Sterling Investments Limited – Efficient Funding Sources Has Continued To Pay Dividends To Stockholders.
The company’s strategy of using efficient funding sources such as margin, to finance additional bond purchases has continued to pay dividends to stockholders.
This is reflected in the company’s robust net interest margin which increased to 93.9% from 92.5%. Revenue posted strong growth of 18.6%, increasing from J$119.3 million to J$141.4 million.
Net profit grew by 10.4% to J$78.6 million over J$71.2 million for the prior fiscal year. The growth in net profit exceeded the rate of devaluation of 6.7% of the Jamaican dollar in the year.
SIL has grown assets by 4.2%, increasing them from J$935.7million to J$974.7million in the previous year. The portfolio profited from funds raised through the Dividend Reinvestment and Complementary Share Purchase programmes launched in the second half of the year.
In July 2016, SIL introduced two new programmes to the market. These were the Dividend Reinvestment Programme (DRIP) which allows investors to reinvest their dividends automatically as well as the Complementary Share Purchase Programme (CSPP) which allows existing shareholders to purchase shares once every calendar quarter. These programmes are in line with the strategic direction of the company and have contributed nicely to growth in the company’s assets by contributing to the funding of the investment portfolio.
The CSPP has created an opportunity for stockholders to increase their holdings through an inexpensive avenue both for the company and the stockholders. The additional capital will increase the assets in the portfolio which will be shrewdly managed to maximize return and strategic profit taking.
During 2016, SIL paid $19,324,092 to stockholders in dividends, representing a dividend yield of 2.2%. Dividends are paid in USD, which affords investors a hedge against devaluation. The dividend payout in 2016 was 10.3% higher than the amount paid out in the prior year.
Edited from Derek Jones – Chairman Sterling Investments Limited report to shareholders contained in SIL 2016 Annual Report.
Sterling Investments Limited (SIL) is registered as an international business company in St. Lucia. SIL is an investment holding company that was formed in 2012 and exists to protect and grow the capital of its stockholders. Early investors in SIL avoided the National Debt Exchange, 14% devaluation in 2013 and 8% devaluation in 2014. SIL listed its ordinary shares on the Main Market of the Jamaica Stock Exchange in October 2014.
Click HERE to view full report