February 15, 2023

In United States dollars (except where it is indicated otherwise)

Proven Investments Limited (PROVEN) for the nine months ended December 31, 2022 reported interest income of $23.41 million, a 180% increase when compared with the $8.37 million reported for the same period in 2021.

Interest expense for the period amounted to $12.12 million, a 123% increase when compared to the $5.43 million booked for the comparable period in the prior year. As such, net interest income for the nine months ended witnessed a 283% increase to total $11.28 million relative to the $2.94 million in the corresponding period of the previous year. Net interest income for the quarter amounted to $4.75 million reflecting an increase of 408% relative to the $934,401 achieved in the corresponding quarter of the previous year.

The Company booked a gain on securities trading of $30,130 relative to the gain of $1.58 million recorded for the comparable period for the previous year. Dividend income amounted to $82,734, a 36% decrease from the $129,828 recorded in 2021, while Fees & Commission income rose 23% to $8.48 million relative to $6.88 million in 2021.

Other income moved from $4.05 million in 2021 to total $6.34 million for nine months ended December 31, 2022, an increase of 56%.

Net gross income from manufacturing amounted to $13.87 million versus $9.40 million for similar period of 2021.

Consequently, net revenue increased by 52% to total $42.91 million compared to $28.28 million recorded for the corresponding period in 2021. For the quarter, Net Revenue closed at $14.59 million relative to $10.63 million in 2021.

Operating Expenses rose 82% for the period to total $45.18 million relative to $24.89 million in 2021. Of this, Administrative and General Expenses recorded a 79% increase to close at $40.49 million relative to $22.67 million documented for the prior year. Depreciation and Amortization for the nine months increased 130% to $4.92 million (2021: $2.14 million), while IFRS 9 Provisioning gain was $234,692 versus a loss of $79,474.

Operating expenses for the quarter climbed to $14.51 million versus $9.27 million booked for the comparable quarter in 2021.

Consequently, Operating Loss for the period amounted to $2.27 million versus an operating profit of $3.39 million in 2021. Whereas operating profit for the quarter was $84,794 (2021: $1.36 million).

Share of results of associates amounted to $6.29 million, down 48% from the $12.05 million reported in 2021.

Profit before tax amounted to $4.30 million versus the $13.29 million booked in 2021. Taxation increased year over year by approximately 39% from $936,441 for the nine months ended December 2021 to $1.30 million in 2022.  As such, Net Profit amounted to $3.00 million, a 76% decrease when compared to the $12.36 million in 2021. Proven booked profit for the third quarter of $1.40 million compared to $5.01 million recorded for the comparable period in 2021.

Net profit attributable to shareholders for the nine months amounted to $3.28 million relative to $10.09 million. Profit attributable to shareholders for the quarter totalled $1.57 million versus $4.10 million booked in 2021.

Earnings per share (EPS) for the nine months amounted to US$0.0043 (2021: US$0.0133), while the EPS for the quarter amounted to US$0.0021 (2021: US$0.0054). The twelve-month trailing EPS amounted to US$0.0071. The number of shares used in our calculations is 801,732,000. Notably, the stock price for PROVEN and PROVENJA closed the trading period on February 14, 2023 at US$0.189 (J$27.61) with a corresponding PE ratios of 26.57 times (26.13 times).

Balance Sheet Highlights:

Total Assets as at December 31, 2022 amounted to $1.09 billion (2021: $754.18 million), a 44% increase. The increased resulted from the Company 577% increase in ‘Loans Receivable’ to $245.76 million relative to $36.33 million in 2021. Additionally, the Company recorded $30.60 million in ‘Property, Plant and Equipment’ versus the $11.51 million booked in 2021.

Shareholders’ Equity totalled $140.07 million relative to $164.26 million in 2021; as such book value per share now amounts to $0.18 (2021: $0.22).

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