Proven Investments Limited (PIL) reported net profit of US$4.80 million, down 17.49 per cent or US$5.81 million, for the six-month period ended September 30, 2020.
The year over year decline in net profit mainly reflects decreases in net interest income and fees and commission income, emanating from a reduced equity holding in Access Financial Services Limited and lower business activity, management stated in comments attached to its results.
The company operates under three distinct business strategies, namely Private Equity (Financial Services and Real Sector), Real Estate and Treasury.
Under its private equity business line, PIL acquired 20.01 per cent of the participating voting shares in JMMB. The associate company contributed US$3.24 million in the form of share of profit for the period ended September 30, 2020.
Management commented, “JMMB’s expanding presence in the onshore banking and insurance sub-industry within the region is consistent with PIL’s ongoing strategy to diversify the portfolio of investments across the twenty-four (24) countries of the Caribbean and Latin America.”
Proven Wealth reported profit attributable to equity holders of US$1.09 million on total revenues of US$4.97 million for the period ended September 30.
Pension Management income, fees and commission and interest Income were the top performing line items during the period.
PIL currently owns 75.0 per cent of the equity in BOSLIL Bank Limited. Net profit totalled US$5.28 million, resulting in US$3.93 million in profit.
Management said BOSLIL’s overall performance was mainly driven by growth in its core business, reflecting optimal asset-liability management and cost synergies which resulted in the Bank posting an increase of 71.5 per cent in net profit compared with the period ended September 30, 2019.
International Financial Planning Limited (IFP) IFP is a licenced independent investment advisor with offices in Cayman, Bermuda and the British Virgin Islands that caters to a variety of investors ranging from medium to high net worth individuals.
The company reported a net profit of US$0.03 million compared to US$0.45million earned in the same period last year.
The decline was attributed primarily due to a 37.5 per cent decline in the company’s revenue line item fees and commission.
As a result of reduced holdings from 49.72 per cent to 24.72 per cent in September 2019, Access Financial Services Limited (AFSL) is recognised as an associate company.
AFSL’s contribution for the period ended September 2020 amounted to US$0.10 million.
PIL acquired a 20.0 per cent stake in Dream Entertainment Limited (DREAM) In February 2019.
PIL said despite the closure of the sector due to COVID-19 mitigating guidelines on gatherings and crowd control, the Management of Dream remains confident and looks forward to the reopening of the Entertainment Sector.
Real Estate Real Properties Limited (RPL) RPL reported profit of US$1.34 million.
PIL states that this performance contributed 27.9 per cent to the Group’s net profit and represents a year over year decline of 1.1 per cent.
PIL said the decrease was mainly driven by a reduction in total income of 2.5 per cent, mainly due to a reduction in sales.
Total company assets stood at US$37.73 million as at September 30, 2020, which represents an 8.0 per cent increase compared to US$34.95 million reported as at September 30, 2019.
PIL said the company continues to diversify its portfolio of real estate holdings which as at September 30, 2020, included five rental income properties and six development sales projects, all at various stages of the development cycle.
The Treasury segment of the PIL’s operations generated a loss of US$1.68 million (net of all intercompany income and charges) for the period ended September 30, 2020.
Management said this was due to the deliberate shift in strategy to bolster liquidity via a sale of investment securities which resulted in a decline in net interest income.
They commented, “This segment should see a healthy return to growth due to the upcoming Additional Public Offering (APO) which is slated for later in this financial year.”
Net Interest income (NII) registered a loss of US$1.94 million largely reflecting debt servicing obligations associated with wholesale funding of the JMMB share acquisition.
Concluded, “The trajectory of the economic recovery remains uncertain as the negative effects of COVID-19 continues.
“However, PIL is well positioned for recovery due to its continued implementation of its risk mitigation measures aimed at mitigating the impact along with maintenance of adequate liquidity levels.”
The Board of Directors approved a quarterly dividend of US$0.0025 per share as of November 25, 2020 to be paid on December 3, 2020.