Chalked up small profit of $5.3 million following quarterly losses

Durrant Pate/Contributor

MFS Capital Partners Limited, formerly SSL Venture Capital Limited, has seen a turnaround in fortunes with the company achieving profitability in the September quarter following a string of quarterly losses.

SSL VC was sold to Micro-Financing Solutions in May this year for J$38 million, which at the time was one-tenth of the market value of shares said to be worth J$512 million on the stock market. With the September quarter being the first under new management, MFS Capital Partners recorded a small after-tax profit of J$5.3 million.

This profitability resulted from a new revenue stream of receivables financing. Revenues for the quarter went up to $12.5 million, due to the venture capitalist and micro financier successfully completing its first receivables financing transaction.

The management reports that MFS Capital Partners “will continue to align itself within the market to realise more business opportunities that will ensure growth”.

Positive outlook for more profitability

The management is positive about the company’s outlook noting that, “MFS is strategically positioning itself in the market to attain more profits. We are on target in achieving certain milestones outlined in our June quarter results as well as our annual report”.

These include refining MFS Capital Partners’ business model, which is an ongoing mechanism to ensure efficiency as well as successfully embarking on the final stage of its strategic acquisitions. Administrative and operational expenses came out at J$5.8 million for the quarter under review.

This is in addition to the finance related costs of $150,000, bringing overall expenses to J$6.03 million. The expenses incurred relates to the operating costs for the SSL Venture Capital head office and obligations of its closed subsidiary, Bar Central Limited.

Taxation amounted to J$810,295, down from the J$950,999 incurred last year. Total assets stood at $72.6 million for the September quarter with total liabilities at $115.9 million and shareholders’ equity at a negative J$43.2 million. Profit per stock unit for the quarter was J$0.014 per share.