July 1, 2021
Proven Investments Limited (PROVEN) for year ended March 31, 2021, reported interest income of $10.58 million, a 48% decrease when compared with the $20.29 million reported for the same period in 2020.
Interest expense for the year amounted to $7.55 million, 17% lower when compared to the $9.11 million booked for the prior year. As such, net interest income for the year witnessed a decline of 73% to total $3.04 million relative to the $11.18 million reported for previous year. Net interest income for the quarter amounted to $800,000 reflecting a decrease of 39% relative to the $1.32 million achieved in the previous year.
Dividend income amounted to $42,000, a 24% increase from the $34,000 recorded in 2020, while fees & commission income notably decreased by 33% to $7.80 million relative to $11.57 million in 2020. Net foreign exchange gain amounted to $1.88 million relative to a gain of $1.91 million recorded in 2020. Net fair value adjustments and realized gains rose to $7.33 million versus $3.78 million booked in 2020. Gain on disposal of subsidiary amounted to nil (2020: $24.93 million).
Other income moved from $13.39 million in 2020 to total $3.68 million for the period under review, a decline of 73%. Proven booked an 8% decrease in pension management income to total $3.17 million, down from $3.43 million booked in the same period last year.
Consequently, net revenue decreased by 62% to total $26.95 million compared to $70.23 million recorded for 2020. For the quarter, net revenue amounted to $7.93 million relative to $39.99 million in 2020.
Operating expenses declined by 45% for the year to total $20.77 million relative to $37.92 million in 2020. Of this, staff costs recorded a 26% decrease to close at $9.58 million relative to $12.88 million documented for the prior comparable year. ‘Depreciation and Amortization’ decreased 11% to $1.87 million (2020: $2 million).
Property expense totaled $1.15 million compared to $9.36 million for the prior financial year. Impairment loss on investments and impairment losses of loans and other assets amounted to a reversal of $396,000 (2020 expense: $362,000) and a reversal of $21,000 (2020 expense: $1.46 million), respectively. Other operating expenses totaled $8.60 million (2020: $11.87 million).
Operating expenses for the quarter fell 62% to $6.19 million versus $16.42 million booked for the comparable quarter in 2020.
Consequently, operating profit for the year and the quarter rose to $6.17 million (2020: $32.31 million) and $1.74 million (2020: $23.57 million), respectively. Notably, share of profit of associate for the year amounted to $10.70 million for 2021 relative to $10.44 million in 2020, while ‘Preference Share Dividend’ decreased 68% to $2.74 million (2020: $8.61 million).
Profit before tax amounted to $14.13 million versus the $34.14 million booked in 2020. Taxation decreased year over year by approximately 46% from $1.90 million in 2020 to $1.03 million. As such, net profit amounted to $13.10 million, a 59% decrease when compared to the $32.24 million in 2020. Proven booked profit for the fourth quarter of $5.31 million compared to $2.46 million recorded for the comparable quarter in 2020.
Net profit attributable to shareholders for the year amounted to $11.53 million relative to $29.98 million documented in for 2020. Profit attributable to shareholders for the quarter totaled $5.22 million versus $3.53 million booked in 2020.
Total comprehensive income for the year amounted to $40.93 million compared to $18.32 million reported for the prior financial year.
Earnings per share (EPS) for the quarter amounted to $0.0084 (2020: $0.0038), while the EPS for the year amounted to $0.0184 (2020: $0.0479). 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 30, 2021, at US$0.26 and $35.59 respectively.
Management noted that, “the Company remained nimble and aggressive in the execution of its acquisitions throughout the pandemic. This posture resulted in the signing of three (3) new deals to acquire Portfolio Assets within the Caribbean Region while aggressively executing on new and existing Real Estate Projects.”
“Subsequent to the year end on June 8, 2021, PIL officially closed on the purchase (50.5% interest) in Roberts Manufacturing Co Limited, a leading manufacturer of animal nutrition, edible fats, and oils in Barbados supplying diversified consumer goods to markets in the Caribbean. The Company continues to make significant endeavours to improve upon its diversified business model by taking advantage of opportunities available in a stressed market. Recently, PIL announced the acquisition of Heritage Education Funds and Fidelity Bank (Cayman) Limited with both transactions scheduled to close in the latter part of 2021. The company is well-positioned to continue its growth trajectory in an improving economy and maintain its commitment to execution of core growth strategies and the protection of our stakeholders,” as per PROVEN.
Balance Sheet at a glance:
Total Assets as at March 31, 2021 amounted to $674.54 million (2020: $600.40 million), an increase of 12%. The increase resulted from the Company booking a 60% increase to $151.86 million in ‘Cash and cash equivalents’ (2020: $94.63 million). The Company also recorded 44% increase in ‘Loan Receivable’ which closed at $31.96 million (2020: $28.86 million).
Shareholders’ Equity totaled $161.68 million relative to $99.01 million in 2020; resulting in a book value per share of $0.26 (2020: $0.16). Management noted that, “this was as a result of the successful execution of the raise of US$30 million equity executed over the period and a 21.81%
increase in Retained Earnings.”
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