Local Business

Somers profit rises to $39.7m

  • Warren McLeland, chairman of Somers Limited (File photograph)

Financial services investment holding company Somers Limited has reported net income of $39.7 million for its third quarter, which ended on June 30.

That was an improvement of 12 per cent for the quarter, and up from $5.8 million for the same period last year.

The company’s net asset value per share is $17.91, which is higher than at it was the beginning of the company’s financial year.

Warren McLeland, chairman of Somers, said: “The value of the company’s investments rebounded markedly in the third quarter as global markets reacted to unprecedented central bank and government stimulus and it is pleasing to highlight that our NAV is back above this year’s opening NAV and more importantly that we were able to report net income of $39.7 million for the quarter.

“Our investee companies continue to deal positively with the fallout from Covid-19 and the majority of the companies’ employees are now working from home. Whilst the resilience in our investee companies’ business models has been pleasing, we are conscious that the recovery is likely to be prolonged and this may well have an impact on some of our investments as global furlough schemes wind down and the full impact of Covid-19 is felt by these relevant economies. However, we are confident that our investments are, in the long run, well placed to create additional value.”

Somers’ largest investment as of the end of June, was $218.3 million in Resimac Group. It also has a $70 million investment in Bermuda Commercial Bank, a $66.2 million investment in Waverton Investment Management Group, and a $32.1 million investment in PCF Group plc. Those four major investments account for 87.5 per cent of Somers’ total investments.

A potential sale of BCB had been progressing earlier this year, but did not happen.

Mr McLeland said: “On August 4, we announced that following the receipt of multiple offers we had terminated the agreement to sell BCB. The company continues to work towards delivering a transaction which will benefit all of Somers and BCB’s stakeholders and we look forward to updating Somers’ shareholders in due course.”

During the quarter, Somers recorded a $21.4 million gain on its investment portfolio. Its total assets increased to $446.6 million, a rise of $23 million since the end of September.