MFS Capital Partners is working on plans to put more capital into Capital Solutions Limited after revenue at the business fell by more than 80 per cent and it slipped into a loss.

Chief Executive Officer Dino Hinds said the business, in which the group holds a 35 per cent interest, needs more capital to realise its potential. Management is considering strategies to fund it, although he did not disclose how much is needed or when the money would be secured.

Capital Solutions is an investment and cambio business, offering managed investment portfolios in shares, bonds and money market instruments, alongside foreign currency exchange services.

The plans come as MFS faces weaker earnings across the group. Audited annual profit fell 20.9 per cent to $89.47 million, even with a $65-million gain from the revaluation of investment property. Revenue also declined as the group retained less income from cambio services and earned lower remittance fees.

Asked by the Jamaica Observer whether Capital Solutions’ weaker performance warranted restructuring or a review of the investment’s value, Hinds maintained that management still saw potential in the business. Getting more capital into it, he said, would allow that value to be realised.

“We have a couple strategies that we’re working on in relation to that,” he said.

Capital Solutions recorded revenue of $5.01 million for the 12 months ended April 30, 2026, down from $26.63 million a year earlier, according to information included in MFS’s audited accounts. The 81.2 per cent decline was accompanied by a $16.83-million loss, reversing a $4.80-million profit in the previous year.

Those figures cover Capital Solutions’ April financial year end, while MFS’s audited group results cover the year ended June 30.

The group recorded a $4.36-million share of the associate’s loss in its annual results, bringing the carrying value of the investment down to $56.77 million from $61.12 million.

The 35 per cent interest was acquired in September 2022 for $65.27 million. Management has not made an additional impairment charge against the investment, with the accounts stating that its assessment of financial performance and projected cash flows did not identify grounds for a further write-down.

Hinds did not outline the funding options under consideration or say whether additional capital would come from MFS, other shareholders or an outside investor.

At group level, MFS’s revenue declined to $139.27 million from $143.78 million, a fall of 3.1 per cent. Profit after tax was down from $113.06 million.

The property valuation gain provided substantial support to the latest earnings. Investment property was valued at $470 million, up from $405 million, following an external valuation dated April 7, 2026. The resulting $65-million gain was recorded in other income; it did not represent cash received from selling the property.

The previous year’s earnings also benefited from items outside regular revenue, including a $50-million related-party balance write-off and a $28.31-million gain on the disposal of subsidiaries.

Foreign currency trading remains MFS’s largest revenue source, but higher commission expenses reduced the income retained from that business during the latest year.

Gross cambio income edged up to $257.45 million from $254.89 million. Commission expenses, however, increased to $131.50 million from $124.53 million, leaving net cambio income of $125.95 million, compared with $130.36 million previously.

Remittance service fees also declined, moving to $7.10 million from $7.45 million.

Hinds expects the remittance operation to earn more over time, pointing to a new location and plans to add other remittance providers to its locations. He did not provide transaction volumes or a forecast for the expected increase in commissions.

Management is also preparing for changes in how customers use those services. Hinds told the
Business Observer he expects fewer visits to physical locations as more transactions move online, and that the company plans to introduce products and services to supplement its remittance business.

He did not identify the additional offerings or give a timetable for their introduction.

MFS has meanwhile expanded beyond financial services with its acquisition of Century Business Machines Limited, a supplier of office equipment, technology products and furniture. The takeover was announced as completed in August, after the June financial year end, so its contribution is outside the period covered by the audited results.

The Observer reported in August that MFS had acquired all of CBM’s issued shares but had not disclosed the purchase price or how the transaction was financed.

The latest audited accounts show that CBM was also a lender to MFS before the takeover. Two unsecured loans totalling $30 million remained on the books at June 30, both carrying interest at nine per cent.

Asked whether those loans were repaid, offset or otherwise settled when the acquisition closed, Hinds said the forthcoming quarterly results would provide greater clarity. He also referred questions about the purchase price and the acquisition’s effect on the balance sheet to those results.