AS AT

DECEMBER 31, 2018

Sygnus Credit Investments Limited

Unaudited Results for the 6 Months Ended December 31, 2018

Castries, St Lucia | Wednesday, February 13, 2019

Sygnus Credit Investments Limited | Unaudited Results for the 6 Months Ended December 31, 2018

The Board of Directors of Sygnus Credit Investments Ltd (“SCI”) is pleased to report its unaudited financial statements for

the six months ended December 31, 2018.

MANAGEMENT DISCUSSION AND ANALYSIS

Results of Operations

Sygnus Credit Investments Limited reported a quarterly record for net profit, total investment income and net investment

income for the second quarter ended December 31, 2018 (“Q2 2018”), as it widened its regional private credit investment

footprint.

SCI’s core revenue, or total investment income, grew by 165.7% or US$543.9 thousand to a record US$872.2 thousand for

Q2 2018. This compares with US$328.2 thousand reported for the second quarter ended December 31, 2017 (“Q2 2017”). In

the 6 months ending December 31, 2018 (“6 Month 2018”), total investment income grew by 198.2% or US$992.3 thousand

to a record US$1,492.8 thousand. This compares with US$500.6 thousand for the 6 months ended December 31, 2017 (“6

Month 2017”). The performance was driven by higher interest income from a larger portfolio of private credit investments.

Net investment income, which represents SCI’s core earnings, grew by 123.4% or US$348.5 thousand to a record US$630.9

thousand for Q2 2018, versus US$282.4 thousand reported for Q2 2017. In the 6 months ending December 31, 2018, net

investment income grew by 148.1% or US$611.7 thousand to a record US$1,024.9 thousand, versus US$413.1 thousand for

the similar period in 2017.

Net profit attributable to shareholders increased by 87.1% or US$607.9 thousand to a record US$1,306.1 thousand for Q2

2018, versus US$698.3 thousand for Q2 2017. Earnings per share was 0.37 US cents for Q2 2018 vs 0.92 US cents for Q2 2017

due to additional shares issued

during an initial public offering in

June 2018. SCI’s 6 Month 2018 net

profit increased by 33.8% or

US$239.4 thousand to US$947.8

thousand (0.27 US cents per

share), versus the US$708.4

thousand (0.94 US cents per share)

reported for the similar period in

2017.

172,331

328,237 327,278 366,484

620,674

872,155

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Jul - Sep, 2017 Oct - Dec, 2017 Jan - Mar, 2018 Apr - Jun, 2018 Jul - Sep, 2018 Oct - Dec, 2018

SCI Quarterly Total Investment Income (US$)

Q2 Dec 2018 Q2 Dec 2017 6 Mth Dec 2018 6 Mth Dec 2017 FY Jun 2018

Summary Results of Operations US$ US$ US$ US$ U$

Total Investment Income 872,155 328,236 1,492,829 500,567 1,194,330

Total Operating Expenses 241,278 45,859 467,976 87,418 364,914

Net Investment Income 630,877 282,377 1,024,853 413,149 829,416

Fair Value Gains 19,034 0 33,904 0 644,326

Net Foreign Exchange Gain (Loss) 683,088 415,874 (60,509) 295,244 (49,995)

Less Provision for Expected Credit Losses 26,885 0 50,495 0 0

Net Income / (Loss) before Tax 1,306,114 698,251 947,753 708,393 1,423,747

Taxation Charge 0 0 0

Profit Attributable to Shareholders 1,306,114 698,251 947,753 708,393 1,423,747

Other Comprehensive Income:

Unrealized Gains (Loss) 0 (7,543) 0 280,695 87,503

Total Comprehensive Income 1,306,114 690,708 947,753 989,088 1,511,250

Earnings Per Share 0.37¢ 0.92¢ 0.27¢ 0.94¢ 0.9¢

Net Investment Income per Share 0.18¢ 0.37¢ 0.29¢ 0.55¢ 0.5¢

Sygnus Credit Investments Limited

Unaudited Results for the 6 Months Ended December 31, 2018

Total Operating Expenses

Total operating expenses increased to US$241.3 thousand for Q2 2018 versus US$45.9 thousand for Q2 2017, and US$468.0

thousand for 6 Month 2018 versus US$87.4 thousand for 6 Month 2017. The Q2 2017 and 6 Month 2017 reported numbers

are substantially lower than Q2 2018 and 6 Month 2018 respectively, as management fees were not charged for the first two

quarters of 2017. Management fees were 73% and 75% of Q2 2018 and 6 Month 2018 operating expenses respectively.

