More profit for Proven

Proven Investments reported profit to owners of the company of US$8.721 million up from $2.344 million in 2016, but it is not as simple as it first appears. To get a good picture as to what is the true ongoing earnings investors have to dissect to numbers and add to and deduct to get the real picture.
First, there is an US$8 million gain from the difference in net value $20.63 million acquired from Bank of St. Lucia International, over the amount paid of $12.6 million. The managing director got shares in the new subsidiary which resulted in a charge to income of $3,244 million, adjusting for these two items would leave shareholders with profit of $4 million. Reversal of Impairment loss on investments resulted in profit being boosted by $921,000 in 2017 compared to a hit of $1.744 million in 2016 and realized gains on investment of $10.756 passed through other comprehensive income and not reflected in the regular profit.According to Proven Chief Executive Officer, Christopher Williams, there are expenses incurred in the acquisition of Bank of St. Lucia amounting to US$2 million and some of the preference share dividend was incurred as a result of the planned acquisition and would need to be adjusted for.
When all adjustments are factored in the investment company enjoyed earnings of $15.8 million from normal operations or earnings per share of 28.7 us cents. Stripped of all the one off type income and expenses, earnings come out at $5.04 million, excluding the added preference share dividend. The company has nearly $12 million of losses relating a fall in the value of investments and foreign exchange translation losses, not booked through normal profits.

Christopher Williams, Proven Investments CEO.

The foreign exchanges losses Williams states relates to the acquisition of Access has gone up in value but is on the books at cost of J$9 per share versus $50 currently. The regular profit statement shows earnings adjusted for one off items coming, in at 0.09 cents per share and puts the PE ratio at 2 times 2017 earnings, falling to 14 times estimated 2018 earnings.
Access Financial Services is playing an increasing role in the financial fortunes of the company with a 47 percent increased profit in Jamaican dollars, for the 2017 fiscal year, according to Williams Bank of St. Lucia which made US$3 million profit for 2017 is expected to deliver US$4 million in 2017. If Proven maintains the performance of its core business and delivers on the promise of Access and Bank of St. Lucia then earnings from ongoing operations should end up around US$12 million or 0.021 US cents per share. The stock traded at 28.5 US cents on Tuesday on the Jamaica Stock Exchange.

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