Durrant Pate/Contributor

PROVEN Group delivered a sub-par performance during its June first quarter, in which its cost of debt peaked at US$6.3 million, up from US$5.58 million a year ago.

The Jamaican financial group recorded a net loss attributable to owners of US$2.6 million for the quarter. This was triggered by an operating loss of US$1.9 million and a negative share of profit from associates of US$0.8 million, albeit a significant improvement from the loss of US$1.8 million in the corresponding quarter. 

The loss for the quarter translated to negative earnings per share of US$0.0033. On the revenue side, the company saw net revenue of US$12.7 million for the quarter, up from US$14.6 million in the corresponding quarter of 2024, representing a 12.8% decline. 

The reduction was primarily due to lower net interest income from the upward repricing of the group’s cost of debt, which is expected to decrease in the coming quarters, due to falling regional and international rates, as well as a decline in gross profits from its Robert’s Manufacturing subsidiary.

Revenue breakdown

Net interest income for the quarter closed on US$3.4 million, down 24.1 per cent from US$4.5 million in the prior year. The contraction is primarily due to the higher refinancing rates on the group’s debt, which offset improved spreads on the wealth management and banking portfolios. 

PROVEN anticipates a gradual reduction in funding costs over the short to medium term due to expected macroeconomic stability and lower interest rates. Fees and commissions for the quarter went down by 13.0 per cent to US$2.5 million, compared to the same quarter last year. 

This decrease was impacted by reduced trading volumes and commission-driven activities within the wealth segment, though equity trading and investment banking fees showed resilience. Fund management income grew by 8.8 per cent to US$1.0 million for the quarter, compared to the US$0.9 million in the prior period. 

With continued recovery in asset prices and growth in the group’s asset management platform, income is projected to continue to grow. Property sales were recorded at US$0.5 million for the quarter, which was offset by expenses of US$0.5 million, resulting in a net loss of US$0.03 million. 

These results are expected to significantly improve in the coming quarters as Proven Properties completes its Sol Harbour and Bahari developments in Ocho Rios and Runaway Bay, with sales of Sol Harbour units set to commence in this fiscal year 

Manufacturing operations

Gross profit from manufacturing operations decreased by 27.4 per cent to US$3.7 million, down from US$5.2 million in 2024. The decline reflects a significant revenue reduction due to seasonal market challenges, which offset continued margin stabilisation and improved operating efficiency. 

The division continues to focus on cost optimisation and market diversification strategies.

PROVEN recorded improved net fair value adjustments and realised gains of US$0.9 million for the quarter, significantly higher than the US$0.06 million recorded in the corresponding quarter, reflecting better market conditions and portfolio management. 

Share of results of associates

The share of results from associates registered a US$0.8 million loss, a substantial improvement from the loss of US$1.8 million in the similar period last year. This represents an improvement from the prior year quarter, primarily driven by performance from JMMB Group and Access Financial Services Limited.

Operating expenses increased by 5.5 per cent year-over-year due to higher staff costs and other ordinary inflationary pressures, despite PROVEN’s execution of various cost management initiatives, which are still expected to contain these costs during the current year. Total assets increased by 7.6 per cent year-over-year to US$1.16 billion at June 30, compared to US$1.08 billion in the prior year quarter. 

This growth reflects notable increases in investment securities (10.8 per cent) and investment in associates (7.4 per cent). The asset mix demonstrates the Group’s continued focus on high-quality investments and strategic partnerships. 

Equity attributable to shareholders grew by 6.4 per cent to US$109.1 million at June 30, up from US$102.5 million in the prior year quarter. 

The improvement, according to management, reflects accumulated comprehensive income and the group’s focus on building long-term shareholder value.