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Stimulus earnings stable amid volatile economic conditions

Stimulus earnings stable amid volatile economic conditions

Local private equity investment company, Stimulus Investments reported a stable portfolio growth of 11.16% in their annual financial results for the year ended 28 February 2017 as compared to 10.06% recorded last year.

According to the firm the growth is reflective of a prudent approach in selecting high quality investments which deliver positive results, despite prolonged economic head winds.

Highlights of the financial results included the 161% growth in Stimulus (preference) dividend of N$32,229,97 which translated into a dividend of N$6.93 per preference share; share acquisitions of N$87.5 million in Khomas Solar Saver and additional investments in Namibia Media Holdings and a strengthened balance sheet as they raised additional capital of N$121.9 million, which brought total assets under management to an aggregate of N$503 million.

The firm in a presentation said the continued stability of the firm’s performance reflects both sectoral diversity of the investment portfolio and the management depth of the respective investee companies.

Meanwhile, the firm said while the portfolio remains robust and continues to deliver returns, they expect market conditions to become increasingly challenging over the next 12 months.

“In this regard we also expect a delayed impact of the general slowdown in economic activity on some of the portfolio companies’ operations over the short to medium term.

Executive Director Josephat Mwatotele is of the view that the challenging trading conditions their investee companies find themselves in, has resulted in Stimulus further increasing its strategic involvement and assisting them to focus on maximizing their core efficiencies in their core areas.

“This allows our management teams to dedicate their energy on enhancing the quality of their products and services while controlling their risks,” he added.

“The focus for the year ahead will continue to be the reduction of un-listed cash, as Stimulus has a strong balance sheet and is well positioned to make additional investments within the portfolio as well as seek new, high quality opportunities,” he said.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.