Home Businessuite Markets SSL Venture Capital Jamaica Reporting Turnaround Second Quarter Net Profit Of JA$10.6M
SSL Venture Capital Jamaica Reporting Turnaround Second Quarter Net Profit Of JA$10.6M

SSL Venture Capital Jamaica Reporting Turnaround Second Quarter Net Profit Of JA$10.6M

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SSL Venture Capital Jamaica Limited having completed its second quarter of operations for 2019 is reporting that the Group achieved total revenues of JA$132.1 million and a Net Profit of $10.6 million for the quarter ended 30 June 2019 compared to a Net loss of $1.4 million in prior year quarter.

Commenting on the results chairman & CEO Mark Croskery said that it should be mentioned at this time that the comparative would not have reflected the three Investment Holdings, namely Bar Central Limited, Blue Dot Data Intelligence Limited and Muse 360 Integrated Limited, which were acquired in the second half of 2018.

In his review of the three individual Investment Holdings, Mr. Croskery reported that Bar Central Limited (BCL) generated revenues for the quarter of $90.0 million and a net profit of $9.3 million, which he said resulted from Cost of Sales of $88.2 million and Administrative and General Expenses of $37.2 million with other income of $44.4 million.

During this quarter, BCL experienced some operational and structural improvements whereby internal procedures were revamped for the period. This will therefore allow the company to perform more efficiently and improve overall earning potential and reduce overall expenses he reported.

In the case of Blue Dot Data Intelligence Limited (BDDI), this investment generated revenues for the quarter of $18.6 million and a Net Profit of $2.5 million, which resulted from Other Income of $21.0 million and direct Costs of $15.4 million and Administrative and General Expenses of $21.6 million.

The sector in which Blue Dot operates, he said shows potential in both local and overseas markets and as such improved strategies will be used to ensure realization of growth.

Blue Dot also achieved a Series B investor, which he said adds shareholder value and demonstrates the strength of BDDI. This also increases the intrinsic value of BDDI simultaneously with the value of SSLVC holdings.

SSL Venture Capital Jamaica had announced earlier this month it had acquired equity, and has taken on a new investor, businessman Craig Hendrickson, who acquired a 20 per cent share in the company for a capital injection of US$1.1 million.

A Series B round of investments are done to take the businesses to the next level, past the development stage, with investors helping the startup get there by expanding market reach.

Companies that have gone through seed and Series A funding rounds have already developed substantial user bases and have proven to investors that they are prepared for success on a larger scale. Series B funding is used to grow the company so that it can meet these levels of demand.

SSL Ventures, which previously held a 50 per cent share, reduced its stake to 40 per cent of Blue Dot under the deal, but remains the company’s single largest shareholder.

In the case of Muse 360 Integrated Limited, this company generated revenues for the quarter of $23.3 million and a Net Loss of $5.1 million, which resulted from Direct Costs of $9.0 million and Administrative and General Expenses of $24.5 million.

Muse 360 Integrated he said is currently undergoing a radical change in management and structure, which will allow for the company to have an about right face turn into the correct direction allowing for increased shareholder value.

He intends to have these changes discussed and ratified by the Board of Directors in the upcoming quarter and once finalization of plan has been achieved this will be communicated to the market.

SSL Ventures closed the quarter an improved earnings per share of two cents.

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