Namibia Asset Management Limited (NAM) incurred a drop in operating profit for the six months ended 31 March 2022.
According to a review of interim results for the period NAM realised an operating profit of N$7 803 828 down from N$8 591 699 realised over the same period in 2021.
The company however increased its assets under management by 2% for the period under review to N$19.0 billion from N$18.6 billion in September 2021 and N$27.9 billion in March 2021.
The basic earnings per share also dropped to 3.73 cents from 4.42 earned at the end of March 2021 as did headline earnings per share to 3.73 cents from 4.42 cents n the same period.
The net asset value per share also dropped to 12.14 cents as of March 2022 from 13.02 cents in March 2021 for an issued share capital of 200 million.
NAM still trading at N$0.67, with only one major trade done this year, 953 000 shares traded on 20 April.
According to the company, the macroeconomic environment remains uncertain and unpredictable with an escalating conflict in Europe, coupled with material and long-lasting global political and economic repercussions.
“Global central banks have shifted from their long held accommodative stance in
order to contain rampant inflation, significantly changing the medium-term prospects for interest rates and the cost of capital,” said NAM in a statement.
Capital markets have responded to this uncertainty through significant declines, with many key markets already in a technical bear market, which is defined as a decline of more than 20% from its peak.
“At an individual stock level, the moves have been even more extreme, with many global
share prices down in excess of 50%. It is important to bear in mind that periods of intense volatility typically create the most fertile ground for significant value-creating investment opportunities.
“As active, long-term stock pickers, we are incredibly excited by the opportunities the market is presenting us, both locally and globally. This is reflected in our portfolios across all our strategies.
“As always, we remain focused on actively managing our clients’ portfolios to ensure we deliver superior long-term investment outcomes,” said the board in the statement.
The company made changes to its board of directors by appointing Evat Kandongo and Silke Hornung as new independent non-executive directors.
Llewellyn Smith also replaced Aimee Rhoda, who retired from the board at the end of December 2021.
