August 19, 2021

Productive Business Solutions Limited (PBS) for the six months ended June 30, 2021 reported a 41% increase in revenues from US$73.17 million for the 2020 period to US$103.06 million in 2021. For the quarter, revenues increased 72% to total US$53.72 million relative to US$31.26 million the prior corresponding quarter.

Direct expenses increased 80% to close the period at US$72.68 million when compared to US$40.49 million for the same period of 2020. As such, gross profit for the six months decreased 7% to US$30.38 million (2020: US$32.68 million). As for the quarter, gross profit amounted to US$14.78 million (2020: US$13.93 million).

Other income rose 32% to close at US$398,000 relative to US$301,000 in 2020. While, for the quarter, other income closed at US$308,000 (2020: US$254,000).

Selling, general and administrative expenses amounted to US$26.81 million (2020: US$28.92 million), a decrease of 7%.

As such, operating profit fell 2% for the period to total US$3.97 million relative to the US$4.06 million in 2020. Operating profit for the quarter totalled US$1.77 million, a 38% increase on the US$1.28 million reported in 2020.

Finance costs declined 20% to total US$3.50 million relative to US$4.39 million in 2020. As such, profit before taxation amounted to US$472,000 relative to a loss of US$330,000 in 2020. For the quarter, profit before taxation closed at US$53,000 relative to a pre-tax loss of US$450,000 in 2020.

After taxation of US$1.16 million (2020: US$809,000), the Company reported a net loss of US$684,000 relative to a loss of US$1.14 million in 2020. Net loss for the quarter amounted to US$538,000 compared to a loss of US$862,000 in the corresponding quarter of 2020. Total comprehensive loss for the period was US$978,000 relative to the loss of US$2.04 million reported the prior year.

For the six months ended June 2021, net loss attributable to shareholders amounted to US$726,000 relative to a loss of US$1.21 million in 2020. While for the quarter, net loss attributable to shareholders totalled US$580,000 compared to a loss of US$1.15 million.

For the period the company reported loss per share (LPS) of US$0.0059 (2020: LPS of US$0.0098). The loss per share for the quarter amounted to US$0.0047 (2020: LPS of US$0.0093). The twelve-months trailing LPS was US$0.015. The total number of shares employed in our calculations amounted to 123,272,727 units. The stock price closed trading on August 18, 2021 at US$0.77.

Balance Sheet at a glance:

As at June 30, 2021, PBS had total assets totalling US$186.26 million (2020: US$178.67 million) which represents an increase of 4%. This movement was mainly attributed to growth in ‘Trade and other receivables’ to close at US$62.12 million (2020: US$48.10 million).

Shareholders Equity amounted to US$31.74 million (2020: US$33.11 million) with a book value per share of $US0.26 (2020:US$0.27).

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