February 14, 2022
In United States dollars (except where it is indicated otherwise)
Proven Investments Limited (PROVEN) for the nine months ended December 31, 2021 reported interest income of $8.37 million, a 2% decrease when compared with the $8.54 million reported for the same period in 2020.
Interest expense for the period amounted to $5.43 million, a 14% decrease when compared to the $6.29 million booked for the comparable period in the prior year. As such, net interest income for the nine months ended witnessed a 31% increase to total $2.94 million relative to the $2.24 million in the corresponding period of the previous year. Net interest income for the quarter amounted to $934,401 reflecting an increase of 34% relative to the $698,823 million achieved in the corresponding quarter of the previous year.
The Company booked a gain on securities trading of $1.58 million relative to the gain of $5.69 million recorded for the comparable period for the previous year. Dividend income amounted to $129,828, a 367% increase from the $28,789 recorded in 2020, while Fees & Commission income rose 30% to $6.62 million relative to $5.08 million in 2020.
Other income moved from $2.64 million in 2020 to total $4.32 million for nine months ended December 31, 2021, an increase of 64%. Proven booked a increase in pension management income which closed at $2.51 million, from $2.36 million booked last year for the same time period.
Net gross income from manufacturing amounted to $9.40 million versus nil for similar period of 2020.
Consequently, net revenue increased by 49% to total $28.28 million compared to $19.02 million recorded for the corresponding period in 2020. For the quarter, Net Revenue closed at $10.63 million relative to $4.98 million in 2020.
Operating Expenses rose 71% for the period to total $24.89 million relative to $14.58 million in 2020. Of this, Administrative and General Expenses recorded a 68% increase to close at $22.67 million relative to $13.46 million documented for the prior year. Depreciation and Amortization for the nine months increased 59% to $2.14 million (2020: $1.34 million), while IFRS 9 Provisioning was $79,474 versus a loss of $215,624.
Operating expenses for the quarter climbed to $9.27 million versus $4.96 million booked for the comparable quarter in 2020.
Consequently, Operating Profit for the period fell 24% to $3.39 million (2020: $4.44 million) whereas, operating profit for the quarter was $1.36 million (2020: $19,628).
Payment of Preference Share Dividend increased 72% to $2.15 million (2020: $1.25 million). Share of Results of Associates amounted to $12.05 million (2020: $5.50 million).
Profit before tax amounted to $13.29 million versus the $8.69 million booked in 2020. Taxation increased year over year by approximately 4% from $897,169 for the nine months ended December 2020 to $936,441 in 2021. As such, Net Profit amounted to $12.36 million, a 59% increase when compared to the $7.79 million in 2020. Proven booked profit for the third quarter of $5.01 million compared to $1.65 million recorded for the comparable period in 2020.
Net profit attributable to shareholders for the nine months amounted to $10.09 million relative to $6.31 million. Profit attributable to shareholders for the quarter totalled $4.10 million versus $1.51 million booked in 2020.
Earnings per share (EPS) for the nine months amounted to $0.0133 (2020: $0.0083), while the EPS for the quarter amounted to $0.0054 (2020: $0.0020). The twelve-month trailing EPS amounted to US$0.0202. 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, 2021 at US$0.23 (J$33.74) with a corresponding PE ratios of 11.39 times (10.79 times).
Balance Sheet Highlights:
Total Assets as at December 31, 2021 amounted to $754.18 million (2020: $649.73 million), a 16% increase. The increased resulted from the Company 30% increase in ‘Cash and cash equivalents’ to 166.68 million relative to $127.93 million in 2020. Additionally, the Company recorded $44.56 million in ‘Investment property’ versus the $19.68 million booked in 2020.
Shareholders’ Equity totalled $164.26 million relative to $136.17 million in 2020; as such book value per share now amounts to $0.22 (2020: $0.18).
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