PROVEN reports 67% decrease in nine months net profit attributable to shareholders

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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