Date: February 14, 2019
Reported in US$ (except where it is indicated otherwise)
Proven Investments Limited (PROVEN) for the nine months ended December 31, 2018 reported interest income of $21.52 million, a 2% increase when compared with the $21.09 million reported for the same period in 2017. Total interest income for the quarter amounted to $7.34 million reflecting a marginal increase of 0.2% over the $7.33 million achieved in the corresponding quarter of the previous year.
Interest expense for the period amounted to $5.42 million, a 20% decrease when compared to the $6.74 million booked for the comparable period in the prior year. As such, net interest income for the nine months ended witnessed 12% increase to total $16.10 million relative to the $14.36 million in the corresponding period of the previous year. Management noted, the increase, “reflects success in the carry trade strategy as the Company was able to concurrently increase interest income while reducing interest expense by 19.59%, despite a reduction in interest-bearing assets over the period.”
The Company booked a loss on securities trading of $304,988 relative to the gain of $3.26 million recorded for the comparable period for the previous year. Dividend income amounted to $612,205, a 10% decrease from the $683,425 recorded in 2017, while Fees & Commission income notably increased by 66% to $6.88 million relative to $4.15 million in 2017. Net foreign exchange gain amounted to $1.29 million relative to a loss of $297,268 million recorded in 2017.
Other income moved from $1.77 million to total $3.16 million for nine months ended December 31, 2018, a vast increase of 78%. Proven booked an increase in pension management income to total $2.19 million, up from $1.72 million booked last year for the same time period.
Consequently, net revenue increased by 17% to total $29.92 million compared to $25.64 million recorded for the corresponding period in 2017. For the quarter, Net Revenue rose 43% to $11.50 million relative to $8.05 million in 2017.
Operating Expenses climbed by 21% for the period to total $20.01 million relative to $16.52 million in 2017. Of this, Administrative and General Expenses recorded a 20% increase to close at $17.10 million relative to $14.27 million documented for the prior year. ‘Depreciation and Amortization’ declined 5% to $1.22 million (2017: $1.28 million), while ‘Preference Share Dividend’ increased 3% to $995,236 (2017: $926,469). Operating expenses for the quarter rose 44% to $7.92 million versus $5.50 million booked for the comparable quarter in 2017.
Consequently, Operating Profit for the period and the quarter rose 9% and 41% respectively to $9.90 million (2017: $9.12 million) and $3.58 million (2017: $2.54 million) respectively.
Profit before tax amounted to $9.90 million versus the $9.12 million booked in 2017. Taxation decreased year over year by approximately 17% from $1.36 million for the nine months ended December 2017 to $1.12 million. As such, Net Profit amounted to $8.78 million, a 13% increase when compared to the $7.77 million in 2017. Proven booked profit for the third quarter of $2.91 million compared to $2.32 million recorded for the comparable period in 2017.
Net profit attributable to shareholders for the nine months amounted to $5.90 million relative to $5.23 million. Profit attributable to shareholders for the quarter totaled $2.01 million versus $1.48 booked in 2017.
Earnings per share (EPS) for the quarter amounted to $0.0032cents (2017: $0.0024), while the EPS for the nine months amounted to $0.0094 (2016: $0.0084). The twelve-month trailing EPS amounted to $0.0102.The number of shares used in our calculations is 625,307,963. Notably, the stock price for PROVEN and PROVENJA closed the trading period on February 14, 2019 at US$0.22and $27.50 respectively.
PROVEN indicated the following:
BOSLIL Bank Limited
Proven Investments Limited currently owns 75% of the equity of BOSLIL Bank Limited. BOSLIL experienced another successful period, as net profit totalled US$2.51 million (US$1.88 million attributable to PIL) and Total Assets of the Bank as at December 31, 2018 stood at US$258.75 million.
Real Estate
PROVEN REIT Limited has successfully completed and sold its second residential development on Sullivan Avenue, Kingston 8. The third and fourth developments in the pipeline are both scheduled to break ground on Millsborough Avenue in Kingston 6, Jamaica and are expected to be completed and sold over the next twelve to eighteen months. Over the quarter, the company successful purchased commercial property which is expected to further boast rental income. The company continues to closely monitor the local and international real estate markets for new opportunities. Over the period the company completed a revaluation of its investment properties, yielding gains of US$1.45 million, which contributed to a net profit of US$1.43 million realised for the period ended December 31, 2018.
International Financial Planning Limited
The company is pleased to report that it completed the full acquisition of the IFP Limited in August 2018. IFP is a licensed securities dealer with offices in Cayman, Bermuda and the British Virgin Islands that caters to a variety of investors ranging from medium to high net worth individuals. IFP’s Net Profit since acquisition totalled US$0.43 million.
Investment In Associated Companies– JMMB Group Limited
During the period PIL acquired 20.01% of the participating voting shares in JMMB Group Limited. This private equity investment fits the PROVEN Investment Ltd risk to reward objectives and aligns with PROVEN’s core Investment Strategy; which seeks opportunities to invest in key growth sectors primarily the Financial Services Sector.
Balance Sheet at a glance:
Total Assets as at December 31, 2018 amounted to $626.71 million (2017: $600.85 million), an increase of 4%. The growth resulted from the Company booking $72.44 million in ‘Investment in Associates relative to nil in 2017. The Company also recorded $54.77 million in Loans receivable (2017: $38.77million) and a $35.08 million improvement in Intangible Assets to (2017: $20.45 million).
Shareholders’ Equity totaled $80.65 million relative to $90.07 million in 2017; as such book value per share now amounts to $0.13 (2017: $0.14).
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