Sygnus Credit Investments (SCI) has achieved another milestone, growing its private credit investment portfolio to a record US$73.58 million for the nine-month period ended March 31, 2021.

In fact, the investment company saw record nine-month core revenues, core earnings and net profits for the period under review. These results were underpinned by growth in its private credit investment portfolio to a record US$73.58 million.

SCI’s allotment of shares to subscribers in its Additional Public Offering (APO) on January 26, raised a record US$27.1 million in additional capital. While the impact of the coronavirus (COVID-19) pandemic on the Caribbean region and on middle-market businesses is ongoing, SCI’s private credit portfolio remains resilient and is well positioned to navigate the effects of the pandemic.

SCI’s core revenues or total investment income grew by 24.4 per cent or US$832.7 thousand to a record US$4.25 million, for the nine months ended March 31, 2021. This compares with US$3.42 million for the nine months ended March 31, 2020.

For the third quarter ended March 2021, total investment income grew by 50.7 per cent or US$533.9 thousand to a record US$1.59 million. This compares with US$1.05 million reported for the third quarter ended in March 2020.

SCI’s core earnings or net investment income grew by 8.4 per cent or US$203.7 thousand to a record US$2.62 million for the period under review versus US$2.41 million for the comparable period in Month 2020. For Q3 2021, net investment income grew by 46.2 per cent or US$305.3 thousand to a record US$966.5 thousand compared with US$661.2 thousand for Q3 2020.

Shareholders profit up 79.6%

Net profit attributable to shareholders grew by 79.6 per cent or US$1.02 million to a record US$2.29 million for the nine months under review versus US$$1.28 million for the comparable period in 2020. For Q3 2021, net profit was US$1.03 million compared to a net loss of US$355.8 thousand in Q3 2020.

Earning per share was a record US$0.56 compared with US$0.36 for the said period in March 2020. Total operating expenses increased to US$1.63 million coming from US$1.00 million in March 2020.

This outcome was driven primarily by higher management fees related to larger assets under management and corporate services fees which began accruing in Q3 2020. Management fees and corporate services fees were a combined 76.1 per cent and 75.8 per cent of operating expenses for the period under review and the third quarter, respectively.

Excluding management fees and corporate services fees, operating expenses were US$389.8 thousand for the nine-month period (up US$125.1 thousand or 47.3 per cent) and US$150.0 thousand for Q3 2021 (up US$21.8 thousand or 17.0 per cent). These increases were primarily driven by higher professional and registration fees.

Net foreign exchange losses

Net foreign exchange losses of US$82.5 thousand were reported for the period under review, which was lower than the losses of US$1.02 million reported for comparable period in 2020. For Q3 2021, SCI reported a loss of US$32.5 thousand versus losses of US$714.4 thousand for Q3 2020.

The movement in foreign exchange losses reflected a combination of SCI’s net exposure to Jamaican dollar assets, which results in unrealized gains or losses, and realized gains or losses based on foreign currency bought or sold. SCI’s net balance sheet exposure to JMD at the end of March 2021 was negative 0.8 per cent or US$702.8 thousand, versus positive 6.7 per cent or US$4.07 million in Q3 2020.

SCI had zero realized losses on its private credit investment portfolio for a 15th consecutive quarter. SCI’s non-performing investment rate (NPI) for Q3 2021 was 3.1 per cent of portfolio company investments, the same as Q3 2020.

This represented two portfolio company investments compared to one portfolio company investment last year, with one new non-performing investment added during Q3 2021. The newly added non-performing portfolio company is expected to be removed from non-performing status in the short term.

Both non-performing portfolio company investments are fully collateralised.