June 30, 2022
In United States dollars (except where it is indicated otherwise)
Proven Investments Limited (PROVEN) for the year ended March 31, 2022, reported an interest income of $12.64 million, a 19% increase when compared with the $10.58 million reported for the same period in 2021.
Interest expense for the year amounted to $7.56 million (2021: $7.55 million). As such, net interest income for the year witnessed an increase of 67% to total $5.08 million relative to the $3.04 million reported for the previous year. Net interest income for the quarter amounted to $2.14 million reflecting an increase of 169% relative to the $796,214 achieved in the previous year.
Gross profit on manufacturing operations amounted to $15.79 million (2021: nil). Dividend income amounted to $204,000, a 386% increase from the $42,000 recorded in 2021, while fees & commission income notably grew by 19% to $9.30 million relative to $7.80 million in 2021. Net foreign exchange gain amounted to $830,000 relative to a gain of $1.88 million recorded in 2021. Net fair value adjustments and realized gains fell to $2.25 million versus $7.33 million booked in 2021.
Other income moved from $3.68 million in 2021 to total $4.69 million for the period under review, a 27% uptick. Proven booked an 5% increase in pension management income to total $3.34 million, up from $3.17 million booked in the same period last year.
Loss on disposal of associate amounted to $23,000 while Bargain purchase gain on acquisition of subsidiary totalled $4.56 million.
Consequently, net revenue rose by 71% to total $46.02 million compared to $26.95 million recorded for 2021. For the quarter, net revenue amounted to $17.74 million relative to $7.93 million in 2021.
Operating expenses rose by 105% for the year to total $42.60 million relative to $20.77 million in 2021. Of this, staff costs recorded a 56% increase to close at $14.92 million relative to $9.58 million documented for the prior comparable year. ‘Depreciation and Amortization’ rose by 81% to $3.37 million (2021: $1.87 million).
Property expense totaled $34,000 compared to $1.15 million for the prior financial year. Impairment loss on financial instruments amounted to $1.22 million, relative to last year’s reversal on financial instruments of $417,000. Other operating expenses totaled $23.06 million (2021: $8.60 million).
Operating expenses for the quarter grew by 186% to $17.72 million versus $6.19 million booked for the comparable quarter in 2021.
Consequently, operating profit for the year and the quarter rose to $3.42 million (2021: $6.17 million) and $23,379 (2021: $1.74 million), respectively. Notably, share of profit of associate for the year amounted to $15.78 million for 2022 relative to $10.70 million in 2021, while ‘Preference Share Dividend’ decreased 7% to $2.56 million (2021: $2.74 million).
Profit before tax amounted to $16.65 million versus the $14.13 million booked in 2021. Taxation rose year over year by approximately 13% from $1.03 million in 2021 to $1.17 million. As such, net profit amounted to $15.48 million, an 18% increase when compared to the $13.10 million in 2021. Proven booked profit for the fourth quarter of $3.12 million compared to $5.31 million recorded for the comparable quarter in 2021.
Net profit attributable to shareholders for the year amounted to $12.54 million relative to $11.53 million documented for 2021. Profit attributable to shareholders for the quarter totaled $2.45 million versus $5.22 million booked in 2021.
Total comprehensive loss for the year amounted to $11.50 million compared to income of $40.93 million reported for the prior financial year.
Earnings per share (EPS) for the quarter amounted to $0.0032 (2021: $0.0069), while the EPS for the year amounted to $0.0165 (2021: $0.0152). 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 June 29, 2022, at US$0.26 and $37.20 with corresponding P/E ratios of 15.73x and 14.65x respectively.
Management noted that, “The Company completed three acquisitions during the year, despite the ongoing COVID-19 pandemic. The US$30 million APO raise in FY 2021, helped to finance the acquisition of Fidelity Bank (Cayman) Limited (100%), Roberts Manufacturing Co (51%), and Heritage Education Funds (100%) while completing new and existing Real Estate Projects. The PROVEN Team remains encouraged by investors’ continued support along our journey of growth and evolution as a Private Equity Company. PROVEN will focus on creating value in its recent acquisition.”
Balance Sheet at a glance:
Total Assets as at March 31, 2022 amounted to $1.14 billion (2021: $674.54 million), an increase of 69%. The increase resulted from the Company booking a $175.41 million increase in loans receivable to $207.38 million (2021: $31.96 million).
Shareholders’ Equity totaled $142.64 million relative to $161.68 million in 2021; resulting in a book value per share of $0.21 (2021: $0.19).
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