Excluding management fees, SCI’s Q2 2018 operating expenses were US$65.6 thousand, an increase of 43.1% over Q2 2017,

and 6 Month 2018 was US$118.7 thousand, an increase of 35.7% over the similar period in 2017.

Growth in Net Investment Income

The growth in Q2 2018 net investment income reflected a larger increase in total investment income of US$543.9 thousand,

relative to an increase of US$195.4 thousand in total operating expenses. Similarly, for 6 Month 2018, growth in total

investment income of US$992.3 thousand, outstripped the increase in operating expenses of US$380.6 thousand. Interest

income was 98% of total investment income, which is comprised of interest income from investments in private credit

instruments (PCI) used to finance medium-sized firms, and interest income from undeployed cash held in short term

investment instruments.

Fair Value Gains

Fair value gains of US$19.0 thousand and US$33.9 thousand for Q2 2018 and 6 Month 2018 respectively, were driven by

investments in two Portfolio Companies with profit sharing upside, in addition to regular investment income that us earned.

There were no fair value gains for the similar periods in 2017.

Net Foreign Exchange Gain / Loss

Net foreign exchange gain of US$683.1 thousand for Q2 2018 was greater than the gain of US$415.9 thousand reported for

Q2 2017. This resulted from a combination of SCI having a larger portfolio in Q2 2018 vs Q2 2017, along with differences in

the exchange rate movement in Q2 2018 vs Q2 2017. SCI reported a 6 Month 2018 net foreign exchange loss of US$60.5

thousand versus a 6 Month 2017 net foreign exchange gain of US$295,244. Thirty five percent of SCI’s assets were

denominated in Jamaican dollars at the end of December 2018.

Provision for Expected Credit Losses

SCI adopted IFRS 9 from July 1, 2018, which requires the recognition of an upfront charge for debt investments carried at

amortized cost, using a forward-looking model or expected credit loss (ECL). The ECL charge is a non-cash item and represents

SCI’s current recognition of ECL charges, which was US$26.9 thousand for Q2 2018 and US$50.5 thousand for 6 Month 2018.

Under the ECL transition method chosen, comparative information for the similar period last year is not restated. SCI does

not have any non-performing or impaired private credit investments.

Total Revenues and Total Expenses

SCI’s total revenues are comprised of core revenues, or total investment income, plus the non-core revenue items comprising

fair value gains and net foreign exchange gains. Total revenues were US$1,574.3 thousand and US$1,526.7 thousand for Q2

2018 and 6 Month 2018 respectively, versus US$744.1 thousand and US$795.8 thousand for Q2 2017 and 6 Month 2017

respectively. Similarly, SCI’s total expenses are comprised of operating expenses, net foreign exchange loss, fair value loss

and provision for expected credit losses. Total expenses were US$268.2 thousand and US$579.0 thousand for Q2 2018 and 6

Month 2018 respectively, versus US$45.9 thousand and US$87.4 thousand for Q2 2017 and 6 Month 2017 respectively. Non-

core revenues and non-core expenses may fluctuate significantly.

Efficiency Ratio

SCI’s core activities generated an efficiency ratio of 27.5% measured by total operating expenses to total investment income

for Q2 2018, versus 36.5% for the quarter ending September 30, 2018 (“Q1 2018”) and 42.7% for the quarter ending June 30,

2018 (“Q4 2017”).

Average Annualized Return on Equity

SCI’s average annualized return on equity was 14.3% and 5.1% for Q2 2018 and 6 Month 2018 respectively, versus 17.1% and

9.3% for Q2 2017 and 6 Month 2017 respectively.

Sygnus Credit Investments Limited

Unaudited Results for the 6 Months Ended December 31, 2018

Private Credit Investment (PCI) Activity

At the end of Q2 2018, SCI’s investment in Portfolio Companies grew by 141.8% to US$27.9 million versus US$11.6 million in

Q2 2017. The number of Portfolio Company investments increased four-fold to 16 in Q2 2018 from 4 in Q2 2017.

