SEL PROFITS DROP BY 28%

MBABANE – Swaziland Empowerment Limited’s (SEL) profit after tax decreased by 28 per cent to E52.8 million in 2018 from E73.1 million in 2017.

Unpacking financial statements for the year ended March 31, 2018; SEL Company Secretary Makhosazana Mhlanga explained that this decrease was mainly due to the 30 per cent decrease in dividends received during the year under review.

When asked to provide an analysis of the dividends declared in terms of whether it was a healthy dividend and what had influenced it, Mhlanga explained that SEL is a 19 per cent shareholder at Swazi MTN Limited and dividends received were dividends declared and paid by Swazi MTN Limited in line with Swazi MTN’s dividend policy.

“Though dividend declined slightly, they are still in line with Swazi MTN’s dividend policy,” Mhlanga emphasised. 
When further probed to explain what had influenced the company’s financial position, Mhlanga said it had been noted from review of the company’s statement of financial position there had been a significant increase in total assets of the company from E573 576 164 in 2017 to E 602 424 294 in 2018.

She said that was mainly as a result of a significant increase in the company’s investments.  Mhlanga disclosed that investments increased from E474 922 496 in 2017 to E557 059 148. 

“SEL’s closing price on the Swaziland Stock Exchange was E32.55 per share in 2018 compared to E 31 in 2017,” she said.

Quizzed as to how SEL seeks to enhance profitability going forward, Mhlanga said SEL would continue to look at other investment opportunities to ensure sustainability going forward.
 “Over and above SEL’s 19 per cent stake at Swazi MTN, It has invested on government bonds, Fincorp bonds, Select bonds among others,” among others.

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