Sygnus Reports Highest Net Profit and EPS in its 4-year History

• Sygnus Credit Investment Ltd reported a 154.8% year over year increase in net profit to US$5.03Mn for its financial year ending June 30, 2021, on the back of an increase in net interest income and fair value gains from financial instruments.
• The results were driven by new investment origination activity across the Caribbean at attractive yields, continued proactive credit risk management and growth in its private credit investment portfolio to US$82.80 million. Sygnus’ capital raise of US$27.1 million via additional public offering (APO) of 249,887,900 ordinary shares earlier this year provided it with additional capital to expand its credit portfolio.
• Expenses rose by 9.6% largely owing to higher management and corporate services fees related to higher assets under management, first time performance fees and some one-off expenses. Core activities resulted in an efficiency ratio of 42.0% for FYE Jun 2021, vs 32.7% for FYE Jun 2020. First-time payment of a performance fee, accounted for 5.4 percentage points of the 42.0%.
• While the pandemic continues to evolve, management indicated that it remains committed to proactively managing the risk of its private credit portfolio. It also expects to maintain a strong balance sheet with a high asset coverage ratio and low leverage; as well as deepen current partnerships and build new relationships across the Caribbean to widen its regional footprint and grow the business well beyond the duration of the COVID-19 pandemic.
• SCI’s JMD stock price has risen by 1.3% since the start of the year and closed Tuesday’s trading session at a price of $16.45 per share. At this price, the stock trades at a P/E ratio of 10.5x earnings, which is below the Main Market financial sector average of 14.9x. On the other hand, USD share price is unchanged year to date with the P/E at 10.7x, which is above the USD sector average of 7.7x.

(Source: SCI Financials)