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Proven grows 2Q profit 40%

Published:Friday | November 11, 2016 | 12:00 AM
Christopher Williams, CEO of Proven Management Limited.

Financial outfit Proven Investments Limited made US$2.8 million net profit for its second quarter ending September, up 40 per cent year-on-year.

The increased profitability over the period came from a jump in revenues from existing streams of business. Proven earns from a suite of investment in its associated companies, trading and real estate investments.

The increase in net revenue comes mainly from trading gains compared to last year "where markets were extremely volatile", said the company, led by Christopher Williams.

Over six months, Proven earned US$5.3 million on US$14.3 million or 39 per cent more profit year-on-year.

Realised gains from the trading of securities for the period amounted to US$1.98 million, increasing eightfold when compared to US$250,000 million for the same period last year. Net foreign exchange gains increased by 87.4 per cent to US$1.88 million from US$1 million reported for the period ending September 2015, as a result of the 8.22 per cent depreciation of the Jamaican dollar.

"We continue to monitor the investment arena and strategically adjust our positioning to take advantage of opportunities that fit our risk-reward criteria, diversifying our portfolio across fixed-income sectors and non-bond sources of income with varied risk exposures to lower volatility, while enhancing our expected risk-adjusted returns," said Proven.

The company announced plans earlier this year to secure private equity deals with overseas entities. Those deals are yet to be announced as negotiations continue. Its current portfolio of private equity investments includes three companies: Proven Wealth Limited, Proven Fund Managers Limited (formerly Proven Wealth Transition Limited), and Access Financial Services Limited.

Proven Wealth experienced a "successful" six months, with profits up to US$1.1 million, as the firm continued its strategy to offer products which appeal to clients, while reducing its reliance on government repurchase agreements.

As for Proven Fund Managers Limited, its profitability improved to US$390,000 during the quarter ended September 2016 as a result of improved efficiency following the amalgamation with Proven Wealth Limited, the company stated.

Microfinancing firm Access Financial produced net profits of US$2.92 million for the September quarter, representing a 34.8 per cent increase in US dollar terms over the prior year's results. The loan portfolio at Access was US$18.9 million, having increased 15 per cent year-on-year.

Proven also operates Proven REIT Limited, a wholly owned subsidiary in the business of real estate. The company successfully completed and sold its initial residential development on Kingsway Avenue in Kingston and is currently pursuing two more residential developments in Kingston, one at Sullivan Avenue to be completed by March 2017, and the other at Millsborough Avenue, which is expected to break ground by February 2017.

"The company also continues closely monitor the local and international real estate markets for new opportunities," said Proven.