Micro-Financing Solutions (MFS) Capital Partners has been sailing through rough waters but has been limping to profitability ever since its take-over of the previously named company, SSL Venture Capital last year.
For the nine months ending March 31, 2023, MFS Capital recorded profits after taxes of J$3.9 million, resulting from the receivables financing revenue line and other income from consulting and financial advisory services. However, the quarter closed with a loss of J$1.9 million, as there were no receivables financing transactions realised during the March third quarter.
Profit per stock unit for the nine months was $0.010 per share. During the 2022 September quarter, the first under new management and a new name, the former SSL Venture Capital recorded a small after-tax profit of J$5.3 million.
Micro-Financing Solutions (MFS) purchased 100 per cent share equity of SSL Venture Capital in May last year for some J$38 million, which represented one-tenth of the market value of shares.
SSL Venture Capital, which had been insolvent and struggling to maintain profitability with consecutive quarterly losses was renamed MFS Capital Partners Limited upon the acquisition by MFS.
Revenues and expenses
Revenues for the nine months amounted to $14.5 million primarily from receivables financing. Other income totalling $5.5 million, resulted from primarily financial advisory services.
During the combined three quarters, administrative and operational expenses closed at J$15.5 million in addition to finance related costs of J$280,000, bringing overall expenses to J$15.8 million. The expenses incurred relates to the operating costs for the head office.
Total assets stood at J$67.3 million for the quarter with total liabilities at J$112.1 million and shareholders’ equity at a negative $44.7 million.
The management reports that, “despite the delay in completion of the acquisition of 100 per cent shares in Micro-Financing Solutions Limited, the first such transaction under the current leadership team, we expect to see robust growth after its completion. Micro-Financing Solutions is a known player in the cambio and remittance sector and will be looking to expand across Jamaica over the next 18 months. We are therefore looking forward to finalise this acquisition as we have identified other prospective transactions in our pipeline.”