New Portfolio Company Investment Commitments

SCI made six new private credit investment commitments across the Caribbean valued at US$9.8 million in Q2 2018, versus

one new commitment valued at US$1.0 million in Q2 2017. The new investments were originated in the manufacturing,

distribution and telecommunication service industries in leading firms with strong growth and free cash flow generation. SCI

expanded its regional footprint during the quarter, with three of the six new investments in Portfolio Companies spanning

the wider Caribbean region, including Aruba, Bonaire, Curacao (ABC Islands) and Barbados.

Average PCI Velocity and Average Investment per Portfolio Company

Since inception, SCI’s average velocity of net investments (deployment plus repayments) per quarter was US$4.5 million as

at Q2 2018 versus US$5.6 million as at Q2 2017. The average investment per Portfolio Company was US$1.7 million as at Q2

2018 down from US$2.9 million as at Q2 2017.

Weighted Average PCI Tenor and PCI Yield

At the end of Q2 2018, the weighted average tenor of Portfolio Company investments declined to 2.3 years versus 3.0 years

at the end of Q2 2017. The weighted average yield on SCI’s private credit investments increased to 11.8% in Q2 2018 versus

10.8% in Q2 2017.

Available Dry Powder

Dry Powder available to invest in new private credit opportunities across the Caribbean was US$9.4 million at the end of Q2

2018 versus US$18.2 million at the end of Q1 2018. For the corresponding period in 2017, available Dry Powder was US$4.9

million.

Portfolio Company Allocation

SCI’s Portfolio Companies were diversified across seven major industries and four regions across the Caribbean. During Q2

2018, telecommunication services became the newest industry allocation, with the top three industry allocations being

Distribution (25%), Manufacturing (19%) and Energy (19%). Excluding Dry Powder (25% of Portfolio), 72% of SCI’s portfolio

was allocated to Portfolio Companies from Jamaica, with 18% to Barbados, 6% to the ABC Islands and 4% to St Lucia.

Q2 Dec 2018 Q2 Dec 2017

Summary of Investment Activity US$ US$

Total Assets 38,022,153 16,702,788

Fair Value of Investment in Portfolio Companies 27,948,599 11,557,694

New Portfolio Company Commitments During Q2 9,829,433 1,000,000

Number of Portfolio Company Investments Exited During Q2 Nil Nil

Dry Powder to be Deployed 9,359,128 4,866,654

Number of Portfolio Company Investments (#) 16 4

Average Velocity of Net Investments Per Quarter 4,501,614 5,561,699

Average Investment per Portfolio Company 1,746,787 2,889,424

Weighted Average Term of Portfolio Company Investments (years) 2.3 3.0

Weighted Average Yield on Portfolio Companies (%) 11.8% 10.8%

Non-performing Portfolio Company Investments Nil Nil

Sygnus Credit Investments Limited

Unaudited Results for the 6 Months Ended December 31, 2018

Balance Sheet

At the end of Q2 2018, SCI had US$38.0 million in total assets, up US$21.3 million or 127.6% over the similar period last year,

mainly comprising US$27.9 million in 16 Portfolio Companies and US$9.4 million in Dry Powder. Of the US$27.9 million in

Portfolio Companies, US$18.8 million (67%) were carried at amortized cost, US$7.4 million (26%) carried at fair value through

profit and loss and US$1.7 million (6%) in finance lease are carried at amortized cost.

SCI had liabilities of US$0.9 million, versus US$0.05 million for the similar period in 2017. These liabilities comprised of US$0.6

million in undrawn investment disbursements and US$0.2 million in management fees due to the investment manager. SCI

had zero debt.

Shareholders’ Equity

Total shareholders’ equity was US$37.1 million at the end of Q2 2018, up 122.7% or US$20.4 million versus US$16.7 million

at the end of Q2 2017. At the end of Q2 2018, retained earnings was US$2.0 million comprising of US$1.4 million profit for

the year ended June 30, 2018, plus US$0.09 million IFRS 9 reclassification from available-for-sale to fair value through profit

& loss, plus the current profit for 6 Month 2018 of US$0.9 million, less dividends paid of US$0.5 million in October 2018. SCI’s

book value per share increased to US$0.1060 at the end of Q2 2018 from US$0.1022 at the end of Q1 2018 based on

350,087,563 shares outstanding.

Economic Snapshot

The Investment Advisor to SCI, Sygnus Capital Limited, continued to originate transactions across several Caribbean countries,

with the majority of its originations occurring in Jamaica, with 72% of its Portfolio Companies allocated to that country.

