SEL EARNINGS PER SHARE UP 16%

MBABANE - The performance of equities is imperative to investors, as equity funds offer investors a diversified investment option typically for a minimum initial investment amount.

The recently released Swazi Empowerment Limited (SEL) audited financials for the year ended March 31, 2022 have disclosed that earnings per share (cents) increased from 322 to 375. SEL said the increase of 16.46 per cent and the overall performance were expected to remain consistent over the next reporting period. An increase of 28 per cent was also noticeable in the dividend price per share (cents), as they hiked from 253 cent to 324 cent. The SEL share price, however, has remained constant in the current reporting period. The publicly traded company revenues increased exponentially in the current reporting period, they expanded to E62 290 000 from E57 085 000 in 2021.

Profit

SEL operating profit hiked from E54 085 000 in 2021 to E60 297 000 in 2020, while profit also increased from E59 560 000 to E69 411 000 in 2022. It was also noticed that the overall comprehensive income declined to E58 229 000 from E65 757 000 in 2021. SEL said the principal activity of the company during the year under review remained that of an investment holding company. The company’s investments comprises of a 19 per cent equity stake in Swazi MTN Limited, Select Bonds (SML 807 and 815), Eswatini Development Finance Corporation Bond FIN307 and Swaziland Building Society Permanent Shares. They said surplus funds continue to be invested in Money Market type investments with reputable financial institutions. “The decrease in comprehensive income was due to the decrease in the fair value adjustment of the unlisted investment,” mentioned SEL in the report.

Increased

They added that the increase in profit before tax was due to the increased dividends received from Swazi MTN Limited, which further resulted in the increase in earnings per share and dividends per share. The financial statements for the year ended 31 March 2022 had been audited by SNG Grant Thornton Chartered Accountants. EL further announced that the annual general meeting of members of Swazi Empowerment Limited will be held at the Royal Villas in Ezulwini on October 28, 2022. The all share index of Swazi Empowerment Limited (SEL) recorded a 2.7 per cent increase. SEL had a market capitalisation of E666 000 000 which has since increased to E684500. Eswatini Stock Exchange (ESE) overall market capitalisation remain stagnant at about E4 293 186 644.

Announced

Dividends now paid directly to bank accounts ESE announced that dividends from local companies listed in their markets should be paid directly to client’s bank accounts. ESE said this was in line with the Central Bank of Eswatini’s media statement issued July 20 2021, announcing the elimination of cheques as a mode of payment effective from January 2022. A majority of investors in Eswatini both as individuals and companies use the Buy and Hold Strategy when buying stock on public listed companies under ESE. They seek out undervalued stocks and buy them with the intent to hold on to these positions for months, if not years with the intent to benefit from the company’s dividends. This was mentioned by ESE analysis department in an interview with this publication.

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