Senior Research Analyst at JN Group, Jahmar Brown, says investors should see an improvement in PROVEN Group’s financials over the next two quarters.

Speaking on Taking Stock with Kalilah Reynolds, Brown said that rising interest rates and overall inflation have severely impacted the company. 

PROVEN recorded a 71% drop in net profits for the first six months of the financial year, from US$5.99 million to US$1.71 million.

“The net profits outcome largely reflects the adverse impacts on asset prices caused by the increasingly inflationary environment accompanied by rising interest rates,” Brown said.

“According to PROVEN, grain price increases over the period and the integration of newly acquired companies were driving factors behind the company’s performance. 

PROVEN also reported a 67% increase in liabilities to US$933 million, up from US$558 million in the previous financial year. 

The Research Analyst noted that it was not all bad news as the company’s total income for the six months ending September 30 was up 60% from the previous year. Its assets also grew 46% to US$1 billion.

Brown also noted that performances from the acquisitions PROVEN made this year are not reflected on the company’s books.

“For this six-month period, we perhaps won’t see the immediate impact on profitability for the companies that they acquired this year,” said. 

In fact, PROVEN noted that the growth in both total assets and total liabilities resulted mainly from the acquisition of Proven Bank (Cayman) formerly Fidelity Bank Cayman.

More deals

PROVEN’s Investment arm recently signed a multimillion equity deal with Lititia Myers-Gray to form ECHE Limited, a strategic solutions company in the payments industry.

One of ECHE’s objectives is to optimise Jamaica’s ATM network through its information technology-enabled services and payment solutions.

WATCH THE DISCUSSION HERE