Following the end of Q2 2018, credit rating agency Fitch upgraded Jamaica’s sovereign ratings from B to B+, and additional

rating upgrades are expected from the other major rating agencies in upcoming quarters. Jamaica remains one of the

strongest economies within the region, as despite its low average GDP < 2.0% and relatively high crime rate, the country

continues to enjoy its best economic backdrop in nearly half a century with a fiscal surplus of ~0.2% of GDP, low policy interest

rates of 1.75%, low average inflation below 4%, debt/GDP ratio below 100% for the first time in over a decade and a half, and

a stable current account deficit below 5% of GDP.

In addition, the authorities are in the process of implementing an independent fiscal council and making the central bank

independent. As a result of these confluence of factors, economic activity amongst middle market companies in Jamaica

continues to accelerate as firms seek to execute projects or expand their businesses for growth.

During Q2 2018, there continued to be substantial foreign exchange volatility between the Jamaican and US currencies, with

the local exchange rate continues to experience its most volatile two-way movement in more than two decades, as the central

bank transitions to an inflation targeting regime.

Distribution, 25%

Energy, 19%

Financial

Services, 2%Hospitality, 8%

Manufacturing,

19%

Mining and

Quarrying, 9%

Telecommunicati

on Services, 18%

Investment Allocation Ex-Dry Powder: Dec. 31, 2018

ABC Islands

6%

Barbados

18%

Jamaica

72%

St. Lucia

4%

PCI Country Allocation

SYGNUS CREDIT INVESTMENTS LIMITED

Statement of Financial Position

Unaudited

December 31, 2018 / (Expressed in United States dollars)

Unaudited Audited Audited

(Restated)

As at As at As at

31-Dec-18 31-Dec-17 30-Jun-18

ASSETS

Cash and cash equivalents 1,812,095 226,809 400,259

Securities purchased under resale agreements 7,547,033 4,639,845 19,883,276

Interest receivable 650,492 253,440 * 229,494

Other receivables 721 - 788,625

Due from related companies 63,213 25,000 -

Financial lease receivable 1,739,162 - 498,960

Investments 26,209,437 11,557,694 15,203,964

Total Assets 38,022,153 16,702,788 37,004,578

LIABILITIES

Accounts payable and accrued liabilities 759,495 30,362 201,779

Due to related companies 163,769 16,000 183,876

Total Liabilities 923,264 46,362 385,655

SHAREHOLDERS’ EQUITY

Share capital 35,107,673 15,667,338 * 35,107,673

Fair value reserve - 280,695 87,503

Retained earnings 1,991,216 708,393 * 1,423,747

Total Shareholders’ Equity 37,098,889 16,656,426 36,618,923

Total Liabilities and Shareholders’ Equity 38,022,153 16,702,788 37,004,578

Director

Dr. Ike Johnson

Director

Ian Williams

*-Restated based on year end audited financial statements

SYGNUS CREDIT INVESTMENTS LIMITED Statement of Profit or Loss and Other Comprehensive Income Unaudited Six Months Ended December 31, 2018 / (Expressed in United States dollars)

Audited (Restated) Audited

Quarter Ended

Quarter Ended

Six Months Ended

Six Months Ended

Year Ended

Note 31-Dec-18 31-Dec-17 31-Dec-18 31-Dec-17 30-Jun-18 Income

Interest income 856,155 320,736 1,461,884 493,068 1,170,917

Fair value gains 19,034 - 33,904 - 644,326

Participation fees 16,000 7,500 30,944 7,500 23,413 Net foreign exchange gains 683,088 415,874 - 295,243 * -

1,574,277 744,110 1,526,732 795,811 1,838,656

Expenses

Accounting fees 4,145 5,073 8,999 10,545 20,833

Advertising and promotion 1,505 - 3,127 - 5,343

Audit fees and expenses 3,750 11,250 8,037 20,000 48,435

Bank charges 1,939 447 3,350 2,009 3,098

Directors' fees and related expenses 7,623 10,803 15,246 10,803 29,225

Other expenses 16,162 - 33,589 - 2,142

Irrecoverable withholding tax 23,166 3,898 35,264 11,504 25,317

Management fees 175,665 - 349,307 - 182,368

Net foreign exchange loss - - 60,509 - 49,995

Provision for expected credit losses 26,885 - 50,495 - -

Professional fees 5,912 12,000 8,311 21,360 32,572

Registration fees 1,411 2,388 2,745 11,197 15,581

268,163 45,859 578,979 87,418 414,909 Profit for the period / year 1,306,114 698,251 947,753 708,393 * 1,423,747 Other comprehensive income

