Proven’s half-year earnings dip amid COVID-19
Proven Investments Limited (PIL) made millions less for its half-year due to the COVID-19 pandemic.
“The trajectory of the economic recovery remains uncertain, as the negative effects of COVID-19 continue. However, PIL is well-positioned for recovery due to the continued implementation of its risk mitigation measures aimed at mitigating the impact along with maintenance of adequate liquidity levels,” said PIL.
Net Profit attributable to owners for the period amounted to US$4.7 million over six-months to September compared to US$24 million in the previous year.
The year-over-year decline in net profit primarily reflects decreases in net interest income and fees and commission income, emanated from a reduced equity holding in Access Financial Services Limited and lower business activity.
Access was 50 per cent owned by Proven but now it owns 25 per cent of it. The financials in 2019 benefited from a US$23 million gain on the Access sale of shares.
Nonetheless, PIL said its top priority remains centred on the continued growth of its private equity and real estate strategies through acquisitions and the protection of our stakeholders.
The company also noted that it performed “well” due to the diversity of its portfolio companies, which garners well for the resilience displayed during COVID 19.
Total assets amounted to US$621.9 million as at September 30, 2020, which decreased by 3.7 per cent from the US$645.6 million reported as at September 2019.
The year-over-year shift in the composition of total assets mainly emanated from a reduction in investment securities, investment property and resale agreements.
The decision to reduce the investment securities holding was deliberate in an effort to maximize liquidity position and reduce risk given the uncertainty of macroeconomic factors, Proven said.
Shareholder equity increased by seven per cent to US$121.9 million as at September 2020 from US$113.94 million as at September 2019. The change is attributed to a 10 per cent growth in retained earnings arising from core growth and the net impact of activities associated with selected portfolio assets.