November 12, 2021
Proven Investments Limited (PROVEN), for six months ended September 30, 2021 reported interest income of $5.41 million, a 10% decrease when compared with the $6 million reported for the same period in 2020. Interest income for the second quarter amounted to $2.78 million relative to $2.91 million for the second quarter ended September 30, 2020. PROVEN noted, “PIL continues to execute on strategies to position the company for sustainable growth, completing the acquisition of Heritage Funds International during the period. The success of PIL’s footprint-expansion efforts continues with the anticipated addition of Fidelity Bank (Cayman) Limited, which is currently pending regulatory approval. Thus, PROVEN Group’s momentum going into the year 2022 is strong as the company’s performance continues to demonstrate resilience.”
Interest expense for the first six months amounted to $3.40 million, 24% less when compared to the $4.46 million booked for the prior year. Net interest income for the period witnessed a 30% surge to total $2.01 million relative to the $1.54 million reported for previous year. Net interest income for the quarter rose by 60% to $1.06 million (2020: $661,721).
Dividend income amounted to $88,034, a 771% increase from the $10,112, recorded in 2020, while fees & commission income rose to $3.85 million relative to $3.40 million for the corresponding period of 2020.
Other income moved from $2.12 million in 2020 to total $2.87 million for the period, a growth of 35%. Proven booked a 7% increase in pension management income to total $1.68 million, up from $1.57 million booked for the prior year’s corresponding period. Gains on securities trading closed declined to $1.55 million compared to $4.77 million a year prior. Notwithstanding, net revenue grew by 26% to total $17.65 million compared to $14.04 million recorded for 2020. Net revenue for the quarter amounted to $11.15 million compared to $8.80 million in 2020.
Operating expenses rose by 62% for the six months to total $15.62 million relative to $9.63 million in 2020. Of this, administrative and general expenses recorded a 58% increase to close at $14.14 million relative to $8.92 million documented for the first six months ended September 30, 2020. ‘Depreciation and Amortization’ increased 54% to $1.36 million (2020: $887,863), The Company booked a IFRS 9 provisioning gain of $113,332 compared to loss of $184,191 in 2020.
Consequently, Operating Profit for the period declined 54% to $2.03 million (2020: $4.41 million). Operating profit for the quarter declined by 38% to $2.33 million compared to $3.77 million recorded for the corresponding quarter of 2020.
Notably, share of profit of associate rose significantly to $7.11 million for the period relative to $3.29 million in 2020. ‘Preference Share Dividend’ grew to $1.20 million (2020: $1.05 million).
As such, profit before tax amounted to $7.94 million versus the $6.65 million booked in 2020. Taxation rose year over year by approximately 16% from $509,695 in 2020 to $593,049 in 2020. As such, Net Profit amounted to $7.35 million, a 20% increase when compared to the $6.14 million in 2020. Net profit for the quarter amounted to $5.64 million relative to $4.32 million booked for the second quarter of 2020.
Net profit attributable to shareholders for the period amounted to $5.99 million relative to $4.80 million documented in 2020. For the quarter, net profit attributable to shareholders closed at $4.43 million (2020: $3.39 million). Total comprehensive income for the six months amounted to $8.65 million compared to $26.76 million reported for the prior financial year’s corresponding period.
Earnings per share (EPS) for the period amounted to $0.079 (2020: $0.0063), while for the quarter the EPS amounted to $$0.0058 (2020: $0.0045). The twelve months trailing EPS amounted to $0.0167. The number of shares used in our calculations is 759,432,000. Notably, the stock price for PROVEN and PROVENJA closed the trading period on November 12, 2021 at US$0.23 and $32.52 respectively with a corresponding P/E ratio of 13.07 and 13.19 times respectively.
Balance Sheet Highlights:
Total Assets as at September 30, 2021 amounted to $741.05 million (2020: $621.90 million), a 19% increase. The growth resulted from the Company booking $158.53 million in ‘Cash and cash equivalents’ relative to $125.14 million in 2020. The Company also reported an increase in ‘Intangible asset’ which ended at $45.05 million relative to $19.34 million the prior year.
Shareholders’ Equity totalled $167.15 million relative to $121.86 million in 2020; as such book value per share now amounts to $0.22 (2020: $0.16).
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