Namibia: Nictus Hooked On 12 Cents Dividend

AUAS Motors owners Nictus Holdings Limited late last week announced it will again pay out a dividend of 12 cents per share for the 2020 financial year.

The dividend will be paid out of retained earnings around 24 August, the company said, and is equivalent to what the company distributed last year, the year before (2018) and in 2017.

In 2016, Nictus distributed 18 cents per share - the highest in its listing history.

The consistent dividend over the four years, however, shows a slightly better dividend yield of 7,5% for 2020 and 2019 compared to 6,7% in 2018.

A dividend yield is equal to a dividend expressed as a percentage of current share prices of a company, and a higher dividend yield means a better return on investments in a company.

It mainly increases with a fall in share prices.

This dividend, expected to be paid out of returned earnings, means Nictus will reduce their reserves by around N$6,4 million - dropping it to N$86 million from the N$93 million recorded for the year ending 31 March 2020.

Financial statements for 2020 as released last week Friday show the company earned revenue of N$631 million, a drop from N$677 million earned last year.

Not only sales revenue decreased, but also other inflows such as investment income.

This was also matched against a decrease in costs, leading to the company posting a N$7,3 million profit from N$7,1 million over the same period last year.

The group's assets have now reached N$2 billion - much of it being current assets (N$1,6 billion) from its insurance business.

Nictus as a group has hands in retail, insurance, real estate as well as the management of companies. This plays out in its subsidiaries - Trentyre Namibia, Auas Motors, Nictus Furnishers, as well as Hakos Capital Finance.

Nictus, through Auas Motors, recently also became a licensed dealer for Suzuki.

Of the four segments, only the insurance and finance segment made a profit (N$31 million), while the others recorded losses.

The retail segment recorded a N$12 million loss, real estate N$1,2 million and the head office N$9,9 million.

Without the insurance and finance segment, the group would have been running a consolidated loss of at least N$23 million. The insurance segment has for long been a lifeline.

The group had a solid cash position of N$473 million at the end of March and paid N$2,2 million in taxes.

On Covid-19, the company said steps have been taken to strengthen the group's financial position and maintain financial liquidity and flexibility, including reviewing operating expenses, evaluating merchandise purchases and reducing capital expenditure.

"Despite the uncertainty caused by the pandemic, the board believes that preventative steps taken by management to mitigate the uncertainty will result in minimising the potential severity the pandemic may have on the group," the entity said.

Nictus shares closed at N$1,60 last Friday, and the last date for trading to partake in the dividend is 14 August.

Financials are to be discussed at the company's annual general meeting, scheduled for 27 August.

No one bought or sold Nictus shares last week on the Namibian Stock Exchange.

The abridged 2020 financial statements are available on Nictus' website.

Email: [email protected] | Twitter: @Lasarus_A

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