SEL DIVIDEND DROPS TO E22.7M

MBABANE – Swaziland Empowerment Limited (SEL) has dropped to E22.7 million. 

When asked what the declared interim dividend of E22 755 000 means in terms of the company’s profitability during the period under review, Company Secretary Makhosazana Mhlanga pointed out that SEL has a 19 per cent stake at Swazi MTN and its main source of income were dividends received from Swazi MTN. She explained that SEL receives dividend income from Swazi MTN Limited and they in turn declare dividends of 99.5 per cent of received dividends to its shareholders. “The drop in dividend income was due to the fact that Swazi MTN declared 80 per cent of its profit after tax in 2017 compared to 100 per cent of profit after tax in 2016 in line with its dividend policy which has a minimum percentage and a maximum percentage of dividends to be paid to shareholders,” said Mhlanga.

Mhlanga when previously unpacking SEL’s financials for the year ended March 31, 2017 which reflected growth, disclosed that there had been an increase in share price when compared to March 31, 2016. She said dividend income from Swazi MTN increased by 10 per cent from E59 million to E66 million while finance income increased by 63 per cent from E7 million to E11 million. The company secretary explained that finance income comes from investments in bonds, short term loans and fun in money market.

Accrued

When further probed as to what the current declaration of 123 cents per share means to the ordinary shareholders in terms of income accrued from their shares held with SEL; she responded “It is SEL’s policy to declare 99.5 per cent of dividend received from Swazi MTN Limited to its shareholders. Dividend declared by SEL was therefore 99.5 per cent of dividend income from Swazi MTN Limited.” On the basis of the declared dividend, Mhlanga was also asked what the prospects for growth were to which she responded by mentioning that SEL has a diverse portfolio and would continue to look at other investment opportunities to ensure sustainability going forward. “Over and above SEL’s 19 per cent stake as Swazi MTN, It has invested on government bonds, Finance Development Corporation (FINCORP) bonds and Select bonds among others,” Mhlanga explained. On another note, Mhlanga previously assured that to ensure sustainability going forward in relation to the current tough economic trading conditions, SEL would continue to look at other investment opportunities.

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