Sygnus Credit Investments (SCI) saw its profits soar 71 per cent as its private credit investments (PCI) near doubled for the six-month period ended December 31, 2019.
The St Lucia-registered company, in its unaudited financial results for the period, said its profit attributable to shareholders increased to US$1.63 million or US$677 thousand more than the same period of the previous year.
The rapid growth in its PCI in portfolio companies across the Caribbean saw that revenue stream increase to US$54.3 million. “The rapid growth in PCI was in keeping with SCI’s 2X Growth Strategy: to be the leading source of private credit financing for Caribbean middle-market companies.”
Further, Sygnus said the primary driver of its bettered performance in the second quarter was the “substantially larger net foreign exchange gain of US$683.1 thousand in Q2
A closer look as its finances shows that SCI’s core revenues also saw significant growth of 58.2 per cent to a company record of US$2.36 million for the review period.
“The rapid growth in PCI was in keeping with SCI’s 2X Growth Strategy: to be the leading source of private credit financing for Caribbean middle-market companies.”– Sygnus Credit Investments
Additionally, total investment income increased 45.6 per cent to US$1.27 million.
Operating expenses increased to US$609.2 thousand up to the end of the period, compared to US$460.1 thousand for the corresponding period of the prior year. The figure represents a 32.4 per cent increase which SCI said was largely because of higher management fees from the near doubling of its assets under management. Management fees accounted for 71.2 per cent of total operating expenses, with US$174.9 thousand, or 37.2 per cent more, being spent on other costs. “These were primarily driven by one-off commitment fees relating to the establishment of bank credit and higher accounting fees from reorganisation of accounting functions.”
Earnings per share for the period was US$0.47, an improvement over the US$0.27 cent of the related period of the previous year.
Regarding its outlook, SCI said it plans to build out its long-term relationships with investors, middle-market firms and other stakeholders.