JM | Jul 2, 2022

Proven delivers commendable 19% growth in interest income for 2021/2022

/ Our Today

Chris Willams, co-founder and CEO of PROVEN Management Ltd, investment managers for PROVEN Investments Limited. (Photo: Facebook @WeAreProven)

Durrant Pate/Contributor

Regional investment company Proven Investments Limited has delivered a commendable performance for its fiscal year ended March 31, 2022, with interest income going up by 19 per cent to US$12.64 million.

This compared to the US$10.58 million reported for the same period in 2021. Interest expense for the year amounted to US$7.56 million, marginally up from the US$7.55 million reported in 2021. As such, net interest income for the year increased by 67 per cent to total US$5.08 million relative to the US$3.04 million reported for the previous year.

Net interest income for the March quarter amounted to US$2.14 million, reflecting an increase of 169 per cent relative to the US$796,214 achieved in the previous year. Gross profit on manufacturing operations amounted to US$15.79 million (2021: nil).

Dividend income amounted to US$204,000, a 386 per cent increase from the US$42,000 recorded in 2021, while fees & commission income notably grew by 19 per cent to US$9.30 million relative to US$7.80 million in 2021.

Drop in net FX gain

Net foreign exchange gain amounted to US$830,000 relative, down from the US$1.88 million posted in 2021. Net fair value adjustments and realized gains fell to US$2.25 million versus US$7.33 million booked in 2021.

Other income moved from US$3.68 million in 2021 to total US$4.69 million for the period under review, a 27 per cent uptick. The Jamaican-based and listed Proven booked a five per cent increase in pension management income to total US$3.34 million, up from US$3.17 million booked in the same period last year.

Loss on disposal of associate amounted to US$23,000 while bargain purchase gain on acquisition of subsidiary totalled US$4.56 million. Consequently, net revenue rose by 71 per cent to total US$46.02 million compared to US$26.95 million recorded for 2021. 

For the last quarter, net revenue amounted to US$17.74 million relative to US$7.93 million in 2021. Operating expenses rose by 105 per cent for the year to total US$42.60 million relative to US$20.77 million in 2021.

Of this, staff costs recorded a 56 per cent increase to close at US$14.92 million relative to US$9.58 million documented for the prior comparable year. ‘Depreciation and Amortization’ rose by 81 per cent to US$3.37 million (2021: US$1.87 million).

Profitability improving

Profit before tax amounted to US$16.65 million versus the US$14.13 million booked in 2021. Taxation rose year over year by approximately 13 per cent from US$1.03 million in 2021 to US$1.17 million. 

As such, net profit amounted to US$15.48 million, an 18 per cent increase when compared to the US$13.10 million in 2021. Proven booked profit for the fourth quarter of US$3.12 million compared to US$5.31 million recorded for the comparable quarter in 2021.

(Photo: Facebook @WeAreProven)

Net profit attributable to shareholders for the year amounted to US$12.54 million relative to US$11.53 million documented for 2021. Profit attributable to shareholders for the March quarter totalled US$2.45 million versus US$5.22 million booked in 2021.

Total comprehensive loss for the year amounted to US$11.50 million compared to income of US$40.93 million reported for the prior fiscal year.

Acquisitions during the period

During the review period, Proven 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 per cent); Roberts Manufacturing Co (51 per cent), and Heritage Education Funds (100 per cent) while completing new and existing real estate projects.

The management team says it 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.”

Total assets as at March 31, 2022, amounted to US$1.14 billion (2021: US$674.54 million), an increase of 69 per cent. The increase resulted from the company booking a US$175.41 million increase in loans receivable to US$207.38 million (2021: US$31.96 million).

Shareholders’ Equity totalled $142.64 million relative to US$161.68 million in 2021; resulting in a book value per share of US$0.21 (2021: US$0.19).


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