Sygnus’ Net Profit Declines

• Sygnus Credit Investments Limited’s (SCI) audited net profit for the financial year ended June 30, 2020, declined by 3.8% (or US$0.78Mn) year over year to US$1.97Mn (EPS: US0.56¢).
• The drop in the Group’s bottom-line was primarily driven by a 100.9% (or US$1.32Mn) increase in expenses, which outweighed the 36.3% (or US$1.22Mn) growth in total income. Further, the rise in expenses was largely influenced by a 374.6% (or US$0.82Mn) expansion in net foreign exchange losses and a 42.3% (or US$0.30Mn) increase in management fees.
• Although SCI had record origination of private credit investments across the Caribbean region, the results were adversely impacted by the one-off conversion of J$1.20Bn to USD. This J$1.2Bn was a combination of part proceeds of new JMD debt that was raised, and part proceeds of JMD investments that were exited during the third quarter.
• The results were also impacted by the one-off unscheduled investment exit of US$10.30Mn during the third quarter, sparked by the onset of COVID-19.
• The company’s stock price has declined by 40.8% since the start of the year, closing Thursday’s trading session at $15.39. At this price, the stock currently trades at a P/E of 19.9x earnings, which is above the Main Market Financial Sector Average of 17.0x.

(Source: SCI Financials)