Stimulus Investments Limited has reported an operating profit of nearly N$1.32 million for the year ended 28 February 2021, compared to a loss of about N$5.95 million for the same period last year.
The company, however, recorded a total comprehensive loss of N$27.2 million, down from N$35.8 million in 2020.
The company reported a dividend income of nearly N$21.3 million, about N$24.5 million for the period under review.
According to its financials, the company’s operating expenses increased to N$12.8 million, from N$12.3 million prior year.
The company’s finance costs for period were N$31.2 million, down from nearly N$34.7 million last year.
Stimulus’ total assets under management declined by 1.73 percent to close at N$645.7 million.
Stimulus says its portfolio delivered dividend payments totalling N$15.1 million for the year under review compared to N$16.3 last, a 7.6 percent decreased largely attributed to reduced dividend receipts from investee companies, which continued to retain capital to reduce gearing and to hedge against operating uncertainty.
“This was as a result of reduced dividend receipts from investee companies, which continued to retain capital to reduce gearing and to hedge against operating uncertainty. Stimulus deployed additional capital of N$17 million (2020: N$7.5 million) within its portfolio as part of its approach to assist an investee company to grow its business and support its long-term strategy,” the company said.
Stimulus says its investee companies achieved encouraging results for the period ended 28 February 2021, once trade commenced following the Covid-19 lock-down period.
“In some instances, investee companies even managed to make up for the shortfalls caused by the lock-down. These results are testimony to the hard work and resilience of the management teams of these companies in the face of adversity,” the company said.
“The Stimulus team continues to apply its efforts to provide strategic guidance and to ensure that each portfolio company is optimally positioned, both strategically and operationally, to handle this challenging environment in the best possible manner to make them well placed to deliver accelerated results when the economy improves. Our top priorities for the future remain the health and safety of our investee companies’ employees, protecting their livelihoods, safeguarding liquidity and strategically positioning our investee companies for the new reality. We remain positive about the ability for these companies to flourish in a dynamic and changing environment given that they are well capitalised, streamlined in terms of operations and well managed by competent and experienced management teams,” CEO, Josephat Mwatotele said.
Stimulus holds eight investments, in the Plastic Packaging Group, Namibia Media Holdings, Nashua Namibia, CYMOT, Polyoak Packaging, Neo Paints, Khomas Solar Saver and Walvis Bay Stevedoring.