Investment company Eppley Limited posted profit after tax of $165 million in the first nine months of 2020, 50 per cent more than over the same period last year.
Directors said profits grew significantly despite a reduction in interest income.
Interest income decreased mainly due to the termination of a few large factoring arrangements recorded in 2019 that expired this year, as well as a shift in the composition of the company’s investment portfolio, they outlined. Profitability growth was driven primarily by the expansion of Eppley’s asset management business.
For the review period, the company produced earnings per share of $0.86, a 27 per cent return for shareholders so far this year. At the end of the quarter, net asset value was $4.71 per share.
At the end of the September quarter, the company owned a $3.8 billion investment portfolio consisting of cash, loans, leases, receivables and investments in its mezzanine, real estate, infrastructure and asset management joint ventures and subsidiaries.
The average income yield of our portfolio was 12 per cent.
The company managed the equivalent of approximately US$78 million of capital for investors at the end of the second quarter mainly through the Eppley Caribbean Property Fund and the Caribbean Mezzanine Fund.
Company leverage was 3.2 times capital at the end of the quarter and average cost of debt was 6 per cent.
Eppley ended the quarter with $490 million of cash.
Directors said asset management fees and the dividends received from subsidiaries and affiliates are income streams which are stable and recurring and enhance the quality of Eppley’s earnings and the resilience of its business.
The Board of Directors approved a dividend of 3.72 cents per share payable on December 15 to ordinary shareholders on record as of November 30th.