SEL DECLARES E9.25M FINAL DIVIDEND AMID GROWTH

MBABANE – Swazi Empowerment Limited (SEL), a prominent investment company listed on the Eswatini Stock Exchange (ESE), has declared a final dividend of E9.25 million, equivalent to 50 cents per share. This announcement comes on the heels of the company’s recently released interim financial results, reflecting a period of robust performance. According to the official notice, the dividend is payable to ordinary shareholders registered in the company’s share register as of the close of business on February 14, 2025. The payment is scheduled to be made no later than February 21, 2025.

Applicable taxes, including normal and withholding tax, will be deducted from dividends paid to local and non-resident shareholders, respectively.It is worth noting that SEL’s interim financial statements for the period ending September 30, 2024, indicated a strong financial position. The company reported a significant increase in revenue compared to the same period in the previous year, driven by strategic investments and improved market conditions. Net profit margins had improved, reflecting efficient cost management and successful investment strategies.

Assets

The total assets of the company have expanded, underscoring SEL’s growing influence in the investment sector. The company reported a remarkable 59 per cent increase in profit after tax for the six-month period ended September 30, 2024. The profit rose to E4.69 million compared to E2.95 million in the same period in 2023, signaling a strong recovery driven by improved revenue and prudent financial management. SEL’s revenue for the six months reached E4.66 million, a significant improvement compared to zero revenue during the same period in 2023.

Attributed

The company attributed this growth to strategic investments and operational improvements. Gross profit climbed to E3.64 million, reversing a gross loss of E1.19 million recorded in the previous year Finance income rose by 19.7 per cent to E6.3 million from E5.3 million in 2023, supported by returns on investments. However, finance costs increased to E5.2 million, reflecting the impact of loan servicing and higher interest rates.  Despite these expenses, profit before taxation grew by 15.6 per cent, reaching E4.7 million compared to E4.1 million in 2023.The profit after tax increase of 59 per cent was achieved despite the higher finance costs, demonstrating SEL’s ability to maintain profitability under challenging economic conditions.

The total comprehensive income, which includes profit after tax and other income from investment revaluations, dipped slightly to E59.1 million, a 4 per cent decrease from E61.6 million in 2023. This was mainly due to a reduction in other comprehensive income, which declined to E54.4 million from E58.6 million. Distributions to shareholders totalled E18.3 million, down from E24.1 million in 2023, as the company balanced rewarding shareholders with retaining earnings to support future growth. SEL’s total assets surged by 16.7 per cent to E820.6 million from E703.0 million in 2023, underpinned by a rise in non-current assets to E712.3 million from E602.3 million.

Investments in Swazi MTN Limited and other financial instruments contributed to this growth. The company’s liquidity position remained robust, with cash and cash equivalents at E56.2 million compared to E13.9 million in the same period last year. Total equity increased to E722.5 million from E702.2 million, reflecting strong financial stability and consistent value creation for shareholders. SEL’s portfolio of investments continues to deliver stable returns.

The company holds a 19 per cent equity stake in Swazi MTN Limited, a 4.92 per cent stake in First National Bank of Eswatini Limited, as well as bonds from Select Limited and Eswatini Development Finance Corporation. These positive results have reinforced investor confidence, as evidenced by the stable performance of SEL’s share price on the ESE. The declared dividend and favorable interim financial results underscore SEL’s commitment to delivering value to its shareholders. The company’s strategic focus on diversified investments continues to yield positive outcomes, positioning SEL for sustained growth in the Eswatini market.

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