Proven Investments Ltd reported last week in its year-end financials that significant top-line growth in the financial year ended March 2016 was due mainly to its subsidiary Access Financial Ltd.

The group experienced an 82.6 per cent increase in net revenue year over year to US$21.00 million versus US$11.38 million in the previous year. The increase came from AFS in which the investment house acquired a 49.27 per cent stake in December 2014.

AFS produced net profits of US$2.38 million for the year ended March 31, 2016, more than double the year before.

The micro-financier’s loan portfolio was US$17.2 million as at March 31, 2016, representing a 33 per cent increase for the financial year.

Notes attached to the audited financials for AFS for the year ended March 2016 indicate that Proven provided it with just under $500 million in loan funding and also arranged corporate bonds to add to financing.

Additional funding included $199.85 million in the form of a five-year fixed and variable rate corporate bond note due 2020 arranged by Proven Wealth Ltd. Interest is payable every six months and is fixed at 11 per cent per annum for two years and variable thereafter in relation to treasury rates.

Proven said that after excluding three extraordinary gains of US$1.36 million from a subsidiary purchase in the results of the previous fiscal year, its own profit represents a year over year decline of 41.5 per cent.

Directors noted that the decline in profits for the year was due to the decision to rebalance positions in the portfolio, reducing exposure to the high-yield bond market – specifically the energy and mining sectors.

Also, during the year, the portfolio was negatively affected by a bond-restructuring exercise and an impairment loss of $1.7 million on an energy-related security, it was noted.

Proven said that spread income was the major contributor to revenue during the period. Consolidated net interest income grew by 81 per cent year over year from US$7.65 million to US$13.73 million.

Group dividend income grew by 201 per cent to US$1.37 million in 2016 versus US$0.44 million the previous year.