Profit up US$3.44 million for Proven

Friday, August 16, 2019

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Public investment firm, Proven Investments Limited (PIL), on Tuesday (August 13) reported after-tax profit of US$3.44 million for the quarter ended June 30, 2019.

This is a 21 per cent increase when compared to the US$2.84 million after tax profit recorded for the corresponding period last year. Net profit attributable to shareholders for the quarter amounted to US$2.44 million, a 36 per cent increase from the US$1.79 million earned in the same period last year.

For the quarter, consolidated operating expenses increased by 52.2 per cent to US$8.44 million due to administrative and general expenses, arising from new acquisitions and the right-sizing of existing portfolio firms to execute Proven's growth strategies. Proven's total assets amounted to US$642.83 million, which is an increase of 11.77 per cent when compared to the US$575.12 million recorded over the prior year.

Net revenues increased by 26.6 per cent to US$10.77 million compared to US$8.51 million earned during the quarter ended June 30, 2018, mainly due to improvement in fees and commission and trading gains. With eight years of operation, PIL's main investment strategies are in private equity, financial services, and real estate.

Currently its diversified private equity holdings are Proven Wealth Limited (PWL) merged with Proven Fund Management Limited (PFML), Access Financial Services, Boslil Bank Limited, Proven Real Estate Investment Trust, International Financial Planning Limited, Dream Entertainment Limited, and Jamaica Money Market Brokers Limited (JMMB) as associated companies.

The private equity holdings contributions to PIL's bottom-line were:

Proven Wealth Limited and Proven Fund Management Limited — Reported net profits totalling US$720,000 for the period, while total assets of the company stood at US$114.19 million. The firm continues to focus on its strategy to grow the wealth management business through offering innovative investment solutions to clients and reduce the issuing of repurchase agreements while improving its operating efficiency. PWL and PFML were merged as at April 1, 2019.

Access Financial Services Limited —Produced a net profit of US$1.26 million; the company's loan portfolio increased by 32.44 per cent to US$32.79 million for the period under review when compared to the corresponding period last year. The significant increase in the company's asset base reflects its acquisition of Embassy Loans Limited, a microfinancing outfit with operations in the US, along with core organic growth in its core loan portfolio.

Boslil Bank Limited — Net profit amounted to US$1.39 million was mainly driven by growth in its core business, reflecting optimal asset liability management, which resulted in the bank posting a 19.8 per cent increase in net interest income compared with the same period last year.

International Financial Planning Limited (IFP) — Contributed US$380,000 to net profits on revenues of US$1.50 million earned over the quarter. IFP is a licensed securities dealer with offices in Cayman, Bermuda, and the British Virgin Islands.

Proven Real Estate Investment Trust — Reported net profit of US$100,000 on revenues of US$320,000. Total assets for the period under review amounted to US$33.49 million, a 68.8 per cent increase when compared to US$19.84 million reported for the corresponding period last year. This subsidiary continues to diversify its portfolio of real estate holdings, which as at June 30, 2019 included three rental income properties and six developmental sales projects — all at various stages of the development cycle.

I nvestment in Associated Companies — JMMB — PIL acquired 20.01 per cent of the participating voting shares in JMMB Group in December 2018.

Dream Entertainment — Acquired a 20 per cent stake in February this year, for a total of J$75.28 million. The company is an event organiser, primarily in the business of conceptualising, owning, and producing large events such as Dream Weekend, Xodus Carnival, Dream Weekend Cruise, and The Cooler Weekend.

Proven's president and chief executive officer, Christopher Williams, in a press release credited the positive financial performance to team work, noting “our teams across all our businesses are extremely focused and results driven. We are all aligned with a laser-like precision on success being our end results”. He commented further that the macroeconomic environment is conducive to business growth.

The board of directors of PIL approved an interim dividend payment of US$.0028 per share to all ordinary shareholders on record as at August 13, 2019 to be paid on August 27, 2019.


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