November 15, 2023
In United States dollars (except where it is indicated otherwise)
Productive Business Solutions Limited (PBS) for the nine months ended September 30, 2023, reported a 2% increase in Revenue totaling US$232.99 million compared to US$227.49 million in the corresponding period last year. Revenue for the third quarter had a 4% uptick to close at US$72.24 million compared to US$69.38 million for the comparable quarter of 2022.
Direct Expenses amounted to US$159.03 million (2022: $156.84 million), this represents an increase of 1% year over year. Consequently, gross profit increased by 5% to US$73.96 million compared to US$70.65 million for the nine months ended September 30, 2022. The Company recorded gross profit of US$24.96 million for the third quarter versus US$24.24 million reported for the similar quarter of 2022.
Other Income year to date inched up 10% to close at US$2.36 million (2022: US$2.15 million), while Selling, General and Administrative Expenses rose 13% from US$51.55 million in 2022 to US$58.00 million in the period under review. As a result, operating profit for the nine months ended September 30, 2023 amounted to US$18.32 million, a 14% decrease relative to US$21.26 million reported in 2022.
Finance Costs for the nine months ended September 30, 2023, amounted to US$10.29 million, relative to US$12.74 million reported in 2022.
Profit before Taxation totalled US$8.03 million (2022: US$8.52 million). a 6% decrease from the corresponding period last year. For the quarter, Profit before tax amounted to US$1.93 million (2022: US$3.86 million).
Taxation for the nine months ended September 30, 2023, amounted to US$2.50 million, a 40% decrease relative to US$4.20 million reported in 2022.
Net Profit for the nine months ended September 30, 2023, had a 28% increase to reach US$5.53 million (2022: US$4.32 million). For the third quarter, Net Profit was US$1.19 million (2022: US$1.96 million). Net profit attributable to shareholders for the nine months ended September 30, 2023, amounted to US$5.47 million compared to US$4.29 million twelve months earlier.
Consequently, Earnings Per Share for the nine months amounted to US2.91cents (2022: EPS: US2.28 cents), while Earnings Per Share for the quarter totaled US0.63 cents (2022: EPS: US 1.05 cents). The twelve-month trailing EPS was US5.17 cents and the number of shares used in these calculations was 186,213,523.
Notably, PBS’s stock price closed the trading period on November 15, 2023, at a price of US$1.55 with a corresponding P/E ratio of 29.97x.
Balance Sheet Highlights
The company’s assets totalled US$384.74 million (2022: US$387.06 million). The movement in total assets can be attributed to ‘Inventories’ falling 19% to US$43.56 million, while ‘Property plant and equipment’ increased 13% to US$33.00 million and ‘Long term receivables’ increased 1179% to close at US$4.90 million.
Shareholder’s equity was US$109.68 million (2022: US$104.92 million), representing a book value per share of US$0.60 (2022: US$0.56).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.