Friday 29 May, 2020

Sterling Investment records highest profit since listing

Sterling Investments has recorded its highest annual net profit since listing on the stock exchange in 2014.

Net profit for the twelve months ended December 2019 increased by 88.0 per cent to $101.2 million compared to $53.8 million recorded during the corresponding period of December 2018.

The firm invests in fixed income and equity investments across the globe.

“The company’s strategy of using efficient funding sources has continued to reap rewards for stockholders,” the company’s directors stated in notes attached to the report.

Foreign exchange gains increased by 90.7 per cent to $43.9 million.

SIL’s portfolio benefited from the rise in global asset prices (in USD terms) which in turn led to a marked increase in total comprehensive income from a loss of $21.7 million in 2018 to $211.5 million in 2019.

Total assets, meanwhile, increased by 35.2 per cent to $1.63 billion as at December 31, 2019 compared to $1.21 billion in the prior period.

During 2019, net interest income grew by 20.0 per cent, increasing from $71.2 million in 2018 to $85.4 million in 2019.

The company also recorded an unrealized gain on quoted equities of $1.9 million.

The Jamaican dollar depreciated against the US dollar by $4.85 or 3.8 per cent for the twelve-month period ended December 2019, relative to the same period in 2018 when it depreciated by $2.72 or 2.2 per cent.

The change was reflected in net interest margin of 86.9 per cent.

SIL conducted a rights issue in January 2019, at a price of $3.08 per unit.

Directors said the proceeds of the issue were invested strategically and allowed SIL to increase both the net interest income and net profit.

The company was formed in 2012 when the JMD/USD exchange rate was J$92/US$1 and prior to the National Debt Exchange.

Sterling directors said: “SIL continues to preserve and grow the capital of its shareholders” which include pension funds and long- term investors.

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