Date: August 9, 2018 

Reported in US$ (except where it is indicated otherwise)

Proven Investments Limited (PROVEN) for the three months ended June 30, 2018 reported interest income of $7.21 million, a 5% or $333,400 increase when compared with the $6.87 million reported for the same period in 2017.

Interest expense for the period amounted to $1.93 million, an 18% decline when compared to the $2.36 million booked for the comparable period in the prior year. As such, net interest income for the quarter witnessed a 17% increase to total $5.28 million relative to the $4.51 million in the corresponding period of the previous year.

Dividend income amounted to $273,777, 13% above the $241,467 recorded in 2017, while Fees & Commission income declined by 42% to $701,092 relative to $1.21 million in 2017. Net foreign exchange gain amounted to $893,779 relative to a gain of $196,048 million recorded in 2017.

Other income moved from $95,944 to total $129,586 for period a growth of 35%. Proven also booked an increase in pension management income to total $1.20 million, up from $538,798 booked last year for the same time period.

Consequently, net revenue increased by 17% to total $8.52 million compared to $7.25 million recorded for the corresponding period in 2017.

Operating Expenses climbed by 11% for the period to total $5.55 million relative to $4.98 million in 2017. Of this,

• Administrative and General Expenses recorded a 1% upward movement to close at $4.44 million relative to $4.39 million documented for the prior year.
• Depreciation and Amortization remained relatively flat at $442,640 (2017: $441,376)
• Preference Share Dividend increased 79% to $266,322 (2017: $148,431)
• IFRS 9 provisioning amounted to $408,224 relative to nil the prior year

Consequently, Operating Profit for the quarter rose 30% to $2.96 million (2017: $2.27 million).Profit before tax amounted to $2.96 million versus the $2.27 million booked in 2017. Taxation declined year over year by 61% from $287,184 to $112,581.  As such, Net Profit amounted to $2.85 million, a 44% increase when compared to the $1.99 million in 2017.

Net profit attributable to shareholders amounted to $1.79 million compared to $1.13 million for the corresponding period in 2017.

Earnings per share (EPS) for the quarter amounted to $0.29 cents (2017: $0.18 cents). The trailing twelve months earnings per share amounted to $0.01. 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 August 9, 2018, at US$0.19 and J$26.01 respectively.

Balance Sheet at a glance:

Total Assets as at June 30, 2018 to $575.12 million (2017: $598.73 million), a decline of 4%. This decline resulted from a $19.49 million decrease in Cash and Cash Equivalents to total $93.62 million (2017: $113.10 million) and a $18.67 million decline in Available-for-sale investments to total $385.84 million (2017: $404.51 million).

Shareholders’ Equity totaled $82.08 million relative to $70.91 million in 2017; as such book value per share now amounts to $0.13 (2017: $0.11).

Disclaimer:

Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.