Stimulus Investments Limited recorded a 54% decline in profit for the financial year ended 28 February 2026 as lower fair value gains from its investment portfolio weighed on earnings despite continued growth across its investee companies.
The Namibia-listed investment company reported profit for the year of N$22.7 million, down from N$49.8 million recorded in 2025.
“Profit before taxation also fell to N$22.7 million from N$49.8 million previously, while operating profit declined by 22% to N$85.3 million,” the company said in its annual report.
Stimulus attributed the weaker earnings mainly to lower fair value gains on its portfolio of subsidiaries and associates, which declined to N$64 million during the year from N$97.7 million in 2025.
The company said its portfolio businesses nevertheless continued to record satisfactory growth in operating profits.
Stimulus holds investments in Cymot Group, Khomas Solar Saver, Neo Paints Group, Plastic Packaging Group, Polyoak Namibia, Walvis Bay Stevedoring and Desert Trade Investments.
“Dividend income from investee companies increased by 45% to N$36.4 million, supported by stronger cash generation from portfolio businesses,” the report noted.
Meanwhile, operating expenses increased by 9.3%, mainly due to the rebasing of asset management fees approved by shareholders in April 2025.
Stimulus said its net assets under management still increased by 9% during the year under review.
The company also sold minority stakes in Cymot Group and Walvis Bay Stevedoring to employee share trusts as part of efforts to support employee participation and long-term succession planning.
Despite the decline in earnings, Stimulus declared a final dividend of N$22.6 million, equivalent to N$4.87 per preference share, up from N$2.83 per share in the previous year.
Looking ahead, the company said projected economic growth in sectors such as construction, mining, wholesale and retail trade could support future portfolio performance.
“Nevertheless, persistent geopolitical tensions, including the conflicts in Ukraine and the Middle East, continue to fuel volatility in global commodity and shipping markets, contributing to higher oil prices and ongoing supply chain disruptions,” the company said.
