Proven Investments Limited posted net profit of US$29.98 million for the financial year ended March 31, 2020.
Results adjusted for the extraordinary gain and associated charges amounted to US$11.04 million, which represents a 61.26 per cent increase in core earnings from the US$6.85 million earned in the previous year.
Revenue sources for the company include three business segments: Private Equity, Real Estate and Treasury.
Associate company and private equity venture Proven Wealth Limited reported profit of US$2.51 million for the year ended March 31, 2020, up 8.3 per cent.
Revenue generated by the company totalled US$10.63. Pension Management income and interest income were the top performing line items during the year.
The report published this week indicates that the company’s diversification of its revenue streams and reduced reliance on the repo business resulted in non-interest income accounting for 74.41 per cent of its revenue.
Microfinance associate company Access Financial Services Limited (AFSL) contributed US$0.850 million to profit for the review period.
Subsidiary BOSLIL Bank Limited (BOSLIL) of which Proven Wealth owns 75 per cent grew net profit to US$4.64 million.
Subsidiary International Financial Planning Limited (IFP), a licensed securities dealer with offices in Cayman, Bermuda and the British Virgin Islands, reported revenues and net profit of US$5.66 million and US$0.73 million respectively.
Associate company JMMB Group Limited (JMMB) (which Proven acquired 20.01% of the participating voting shares in JMMB contributed US$10.35 million in the form of share of profits.
Proven noted in its report to shareholders that JMMB’s expanding presence in the on-shore 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 countries of the Caribbean and Latin America.
Associate company Dream Entertainment Limited in which Proven has a 20 per cent stake reported a marginal share of loss amounting to US$0.017M.
Proven said focus will shift to managing cash flow as it navigates the COVID-19 pandemic while realising the benefits of the restructuring initiatives undertaken in the prior year.
Subsidiary Real Estate Real Properties Limited (RPL) RPL reported profit attributable to equity holders of US$2.38 million, representing a year-over-year increase of 40.16 per cent.
The company’s portfolio of real estate holdings which as at March 31, 2020, included three rental income properties and six developmental sales projects; all at various stages of the development cycle.
The Treasury segment of the PIL’s operations generated profit attributable to equity holders of US$20.08 million (net of all intercompany income and charges) for the year ended March 31, 2020. This represented 67 per cent of total net profit of US$29.98 million reported for the year.
Proven said the performance of this segment was mainly attributable to the extraordinary gain of $24.93 million realised on PIL’s sale of 25 per cent of its holdings in AFSL in September 2019.
Net Interest income (NII) registered a loss of US$3.09 million largely reflecting debt servicing obligations associated with wholesale funding of the JMMB share acquisition. The loss on the net interest income line was partially offset by other income of US$1.45 million, which was driven by dividend income and foreign exchange translation gains.