February 24, 2025

Productive Business Solutions Limited (PBS)

Unaudited financials for the twelve months ended December 31, 2024:

Productive Business Solutions Limited (PBS) for the twelve months ended December 31, 2024 reported an 18% increase in Revenue totaling US$387.56 million compared to US$327.61 million in the corresponding period last year. Revenue for the fourth quarter had a 5% increase to close at US$99.17 million compared to US$94.62 million for the comparable quarter of 2023.

Direct Expenses amounted to US$271.06 million (2023: US$225.54 million), this represents an increase of 20% year over year. Consequently, gross profit increased by 14% to US$116.51 million compared to US$102.07 million for the twelve months ended December 31, 2023. The company booked gross profit of US$36.76 million for the fourth quarter versus US$28.11 million reported for the similar quarter of 2023.

Other Income increased by 89% to close at US$4.85 million (2023: US$2.56 million), while Selling, General and Administrative Expenses increased by 15% from US$78.15 million in 2023 to US$89.97 million in the period under review. As a result, Operating profit for the twelve months ended December 31, 2024 amounted to US$31.39 million, a 19% increase relative to US$26.49 million reported in 2023.

Finance Costs for the twelve months ended December 31, 2024, amounted to US$18.35 million, a 29% decrease relative to US$14.17 million reported in 2023. Finance Costs for the fourth quarter amounted to US$6.15 million (2023: US$3.88 million). Share of investee’s profit or loss amounted to US$513,000 (2023: nil). Consequently, Profit before Taxation totaled US$13.56 million, a 10% increase from the corresponding period last year. (2023: US$12.31 million).

The tax charge for the twelve months ended December 31, 2024, amounted to US$5.06 million, a 20% increase relative to US$4.23 million reported in 2023. The tax charge for the fourth quarter amounted to US$2.29 million (2023: US$1.73 million).

Net profit attributable to shareholders for the twelve months ended December 31, 2024 had a 5% increase to reach US$8.40 million (2023: US$8.02 million). Total comprehensive income for the twelve months amounted to US$7.42 million, a 29% decrease from the US$10.49 million reported in 2023. For the fourth quarter, Total comprehensive income was US$5.29 million (2023: US$2.20 million).

Consequently, Earnings Per Share for the twelve months amounted to US$0.05 (2023: US$0.04), while Earnings Per Share for the quarter totaled US$0.03 (2023: US$0.01). The number of shares used in these calculations was 186,213,513 units.

Notably, PBS’s stock price closed the trading period on February 21, 2025 at a price of US$1.37 with a corresponding P/E ratio of 30.36x.

Balance Sheet Highlights

The company’s assets totaled US$398.93 million (2023: US$377.26 million). The movement in total assets was mainly influenced by a 24% increase in ‘Plant, property and equipment’ amounting to US$37.90 million (2023: US$30.60 million) and a 16% increase in ‘Inventories’ amounting to US$49.73 million (2023: US$42.94 million).

Shareholders’ equity was US$82.63 million (2023: US$76.52 million), representing a book value per share of US$0.44 (2023: US$0.41).

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