SSL ponders ‘correct direction’ for Muse 360
Published:Wednesday | August 28, 2019 | 12:32 AM
SSL Venture Capital Jamaica Limited is moving to have management and structural changes of Muse 360 Integrated ratified by its board, following the resignation of the investment holding’s CEO and founder, André Burnett.
Muse 360 is one of four investment holdings for SSL Ventures. Burnett, in explaining his decision to part ways with Muse 360, previously told the Financial Gleaner that it was largely based on the fact that his vision for the company did not align with others in the company. His resignation took effect on August 1.
The company, which is known for the development and management of creative content, is currently undergoing a “radical change” in management and structure and raked in losses of $5.1 million for the quarter ended June 30, 2019, according to the unaudited financials of SSL Ventures.
“This will allow for the company to have an about right face turn into the correct direction allowing for increased shareholder value. We intend to have these changes discussed and ratified by the board of directors in the upcoming quarter,” chairman and CEO of SSL Ventures, Mark Croskery, said. “Once finalisation of the plan has been achieved, this will be communicated to the market,” he added.
Despite reporting losses for Muse 360, SSL Ventures has reported profit of $10.6 million for the quarter with hopes to improve bottom line results over the next quarter through Blue Dot Data Intelligence Limited, in which SSL Ventures holds a 50 per cent stake.
SSL Ventures’ growth in net profit was led by revenues which totalled $132.1 million for the quarter under review.
Bar Central Limited, the distribution company in which SSL Ventures holds a 75 per cent stake, generated the highest revenue at $90 million with related net profit for the quarter at $9.3 million. Revenue for Blue Dot stood at $18.6 million with profit of $2.5 million at the end of the three-month period under review.
SSL Ventures closed the quarter with assets of $299 million and cash of $17.5 million.
“The sector in which Blue Dot operates shows potential in both local and overseas markets, and as such improved strategies will be used to ensure realisation of growth,” Croskery told shareholders in a statement accompanying the company’s financials.
“Both Blue Dot and SSL Venture Capital are committed to improve overall performance and growth. Blue Dot also achieved a Series B investor which adds shareholder value and demonstrates the strength of Blue Dot. This also increases the intrinsic value of Blue Dot simultaneously with the value of SSLVC holdings,” he continued.
On July 23, Craig Hendrickson, managing director of Crave Manufacturing and Distribution Company and son of National Bakery head Gary ‘Butch’ Hendrickson, acquired a 20 per cent stake in Blue Dot for US$1.1 million.
Hendrickson’s investment in the data analytics company will assist Blue Dot in expanding its service offerings both locally and overseas.
Croskery noted that Bar Central went through some operational and structural improvements during the quarter, which should allow the company to perform more efficiently and improve overall earning potential while reducing expenses.
SSL Ventures was formed from a reverse takeover of failed music publishing outfit C2W Music Limited which allowed the listed junior market company to restructure as a venture capital investor. The company began trading in August 2018 and subsequently announced investments in Bar Central, Muse 360 and Blue Dot.
On August 9, SSL Ventures announced that it has finalised a transaction for an associate stake of 20 per cent in Alpha Imaging Limited, which intends to set up a US$3 million (J$405 million) radiology office at Tangerine Place in Kingston.
SSL Ventures started trading on the market in August 2018 but had its shares suspended on June 24 following an adverse report from its auditor for year ending December 2018. On August 15, the Jamaica Stock Exchange advised of the continued suspension of trading in the shares of SSL Ventures, giving the company more time to update its financial records.
“SSL Ventures continues to work with the three aforementioned companies to execute its mandate to realise shareholder returns via an exit through an IPO or private sale within three years. This quarter has been focused on improving operations and building intrinsic value for the companies,” Croskery said.