Items that are or may be subsequently reclassified to profit or loss:

Unrealised gain on available-for-sale investments,

being total other comprehensive expense - (7,543) - 280,695 87,503 Total other comprehensive income - (7,543) - 280,695 87,503 Total comprehensive income 1,306,114 690,708 947,753 989,088 1,511,250 Earnings per stock unit 0.37¢ 0.92¢ 0.27¢ 0.94¢ 0.9¢

*-Restated based on year end audited financial statements

SYGNUS CREDIT INVESTMENTS LIMITED

Statement of Changes in Equity

Unaudited

Six Months Ended December 31, 2018 / (Expressed in United States dollars)

Share

Fair value Retained

capital reserve earnings Total

Transaction with owners:

Issue of ordinary shares 15,667,338 - - 15,667,338

Total comprehensive income: Items that are or may be subsequently reclassified to profit or loss: Unrealised gains on available-for-sale investments - 280,695 - 280,695

Profit for the period - - 708,393 * 708,393

Total comprehensive income for the period - 280,695 708,393 989,088

Balances as at December 31, 2017 15,667,338 280,695 708,393 16,656,426

Paid in capital 19,440,335 - - 19,440,335

Total comprehensive income: Items that are or may be subsequently reclassified to profit or loss: - (193,192) (193,192)

Unrealised gains on available-for-sale investments

Net profit for the period - - 715,354 715,354

Balances as at June 30, 2018 35,107,673 87,503 1,423,747 36,618,923

Total comprehensive income / (expense): IFRS 9 Impact:

Reclassify investments from available-for-sale to fair value through profit or loss - (87,503) 87,503 -

Profit for the period - - 947,753 947,753

Total comprehensive (expense) / income for the period - (87,503) 1,035,256 947,753

Transactions with owners, recorded directly in equity Dividends declared, being total distributions to owners - - (467,787) (467,787)

Balances as at December 31, 2018 35,107,673 - 1,991,216 37,098,889

*-Restated based on year end audited financial statements

SYGNUS CREDIT INVESTMENTS LIMITED

Statement of Cash Flows

Unaudited

Six Months Ended December 31, 2018 / (Expressed in United States dollars)

Audited (Restated) Audited

Six Months Ended

Six Months Ended Year Ended

CASH FLOWS FROM OPERATING ACTIVITIES: 31-Dec-18 31-Dec-17 30-Jun-18

Profit for the period 947,753 708,393 * 1,423,747

Adjustments for: Interest income (1,461,884) (493,067) (1,170,917) Provision for expected credit losses on financial assets 50,495 - - Fair value gains (33,904) - (644,326)

(497,540) 215,326 (391,496) Decrease / (increase) in operating assets:

Other receivables 787,905 - (788,625) Due from related parties (63,213) (25,000) -

Increase / (decrease) in operating liabilities: Accounts payable and other accrued liabilities 36,233 30,363 201,779 Due to related companies (20,107) 16,000 183,876

Net cash provided by / (used in) operating activities 243,278 236,689 (794,466)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of investments (11,774,251) (11,276,999) (15,155,030) Encashment of investments 1,027,419 - 682,895 Finance lease receivable (993,953) - (498,960) Purchase of securities purchased under resale agreements (11,307,739) (11,092,393) (31,388,356)

Encashment of securities purchased under resale agreements 23,643,982 6,452,547 11,505,080

Investment income received 1,040,887 239,627 941,423

Net cash provided by / (used in) investing activities 1,636,345 (15,677,218) (33,912,948)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends declared (467,787) - - Proceeds from the issuance of shares - 15,975,527 36,196,607 Transaction costs associated with shares issued - (308,189) (1,088,934)

Net cash (used in) / provided by financing activities (467,787) 15,667,338 35,107,673

NET INCREASE IN CASH AND CASH EQUIVALENTS 1,411,836 226,809 400,259 CASH AND CASH EQUIVALENTS - Beginning of the period 400,259 - -

