- SBC Limited Group is an investment holding company that provides financial services under Select Limited and is also behind the Malkerns Square Project
- Group revenue increased by 7.3% in 2021 to E333m compared to (2020: E311m)
- However, profit after tax reduced from (2020: E41.2m) to E39.9m in 2021
By Ntokozo Nkambule
SBC Limited Group, an investment holding company listed on the Eswatini Stock Exchange (ESE) has reported a profit after tax of E39.9 million for the financial year ended 31 December 2021. This year’s profit after tax however, is lower than the 2020 financial year when the group reported a profit after tax of E41.2 million.
The Group has a number of entities under its portfolio, which include financial services solutions providers, such as Select Limited and Lesana, a similar brand in Lesotho. SBC Limited Group is also highly invested in property development; the Malkerns Square project falls under their portfolio. The Malkerns Square project comprises of local housing and retail development. Despite the decline in profit after tax, the group believes the results were satisfactory given the COVID-19 pandemic and political unrest in the country. “SBC’s results for the year ending 31 December 2021, reflect that of a resilient, well-diversified, and underlying franchise, impacted by a challenging environment in the jurisdictions we operate in. Whilst 2021 was reflective of recovery phase trading, local governments implemented further Covid-19-related restrictions during this year which negatively impacted the economic activity. Eswatini was further negatively impacted by riots, looting, and civil unrest during quarters two and three of 2021. These restrictions and disruptions are likely to have a lingering adverse impact on the business” notes the group in its report.
On a positive note, the group states that its consumer lending business posted a 15% increase in profits after tax. However, the late completion of the retail centre in Malkerns Square, and phase two of the residential property development coupled with lower than anticipated initial residential occupancy, slightly eroded the profit after tax. Despite this setback, the group notes that it will continue investing in housing. Malkerns Square has 147 completed rental units, and has witnessed a 33% increase in occupancy rate. The retail property development on the other hand was fully occupied in 2021, with long-term leases from Pick n Pay, KFC, and West Pack.