Proven Investments Limited (Proven) has been granted regulatory approval from various applicable jurisdictions to acquire 100 per cent of the common equity of a licensed security dealer with offices in the Cayman Islands and the Caribbean region.
While not furnishing many details, Proven has advised that the transaction is expected to close by the end of this month. The acquisition will not only broaden Proven’s portfolio into Cayman and the northern Caribbean, but will also open up the company to high capital income from Cayman’s history of being a strong wealth management market.
“We are happy with the price and confident that this is good value for money,” Proven President and CEO Christopher Williams told journalists during the company’s press briefing for its first quarter results ended June 30, 2018.
The press briefing was held at Proven Management Limited’s 53 Lady Musgrave Road office in Kingston on Wednesday.
Williams said that the development aligns with the business’ continued focus on acquisition and is expected to positively impact bottom line by 20 per cent.
He also announced that Proven’s real estate arm, Proven REIT, is looking to fill significant housing demands from the local and international markets with the acquisition of a two-acre property, formerly occupied by Red Bones, on Braemar Avenue in New Kingston. That will bring to five the number of residential developments for the entity.
Proven REIT sold its first set of residential units on Kingsway in St Andrew before selling a second set of units at Sullivan Avenue. The third and fourth developments sit on Millsborough Avenue in Kingston 6. The real estate company has partnered with Matalon Homes for the construction of the third development which is expected to be completed by December 2019. Thereafter, Proven REIT plans on constructing villas for the fourth development, which will have its ground-breaking later this year.
“Our development in conjunction with Matalon is high-income homes, which is approximately 80 per cent sold-out,” Williams said. “We’ve found the real estate market to be extremely strong and that obviously is as a result of the lower interest rates that are out there in the market and the stability of the Jamaican economy.”
He added that the company has seen significant demand from diaspora residents looking for retirement homes in Jamaica, which supports the company’s belief that the Braemar development will be as successful as the Millsborough development.
Williams, in boasting about the company’s performance for its first quarter ended June 2018, named Access Financial Limited and Boslil Bank Limited as stars for the quarter. Boslil, an offshore bank based in St Lucia, was acquired by Proven at the end of the 2016/17 financial year. The bank continued its growth trajectory contributing net profit of US$0.61 million and total assets of US$271 million.
“We have put a lot of focus on Boslil and have strengthened our sales team in the Caribbean as well as the Latin America region. Boslil has a branch in Panama and Uruguay and we have put a team in place at both branches that we think will deliver growth for us. Just coming out of the first quarter we are happy with the performance of the team,” he said.
Access Financial Services Limited contributed considerably to the results of the group with net profits attributable to Proven of US$0.79 million. It represents an increase of 20.55 per cent when compared to the same quarter of 2017.
Proven Wealth Management’s net income totalled US$1 million for the quarter, representing a more than six-time increase compared to the same period last year, while Proven Fund Managers increased profitability by 67.57 per cent compared to the same period last year with net profit of US$0.22 million for the first quarter.
For the period, Proven reported net profit of US$1.8 million, an increase of 58 per cent from US$1.13 million earned quarter over quarter. Revenue for the quarter ended June 30, 2018 saw a 17.39 per cent increase to US$8.52 million, compared to US$7.25 million. Williams attributed the growth to more efficient carry trade strategy and significant improvement in foreign exchange gains.