SEL DECLARES E23M DIVIDEND

MBABANE – The Swaziland Empowerment Limited (SEL) continues to show signs of growth by declaring a dividend of over E23 million.

By order of the Board of Directors  Company Secretary Makhosazana Mhlanga announced that an interim dividend of E23 865 000 comprising 129 cents per share, had been declared to ordinary shareholders registered as such in the company’s share register at the close of business on or before March 7, 2018.
Mhlanga said payment of the dividend was expected to be no later than March 14, 2018.

“Normal and withholding tax will be deducted from dividends paid to local shareholders and non-resident shareholders respectively where applicable,” Mhlanga explained. 

Asked what the declared dividends mean in terms of the company’s profitability, Mhlanga explained that; “The dividend received is from SEL’s investment as MTN and dependent on MTN results. Other income for SEL comes from interest from government bonds, Select bonds and Finance Development Corporation (FINCORP) bonds.”

SEL which has a 19 per cent equity stake in Swazi MTN, Swaziland Post and Telecommunications Corporation (SPTC) has 41 per cent; MTN International has 30 per cent while an Esteemed Shareholder holds 10 per cent. 

Probed as to how SEL intends to ensure continued positive growth, Mhlanga said they would continue seeking other investment opportunities to ensure portfolio gets diversified.

Quizzed as to what were the company’s projections in terms of profitability following the declared dividends, Mhlanga said it was difficult to say as dividend received was dependent on how much MTN declares and their results.

“The only source of income for SEL is dividends from MTN (significant portion) interest from government bonds, Select bonds, Fincorp bonds and interest from financial institutions,” Mhlanga said.

It should be mentioned that SEL shareholders dividend income from Swazi MTN increased by 10 per cent from E59 million to E66 million during the financial year ended March 31, 2017.
This effectively meant SEL realised an E7 million dividend income increase during this period under review.  

The financials reflected that SEL had posted financials that showed positive growth and improved dividends, the share price increased from 2500 cents in 2016 to 3100 cents in 2017.

Mhlanga previously Mhlanga also affirmed that had been an increase in share price when compared March 31, 2016.
“This is as reflected in other comprehensive income. Net change in fair value of available for sale financial asset increased from E18 525 000 to E91 356 000. Dividend income from Swazi MTN increased by 10 per cent from E59 million to E66 million,” explained Mhlanga.

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