Chamwe Kaira
Stimulus Investments Limited has declared N$3.5 million (2022: N$ 9.3 million) as a final dividend to the preference shareholders.
This translates into a dividend of N$ 0.76 (2022: N$2) per preference share based on 4,650,786 preference shares in issue.
“The preference dividend amount represents the total realised cash returns of Stimulus, after adjusting for fair value gains, for the financial year ended 28 February 2023,” in financial results for the year ended 28 February.
Stimulus total assets under management amounted to N$651.1 million (N$648.8 million) which
included the sale of investments to the value of N$75.2 million during the year. The fair value adjustment on the investment portfolio was N$80.8 million (2022: N$4.0 million).
Stimulus invested an additional N$633 100 within its portfolio during the year under review. The company said dividend income from investee companies reduced by 11.2% to N$17.4 million (2022: N$19.6 million) mainly due to the retention of capital by two of the larger investee companies in order to fund expansionary capital projects.
“The reduction in dividends is offset by an increase in the fair value of the investment portfolio as most of the portfolio companies are reaping the benefits of operational efficiency improvements in combination with a pick-up in demand in certain industries following the recession of the past few years,” the company said.
The proceeds from the disposal of investments amounting to N$75.2 million were paid out as a special dividend to the preference shareholders during December 2022.
“Based on the market value of the portfolio as at 28 February 2023, the net asset value ascribable to each preference share, cum dividend, is N$ 139.91 (2022: N$ 139.40) per preference share. Following the payment of the dividend detailed below, this value will reduce to N$ 139.15 (2022: N$ 137.40) per preference share. This represents a total return to preference shareholders of 13.6% (2022: 1.9%) for the year,” the company said.
Stimulus Investments Limited is private equity investment company. It focuses on acquiring interests in established, high cash yielding businesses in Namibia, as well as targeting other private equity opportunities in promising businesses with potential to deliver high returns.
