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Sygnus Credit Investments Reporting Record 9 Months of Core Revenues and Earnings, But Lower Net Profits for March 2020 Quarter .

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Sygnus Credit Investments Limited (SCI) is reporting a record nine-months of core revenues and earnings, but lower net profits for the period ended March 31, 2020. This the company said was driven by a reported net loss in the March third quarter, as record investment origination was offset by a number of one-off items, including the conversion of J$1.2 billion to USD, partly from the proceeds of new JMD debt that was issued.

SCI continues to evaluate the impact of COVID-19 on its business but has entered the crisis from an advantageous position with ample liquidity, very low debt, a collection of resilient Portfolio Companies diversified across many regions, and an unprecedented market opportunity for the alternative financing channel, including private credit, to play a major role in financing the recovery and growth of businesses, jobs and economies.

SCI’s core revenues, or total investment income, grew by 38.6% or US$957.5 thousand to a record US$3.43 million, in the nine months ending March 31, 2020. This compares with US$2.48 million for the nine months ended March 31, 2019.

For the third quarter ended March 31, 2020, total investment income grew by 8.9% or US$88.0 thousand to US$1.08 million. This compares with US$988.6 thousand reported for the third quarter ended March 31, 2019.

During Q3 ’20, growth in core revenues was adversely impacted by (i) temporary timing differences between interest expense associated with new debt, and interest income generated from the deployment of that debt into investments and (ii) early exit of a large investment, resulting in lower interest income due to a shorter investment period.

SCI’s core earnings, or net investment income, grew by 38.4% or US$676.9 thousand to a record US$2.44 million for 9 Month 2020, vs US$1.76 million for 9 Month 2019.

For Q3 2020, net investment income fell by 6.7% or US$49.2 thousand to US$685.1 thousand, vs US$734.3 thousand for Q3 2019, primarily due to the aforementioned adverse impact on core revenues.

Net profit attributable to shareholders was US$1.28 million for 9 Month 2020, or US$652.5K (33.8%) lower than the US$1.93 million for 9 Month 2019.

For Q3 2020, net loss was US$355.8 thousand vs US$1.0 million net profit for Q3 Mar 2019, primarily driven by events in Q3 2020, namely; (i) a net foreign exchange loss of US$714.4 thousand relative to gains of US$185.5 thousand in the similar period last year. This loss primarily reflected volatility in the JMD/USD exchange rate on one-off purchases of USD equivalent to J$1.2 billion from JMD debt proceeds and other resources; (ii) the aforementioned adverse impact on core revenues and; (iii) higher provision for expected credit losses of US$180.4 thousand vs US$13.3 thousand gains in Q3 Mar 2019.

Sygnus Credit Investments closed the 9 months ended March 31, 2020, with earnings per share of 0.36 US cents vs 0.55 US cents for 2019, and -0.10 US cents for Q3 2020 vs 0.29 US cents for Q3 2019.

Net investment income per share (NIIPS) was a record 0.70 US cents for 9 Month 2020 vs 0.50 US cents for 9 Month 2019, and 0.20 US cents for Q3 2020 vs 0.21 US cents for Q3 2019.

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Higher Operating Costs And Margin Pressures Impacted Main Event’s Overall Q1 Profitability.

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Entering 2025 with a strategic focus on expanding revenue streams, strengthening client relationships, and maintaining financial discipline, the Company achieved revenue growth.
However, higher operating costs and margin pressures impacted overall profitability.

The Company reported revenues of $585.03M, representing a 3% or $17.28M increase over the $567.75M recorded in Q1 2024. This growth was primarily driven by a significant increase in revenue contribution from a previously underperforming segment, reflecting the success of targeted expansion efforts. While revenue remains below prior peak levels, the Company continues to recalibrate and drive demand through expanded service offerings and strengthened client engagements.

Gross profit for the quarter stood at $301.67M, reflecting a 4% decline from $315.82M in Q1 2024. This decline resulted from higher direct costs associated with event execution, infrastructure upgrades, additional non-recurring costs incurred during the period, and increased labour costs related to service delivery. Consequently, the gross margin contracted to 51.56% from 55.63% in the prior year. The Company remains focused on managing costs effectively to support long-term profitability.

Operating expenses increased to $218.72M, up 7.5% from $206.35M in Q1 2024. This rise was attributed to planned administrative enhancements, a significant one-off expenditure for the Company’s 20th Anniversary celebration, higher personnel costs, increased security and fuel expenses, and a 51% increase in amortisation expenses to $11.36M due to renegotiated lease agreements and the addition of a new lease.

Operating profit stood at $87.48M, a 24% decline from $115.28M in Q1 2024. Increased finance costs, stemming from renegotiated lease agreements and new lease additions, also impacted results.
Net profit for the quarter amounted to $73.67M, a 27% decrease from $100.25M in Q1 2024, influenced by lower gross margins, increased operational costs, and higher impairment charges. As a result, earnings per share (EPS) fell from $0.33 in Q1 2024 to $0.25 in Q1 2025.

Total assets grew by 6.4%, reaching $1,306.01M, up from $1,227.37M in Q1 2024. This increase was primarily driven by a 53% rise in receivables, reflecting expanded customer engagements, with several balances stemming from events executed near the period’s end. Short-term deposits increased to $250.24M from $236.50M, while cash and bank balances declined by 30% to $131.74M from $188.91M due to timing differences in collections and reinvestments.

Shareholders’ equity strengthened to $956.17M, reflecting a 5% increase over $912.66M in Q1 2024. This growth was primarily supported by retained earnings, demonstrating the Company’s ability to generate and reinvest profits efficiently.

Payables increased by 47%, rising to $229.58M from $156.38M in Q1 2024, mainly due to the timing of event executions towards the end of the quarter, resulting in higher accrued expenses related to supplier payments.

While the macroeconomic environment remains uncertain, the Company remains optimistic about the upcoming quarters. The focus will be on enhancing operational efficiencies to manage cost structures effectively and strengthening revenue streams through deeper market penetration and strategic partnerships. Additionally, the Company intends to use owned-events as a driver of revenue growth.
Our continued success is a testament to the dedication, creativity, and resilience of our exceptional team. Their ability to adapt and innovate in a dynamic industry ensures that we consistently exceed expectations and deliver outstanding experiences. Their dedication was especially evident during the holiday period, where they worked tirelessly to execute high-quality events, ensuring continued excellence in service delivery. We also recognise and appreciate the unwavering guidance of our Board; whose strategic leadership continues to drive our company’s growth and long-term vision.

Solomon Sharpe Chief Executive Officer

For More Information on Main Event Entertainment Group Limited (MEEG) Unaudited Results, Q1 – Three Months Ended January 31, 2025 (Revised) Click Here

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