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.