Stimulus Investment Limited, directors have resolved that an amount of N$18 million (2023: N$3,5 million) be declared as a final dividend to the preference shareholders, which translates into a dividend of N$4.02 (2023: N$0.76) per preference share based on 4,6 million preference shares in issue.
The company said the preference dividend amount represents the total realised cash returns of Stimulus, after adjusting for fair value gains, for the financial year ended 29 February.
Stimulus said portfolio of investments in subsidiaries and associates was valued by an independent valuator and the resulting fair value gain for 2024 amounting to N$60.5 million (2023: N$80.8 million).
The Stimulus total assets under management amounted to N$726.4 million (2023: N$651.1 million).
The company invested an additional N$5 million (2023: N$0.6 million) within its portfolio during the year.
Dividend revenue from investee companies increased by 71% to N$29,7 million (2023: N$17.4 million) mainly due to the N$12 million dividends from Desert Trade Investments (DTI) pertaining to the partial proceeds from the sale of the shares in Namibia Media Holdings (Pty) Ltd and Newsprint Namibia (Pty) Ltd.
During the period under review, Stimulus disposed of its investment in Namibia Media Holdings (Pty) Ltd and Newsprint Namibia (Pty) Ltd. These entities were held in DTI.
Stimulus holds equity investments in Cymot Group, Khomas Solar Saver (Pty) Ltd, Neo Paints Group, Plastic Packaging Group, Polyoak Namibia (Pty) Ltd, Walvis Bay Stevedoring (Pty) Ltd, as well as Desert Trade Investments that owned the investments in Namibia Media Holdings (Pty) Ltd and Newsprint Namibia (Pty) Ltd and still owns the properties occupied by these two entities.
“The investment portfolio is well positioned to capitalise on improvements in the Namibian economic environment and the potential upswing that may occur due to discoveries and developments in the Namibian energy sector. While the construction sector is still lagging the general economic recovery in Namibia, with a resulting impact on the performance of Stimulus’ investment in the Neo Paints Group, the remaining portfolio companies have started to experience encouraging earnings growth.”
Its 2011 Preference Shares are listed on the Namibian Stock Exchange. These 2011 Preference shares offer the holders thereof exposure to a diversified portfolio of unlisted private equity type investments. The redemption date of the 2011 Preference Shares is 28 October 2026.
“Considering Stimulus’ robust performance across diverse market cycles and the strategic positioning of its current portfolio to capitalise on anticipated economic tailwinds in Namibia, the management team, and the board of Stimulus Investment Limited, are presently engaged in preliminary discussions with key stakeholders.”