CASH AND CASH EQUIVALENTS - End of the period 1,812,095 226,809 400,259

REPRESENTED BY: Cash and cash equivalents 1,812,095 226,809 400,259

1,812,095 226,809 400,259

*-Restated based on year end audited financial statements

SYGNUS CREDIT INVESTMENTS LIMITED

Notes to the Financial Statements

Unaudited

Six Months Ended December 31, 2018 / (Expressed in United States dollars)

1. IDENTIFICATION

Sygnus Credit Investments Limited (the “Company") was incorporated in Saint Lucia on January 13, 2017 under the International Business Companies Act as an International Business Company ("IBC"). The Company is domiciled in Saint Lucia with its registered office at McNamara Corporate Services Inc., 20 Micoud Street, Castries, Saint Lucia.

The Company is a specialty credit investment company, dedicated to providing non-traditional financing to medium-sized firms across the Caribbean region. Non-traditional forms of credit are more customized and flexible than traditional financing. The Company offers an alternative channel through which medium-sized firms, which are typically underserved by traditional forms of financing, can access capital to drive their expansion and growth.

The investment portfolio of the Company is managed and administered by Sygnus Capital Management Limited ("SCM"), a related company incorporated in the Cayman Islands under the Cayman Companies Act (the "Act") and registered with the Cayman Islands Monetary Authority ("CIMA") as an Exempt Investment Management Company.

2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

(a) Statement of compliance

The interim financial statements have been prepared under the historical cost basis and are expressed in United States dollars.

These financial statements have been prepared in accordance with International Accounting Standards 34, Interim Financial Reporting.

The interim financial report is to be read in conjunction with the audited financial statements for the year ended June 30, 2018. The notes to the interim financial statements provide an explanation of events and transactions that are significant to understanding the changes in the financial position and performance of the Company since its financial year ended June 30, 2018.

The significant accounting policies adopted are consistent with those of the audited financial statements for the year ended June 30, 2018.

SYGNUS CREDIT INVESTMENTS LIMITED Notes to the Financial Statements Unaudited

Six Months Ended December 31, 2018

2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION (CONT’D)

(b) Statement of compliance

New standards effective in the current year

(i) IFRS 9, “Financial Instruments”

IFRS 9 replaces International Accounting Standard 39 as it relates to recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, and impairment of financial assets. IFRS 9 is effective for financial periods beginning on or after 1 January 2018. The Company adopted IFRS 9 effective July 1, 2018. In accordance with the transitional provisions of IFRS 9, the comparative figures have not been restated.

The Company’s financial assets have been classified in the following categories based on its business model used managing its financial assets and the contractual cash flows of the financial assets:

(a) Financial assets measured at fair value through profit or loss

(b) Financial assets measured at amortised cost

Under IFRS 9, the Company is required to assess on a forward-looking basis the expected credit loss (“ECL”) associated with its financial assets being carried at fair value through profit or loss and those being carried at amortised cost. ECL is recognised in profit or loss before the loss event has occurred. The measurement of ECL reflects an unbiased and probability weighted amount determined by evaluating a range of possible outcomes. The probability weighting considers multiple scenarios based on reasonable and supportable forecasts. The ECL amount represents the single best outcome, time value of money and reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The computation of ECL takes into account the probability of default (“PD”) and the loss given default (“LGD”). The ECL model uses a three-stage approach based on the extent of deterioration since origination as follows:

Stage 1 – The twelve-month ECL is applied to all financial assets that have not experienced a significant increase in credit risk since origination and are not credit impaired. The computation of the ECL is done using a 12-month PD that is representative of the probability of default occurring over the next 12 months.

Stage 2 – This stage is applicable when a financial asset experiences a significant increase in credit risk subsequent to origination but is not credit impaired. This requires the computation of ECL based on the lifetime PD that represents the probability of default occurring over the remaining estimated life of the financial asset. The provisions for ECL are usually higher in this stage due to the increased credit risk and the longer time span being considered when compared to stage 1.

Stage 3 – This stage is applicable to financial assets that have an objective evidence of impairment. This requires the computation of ECL based on the lifetime PD that represents the probability of default occurring over the remaining estimated life of the financial asset.

The Company’s financial assets for the quarter ended December 31, 2018 falls under stage 1 of the ECL model.

