- For the financial year ended March 31, 2025 (FY2025), PROVEN’s unaudited earnings to shareholders totalled US$2.57Mn, reflecting a 79.1% decline from the US$12.27Mn for FY2024. The falloff occurred despite an operating profit rebound, as its share of profits of associates is down 63.8%.
- The group’s operating profit rebounded from a US$1.06Mn loss to a profit of US$1.19Mn, supported by marginal operating revenue growth, up 0.4% to US$55.06Mn and lower operating costs, down 3.3% to US$53.87Mn.
- Operating revenue benefited from an 8.8% increase in manufacturing revenue growth to US$18.41Mn and a 20.7% rise in fees and commissions to US$11.43Mn. The Manufacturing segment was supported by commodity prices and product diversification, while fees and commissions were driven by the recovery in trading volumes and commission-driven activities within the wealth segment. The group also saw an 11.6% improvement in its management income to US$4.33Mn. However, most of this growth was negated by an 8.9% decline in net interest income (NII) to US$16.14Mn and gross losses from property sales totalling US$1.08Mn.
- The group’s operating cost savings were more significant than revenue growth, led by savings on staff costs. PROVEN’s staff costs declined by US$5.18Mn (17.5%) to US$24.37Mn, following a restructuring and consolidation exercise in FY2024. Still, these savings were partly offset by a US$3.66Mn (18.9%) increase in other operating expenses.
- Despite the higher operating profit, groupwide and shareholders’ profits – which exclude non-controlling interest were hit by a US$9.67Mn decline in share of profits from associates. PROVEN’s share of profits was primarily attributable to its 20% stake in JMMB Group Limited (JMMBGL), whose profits also softened off the back of a lower share of profits from associates. Last year, JMMBGL, which owns 24.5% of Sagicor Financial Company (SFC), benefited from one-off gains when SFC purchased Canadian insurance firm IVARI at a bargain. In the absence of these gains, JMMBGL’s shareholder profits were down 69.5% to J$3.51Bn for FY2024.
- At market close on Wednesday, Proven’s JMD stock price was J$17.62, down 18.0% since the start of the year. At its current price, the company trades at a P/B of 8.85x, which is below the average of 1.20x for the Main Market Financial Sector Average.
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1Net Income Attributable to Noncontrolling Interest refers to the portion of a company's profits that belongs to minority shareholders or noncontrolling interest in a subsidiary. Noncontrolling interest is the ownership percentage of a company's subsidiary that is not owned by the parent company.
(Sources: PROVEN Financial Release & NCBCM Research)