Proven Investments Limited (PIL) says its 20 per cent equity acquisition in Dream Entertainment Limited is part of its strategic aim to diversify with investments in real sector companies.
The stake was bought for total of J$75.28 million. PILS directors in the company’s nine-month report released this week that the acquisition is “consistent with its strategic thrust to identify, invest in and grow, viable real sector private companies.
They noted, “Dream Entertainment Limited has over the years provided enviable entertainment products that cater to a growing audience that is primarily beyond the Jamaican shores.”
PIL in the nine-month report for the period ended December 2019 also indicates that associate company JMMB Group Limited boosted earnings.
PIL acquired 20.01 per cent of the participating voting shares in JMMB Group Ltd in December 2018. As an associate company of PIL contributed US$5.62million in the form of share of profits for the period ended September 30, 2019.
A summary of PILS unaudited statements for the nine months directors reported net profit attributable to owners of the company (NPAO) for the period amounted to US$26.45 million, while NPAO adjusted for the extraordinary gain and associated charges amounted to US$8.47 million.
This is a 43.50 per cent increase in core earnings from the US$5.90 million earned in the same period last year.
Proven’s private equity arm Proven Wealth Limited (PWL) PWL reported profit of US$2.39 million for the period ending December 31, 2019, contributing nine per cent to group revenues.
In 2019, PIL cut its shareholding in Access Financial Services Limited (AFSL) in half, resulting in reduced holdings from 49.72 per cent to 24.72 per cent in September 2019.
Accordingly, AFSL is now treated as an associate company resulting in the recognition of a share of its profits. The microfinance company contributed US$1.05 million for nine months to December 2019.
“Dream Entertainment Limited has over the years provided enviable entertainment products that cater to a growing audience that is primarily beyond the Jamaican shore.”– Proven Investments Limited
PIL currently owns 75 per cent equity of Boslil Bank Limited, a company in Saint Lucia, which contributed US$3.16 million in profit attributable to shareholders.
PIL acquired a 100 per cent interest in International Financial Planning Limited in IFP in August 2018.
IFP is a licensed securities dealer with offices in Cayman, Bermuda and the British Virgin Islands. The company reported revenues and net profit of US$4.38 million and US$0.99 million respectively.
PIL also pursues real estate ventures under Real Estate Real Properties Limited. Net profit attributable from this company was US$1.43 million for the nine months.
PIL says the subsidiary continues to diversify its portfolio of real estate holdings which as at December 31, 2019, included three rental income properties and eight developmental sales projects; all at various stages of the development cycle.
PIL’s proprietary treasury segment generated net profit attributable of US$12.13 million for the period ended December 31, 2019.
The performance of this segment was mainly attributed to the extraordinary gains of $23.97 million realized on PIL’s sale of 50.28 per cent of its holding in AFSL.