Finance house, Prove Group’s latest restated financials shows it putting in an even better performance than previously reported.

Restated unaudited financial results reveal  Proven posted net revenue of US$17.74 million compared to US$15. 2 million for Q1 ( period ended June 30th, 2023). This represented a 17.3 per cent increase.

This generated a net profit of US$3.88 million compared to US$1.74 million for the corresponding quarter of 2022.

Where many of Proven’s competitors have seen their Net Interest Income crumble like a cookie, Proven’s  puffed up like a Pillsbury doughboy to US$4.96 million for the quarter under review. That’s an 82. 4 per cent increase over the US$2.72 million for the same quarter last year.

Many Jamaican finance houses have taken hits with fees and commissions as securities dealers feel the pain in this current paradigm.Proven was no exception – with this revenue line brininging in US$2.77 million a 15.2 per cent drop on the figure posted for Q1 last year. It’s been a terrible time for fee-based investment banking.

Proven saw a  pick up in Q1 with its Pension Fund Management income due to a recovery in asset prices. This uptick was US$953,000, a 12. 6 per cent increase.

For the first quarter ended June 30, 2023, Proven managed to contain expenses somewhat which rose to US$15.7 million compared to US$14.5 million for the corresponding quarter in 2022. Here Proven benefitted from a write back of IFRS 9 provisioning. 

Taking a look at gross profit on property sales, Proven’s Q1 results were driven by  profits from the sales of units at the Lagoons residential development in Grand Cayman which netted US$379,000 for the quarter ended June 30, 2023.

Proven remains upbeat and confident writing: “ Despite challenging economic and market conditions, the Group maintains a positive outlook for the upcoming financial year. The Group  is currently well positioned to extract much more consistent value from its varied revenue lines with; (a) the expected revenue growth from interest spread expansion and the upward re-pricing of the Group’s income earning assets; (b) improved gross margins in the manufacturing business (c) further expansion in assets under management and wealth management activities, (d) the completion and sale of additional real estate development projects such as AUISTA at Bloomfield and; (e) the improved performance of the portfolio of associated companies.

“The Group is encouraged  by the performance for the first quarter with net profit  growth of 122.7 per cent to US$3.88 million, compared to US$1.74 million over the same quarter last year. These results were derived from strong performance in most of the operating divisions, but particularly from the better than budgeted results of the banking division of the Group during the quarter. Earnings per Share (EPS) amounted to 0.49 U.S. cents per share for the quarter and represents an annualised return on average equity of 11.43 per cent.

Our Today spoke with Proven’s CEO Christopher Williams who is currently in the Cayman Islands. He is pleased with this quarterly performance surmising: “ I think we are settling in nicely. Twenty-four months ago we made some significant acquisitions and 12 months ago we underwent a restructuring exercise.

We are laser focused on our 4 pillars:

• Wealth
• Banking
• Private Capital 
• Properties 

“We are building out each pillar with a shared services platform.

“Proven is looking to revenue primarily through funds as opposed to the sale of securities. Now what do I mean by that? 

“The 90s and early 00s exploded with securities dealers making money on repos, stocks and bonds but this drove up back office costs. We at Proven have pivoted to funds which gives you diversification and management. This was one of the reasons for acquiring the Heritage Fund.

Williams continued: “Our banking operations are positioned at international banking marketing which attracts global funds, hence we have a presence in Cayman, St Lucia, BVI, Aruba, places where the cost of funds are fairly stable and there is little volatility. We continue to do well with our property arm and have some iconic developments. At this point in time, we have properties in Cayman, Barbados and Jamaica.

“We began with private capital, 13 years ago and it remains a core competence. This consists of:

• Access Financial
• JMMB
• Roberts( manufacturing in Barbados) 

“They are all doing well for us and we are sitting tight and sitting pretty. When you see me don’t say “Hey Willy!” Now you must call me “Growing cash EPS”

Proven now has assets of US$1 billion with operating cashflow before movements in working capital of US$5.6 million. Net cash from operating activities for the period ended June 2023 came in at US$46 million.