Chamwe Kaira
Stimulus Investments Limited has issued a further cautionary announcement to shareholders, saying negotiations are still under way and could have a material effect on its share price if successfully concluded.
The company said the update follows earlier cautionary announcements released on 14 August 2025, 25 September 2025 and 6 November 2025.
Shareholders have been advised to continue exercising caution when trading Stimulus’ preference shares until a further announcement is made.
The board issued the notice through its sponsor, Cirrus Securities, a member of the Namibia Securities Exchange.
In its audited financial results for the year ended 28 February, Stimulus reported an operating profit of N$108.9 million, up from N$76.8 million the previous year.
Net profit for the period stood at N$5.2 million, while total comprehensive income was reported at zero, compared to N$49.8 million in 2024.
The company said its investment portfolio in subsidiaries and associates was independently valued, resulting in a fair value gain of N$97.7 million, compared to N$60.5 million in 2024.
This represents a 14.2% increase, supported by higher operating profits across the portfolio and an improving economic outlook for Namibia.
Dividend income from investee companies declined by 15.6% to N$25.1 million.
Stimulus said this was mainly due to lower distributions from Desert Trade Investments, following the previous year’s partial sale of shares in Namibia Media Holdings and Newsprint Namibia. Adjusted for that transaction, dividend income increased by 2.1%.
The net asset value per preference share, cum dividend, rose to N$165.31 from N$156.19 in 2024.
A final preference dividend of N$13.16 million was declared, equal to N$2.83 per preference share, down from N$18.7 million or N$4.02 per share the previous year. After dividend payments, the net asset value per preference share is expected to reduce to N$162.48.
During the year, Stimulus invested an additional N$10 million in its portfolio, which includes Cymot Group, Khomas Solar Saver, Neo Paints Group, Plastic Packaging Group, Polyoak Namibia, Walvis Bay Stevedoring and Desert Trade Investments.
The company said all portfolio businesses delivered operating profits in line with or above budget.
Stimulus said it continues to explore the sale of properties owned by Desert Trade Investments and remains focused on maximising returns on existing investments rather than pursuing new acquisitions.
After the reporting period, the company held special general meetings on 16 April 2025, where shareholders approved the extension of the redemption date of listed preference shares from 28 October 2026 to 27 February 2032, subject to regulatory approval by NAMFISA.
Caption
Group is one of the companies in which Stimulus Investments Limited has an interest. The company has issued a further cautionary announcement, saying negotiations are ongoing and could affect its share price.
- Photo: Contributed
