MMA loans

Paratus declares another 10 cent dividend

PARATUS Namibia Holdings Limited has declared a profit of N$25 million and will pay its shareholders a final dividend of 10 cents per share for the financial year 2022.

This will be the fourth 10 cent dividend, bringing the annual dividend to 20 cents per share.

This is in line with revised financial statements released this week, which show the group achieved consolidated revenue of just under N$400 million.

This is an impressive jump from the N$340 million earned in 2021, with management citing the 15% jump reflects the fact that operating companies are well positioned to increase revenue due to the growing demand for a reliable Internet.

Financial statements for the year ending June 30 show operating companies continue to invest in infrastructure, driving cash flow to an overdraft of N$10 million.

Cash spent on investing activities amounted to N$123 million, but much of the cash flow is drained by the interest portion of the loans the group has taken out.

Some N$13 million was paid as interest on loans for the year to the tune of N$200 million – raised on the N$1 billion bond listed on the Namibian Stock Exchange.

This month, the group raised an additional N$130 million on the same bond.

The group, part-owned by Capricorn Group Limited, has an asset base of N$996 million and is expected to exceed the N$1 billion asset base in its 2023 financial year.

Much of the assets are locked in physical assets at N$614 million, which jumped with the completion of the recently inaugurated data center.

The directors’ comment is that the group has spent N$282 million on infrastructure, and the board has approved some N$280 million to be spent in the 2023 financial year. This amount would come from its own resources and of the 130 million Namibian dollars that have already been raised on the stock exchange.

Paratus started this week at 12.99 Namibian dollars per share and the last day to participate in the dividend is October 21, 2022, and payment will take place on November 11, 2022.

Full results are available on the company’s website.

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