SYGNUS CREDIT INVESTMENTS LIMITED

Notes to the Financial Statements

Unaudited

Six Months Ended December 31, 2018

2. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION (CONT’D)

(b) Statement of compliance (cont’d)

New standards effective during the year (cont’d)

(i) IFRS 9, “Financial Instruments” (cont’d)

The impact of adopting IFRS 9 has been reflected in the Company’s financial performance and its

financial position for the quarter ended December 31, 2018.

(ii) IFRS 15, “Revenue from Contracts with Customers”

IFRS 15 replaces the provisions of International Accounting Standards that relate to the recognition of

revenue. IFRS 15 is effective for financial periods beginning on or after January 1, 2018. The Company

adopted IFRS 15 effective July 1, 2018. The adoption of IFRS 15 did not have any significant impact

on the Company’s operations for the quarter ended December 31, 2018.

3. DIVIDENDS PAID

The Company declared an interim dividend of 0.13358 US cents per share to all shareholders on record as of September

18, 2018. This dividend was paid during the quarter ended December 31, 2018.

4. EARNINGS PER SHARE

Earnings per stock unit is calculated by dividing the profit attributable to stockholders, by the weighted average number of ordinary stock units in issue.

31-Dec-2018

31-Dec-2017

30-Jun-2018

Profit attributable to stockholders $ 947,753 708,393 1,423,747

Weighted average number of ordinary stock units in issue 350,087,563 75,589,591 166,593,971

Basic earnings per stock unit 0.27¢ 0.94¢ 0.9¢

The Company does not have any instrument that has a dilutive effect on its basic earnings per share.

5. NET FOREIGN EXCHANGE GAINS

The net foreign exchange gain for the quarter ended December 31, 2018 is mainly attributable to the appreciation of

the Jamaican dollar against the United States Dollar which resulted in the favourable revaluation of the Company’s

Jamaican dollar assets. The average foreign exchange rate moved from J$134.04 to US$1 at the end of the September

quarter to J$126.80 to US$1 at the end of the December quarter.

SYGNUS CREDIT INVESTMENTS LIMITED

Notes to the Financial Statements

Unaudited

Six Months Ended December 31, 2018

6. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION (CONT’D)

An interim audit was conducted for the six months period ended December 31, 2017 and revisions were made to the

interim results during the full audit for the financial year ended June 30, 2018. The impact of the revisions is shown

below:

Impact of Restatement

As Previously Reported Adjustments As Restated

Statement of financial position effect:

Interest receivable 253,420 20 253,440 Share capital 15,714,856 (47,518) 15,667,338 Retained earnings 660,855 47,538 708,393

Profit or loss effect:

Net foreign exchange gains 247,705 47,538 295,243

1

Top Ten Shareholders

No Shareholders Shareholdings % Holdings

1 JCSD TRUSTEE SERVICES LTD - SIGMA 28,843,560 8.2%

2 ATL GROUP PENSION FUND TRUSTEES NOMINEE LIMITED

27,500,000 7.9%

3 MF&G TRUST & FINANCE LTD 20,139,000 5.8%

4 NATIONAL INSURANCE FUND 20,000,000 5.7%

5 EQUITY FUND ( JMD), JMMB T1 19,460,000 5.6%

6 HEART TRUST / NTA PENSION SCHEME 8,189,300 2.3%

7 MANDALA INC. 7,765,000 2.2%

8 JAMAICA MONEY MARKET BROKERS LTD FM10 7,674,000 2.2%

9 GASSAN AZAN 7,285,700 2.1%

10 YIYAN ZHONG 7,000,000 2.0%

Subtotal 153,856,560 43.9%

Total 350,087,563 100%

2

Shareholdings of Directors, Senior Managers & Connected Parties

No Director Shareholdings Connected Parties % Holdings

1 Clement “Wain” Iton 95,200 N/A 0.03%

2 Nakita Edwards Nil N/A Nil

3 Ian Williams 1,000,000 Ladesha Williams 0.29%

4 Hope Fisher Nil N/A Nil

5 Damian Chin Nil N/A Nil

6 Peter Thompson Nil N/A Nil

7 Dr. Ike Johnson 95,300 N/A 0.03%

Shareholdings of Directors, Senior Managers & Connected Parties

No Senior Management Shareholdings Connected Parties % Holdings

1 Sygnus Capital Management 5,300,000 Dr. Ike Johnson 1.5%

2 McNamara Corporate Services Nil N/A Nil