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Proven projects strong profit growth from JMMB investment

Published:Wednesday | June 12, 2019 | 12:11 AMSteven Jackson/Senior Business Reporter
Christopher Williams, CEO of Proven Management Limited.
Christopher Williams, CEO of Proven Management Limited.

Proven Investments Limited, PIL, is projecting significant profit growth this year when its investment in financial conglomerate JMMB Group would be fully factored into its financials.

JMMB contributed US$1.3 million to Proven’s bottom line for the period ending March 2019.

“So JMMB at last year’s run rate would give nearly US$6 million,” said Christopher Williams, CEO of Proven Management Limited, the management company for PIL, in a reflection of what the investment could mean for Proven’s earnings for this financial year, which wraps up at end-March 2020.

For its financial year ending March 2019, Proven Investments made US$6.97 million in net profit attributable to owners of the company, representing ­double-digit growth of 22.6 per cent. Net revenue rose 4.3 per cent to US$37.72 million.

In December, PIL acquired a 20 per cent stake in financial conglomerate JMMB Group Limited for $9.2 billion. Six months later, that stake is worth over $13 billion, based on the share price movement. The acquisition resulted in PIL becoming the largest individual shareholder in JMMB. The stock has climbed from $28.25 per share at the date of acquisition to $39.37 as of Monday.

PIL also acquired a 20 per cent stake in Dream Entertainment, the entity that stages a series of parties on the north coast and operates the Xodus carnival road band. Williams sees the value of Dream as growing at least fivefold in the coming years. The company is valued at US$2.8 million, with PIL holding US$570,000.

“I think that festivals in Jamaica are still small. We think Dream can create an international-type festival for Dream Weekend and Xodus, where it will become a mega event attracting over 100,000 patrons. At that stage it would grow revenues by five to ten times what they are now. Now the company has the backing from PIL to take it to the next level,” said Williams.

PIL remains cash rich with over US$69 million, which it hopes to deploy in the coming quarters.

“We continue to hunt for deals, or we may pay down debt,” said Williams.

Proven Investments holds US$625 million in total assets, up from US$576.9 million a year earlier. Shareholder equity stands at US$115.7 million, up from US$107.4 million.