deals remains robust.
Funds garnered in the public offer that was completed on January 26, was not fully deployed throughout the March quarter, an important factor to consider in assessing the prospects for the June quarter and beyond.
ICInsider.com projects 0.9 US cents of J$1.45 for the 2021 fiscal year and 18 US cents or J$2.70 per share for the fiscal year ending June 2022.
