Chamwe Kaira
Stimulus Investments Limited reported lower profit for the year ended 28 February 2026 despite continued growth across its investment portfolio and higher dividend income from investee companies.
The listed investment company recorded a profit of N$22.7 million, down from N$49.8 million in 2025.
Operating profit also declined to N$85.3 million from N$108.9 million the previous year.
Stimulus said its net assets under management still increased by 9% during the financial year, compared to 12.7% growth in 2025.
The company invests in unlisted businesses for capital growth and investment income.
Its portfolio includes Cymot Group, Khomas Solar Saver, Neo Paints Group, Plastic Packaging Group, Polyoak Namibia, Walvisbay Stevedoring and Desert Trade Investments.
Stimulus said all businesses within the portfolio recorded satisfactory operating profit growth during the year.
An independent valuation of subsidiaries and associates resulted in a fair value gain of N$64 million for 2026, compared to N$97.7 million in the previous year.
During the financial year, the company sold partial minority stakes in Cymot Group and Walvisbay Stevedoring to employee share trusts linked to the businesses.
Stimulus said the transactions were completed at fair value and aimed at increasing employee participation while supporting long-term management succession.
Dividend income from investee companies rose by 45% to N$36.4 million from N$25.1 million previously.
The company said stronger cash generation across the portfolio supported the increase.
Cash and money market investments increased to N$72.4 million from N$32.1 million, partly due to proceeds from the partial stake sales.
Stimulus noted that part of the proceeds remains deferred and will be received over time.
The company invested an additional N$5 million into its portfolio during the year, compared to N$10 million invested in 2025.
Net asset value attributable to each preference share increased to N$176.24 from N$165.31.
Directors declared a final dividend of N$4.87 per preference share, amounting to N$22.6 million in total, compared to N$2.83 per share in 2025.
Looking ahead, Stimulus said Namibia’s projected economic growth of 2.6% in 2026 and 2.9% in 2027 could benefit portfolio companies operating in construction, retail and mining.
The company also warned that geopolitical tensions, including the wars in Ukraine and the Middle East, continue to create volatility in commodity and shipping markets, contributing to higher oil prices and supply chain disruptions.
Stimulus added that its board is pursuing the sale of properties owned by Desert Trade Investments and may consider further exits from investments where financially viable.
