Sygnus profit soars as private credit portfolio expands regionally
Left to right: Ike Johnson, COO & Head of M&A Advisory, Berisford Grey, Co-Founder & CEO, Jason Morris, Chief Investment Officer & Head of Investment Management.
One year after listing on the Jamaica Stock Exchange, Sygnus Credit Investments (SCI), the is reporting an annual record for net profits, core revenues and core earnings, for the financial year ending June 30, 2019.
SCI’s record results were driven by an expansion of the company’s portfolio of private credit investments across the Caribbean region and across industries, in keeping with SCI’s mandate to provide Caribbean middle-market firms with greater access to a non-traditional financing channel.
SCI’s core revenues, or total investment income, grew by169.5 per cent or US$2.02 million to a record US$3.22 million. This compares with US$1.19 million for the financial year ending June 30, 2018. Ninety-eight per cent of core revenues were comprised of interest income.
The company's core earnings, or net investment income, increased 166.3 per cent or US$1.38 million to a record US$2.21 million for the year ending June 2019 Jun 2019, versus US$829.42 thousand for the corresponding year.
Net profit attributable to shareholders increased by 44.0 per cent or US$626.88 thousand to a record US$2.05 million for the year under review, versus US$1.42 million for the year ending June 2019.
“It has been a phenomenal year for Sygnus Credit Investments. In 2019, the company achieved record growth in investment income and profits. Consequently SCI was able to reward investors by announcing generous dividends at the end of the fiscal. SCI is managed by a team of top investment bankers, at Sygnus, and we are committed to establishing SCI as the leading Private Credit Investment company in the region whilst effectively managing risk and generating attractive risk-adjusted returns for shareholders,” stated Berisford Grey, Co-Founder and Chief Executive Officer, Sygnus.
Sygnus Credit Investments offers an alternative channel through which medium-sized firms can access capital in the form of non-traditional credit solutions such as, subordinated notes, profit sharing notes, preference shares, receivable financing, commodity financing, lease, mezzanine debt and other similar structures.
Diversification across the region
For the ending June 2019, SCI’s 19 Portfolio Companies were diversified across eight major industries, up from five in FYE Jun 2018. Three new industries were added during the year, namely telecommunication services, health and lifestyle and financial services.
SCI was diversified across five major Caribbean territories, up from one in the year ending June 2018, and made its first investments in portfolio companies incorporated in the Cayman Islands, St Lucia, ABC Islands (Aruba, Bonaire & Curacao) and Barbados during the year under review.
Companies incorporated in Jamaica accounted for 59 per cent of SCI’s portfolio, down from 100 per cent in the year ending June 2018.
At the end of its 2019 financial year, SCI had investments in 19 portfolio companies relative to seven in the last financial year.
SCI is pioneering the regional private credit market and has a strong pipeline of investment opportunities which the company intends to capitalise on to drive its ongoing growth.