PBS reports 33% increase in six months net profit

Date: August 14, 2019

Productive Business Solutions Limited (PBS) for the six months ending June 30, 2019 reported an increase in revenues from US$82.01 million for the 2018 period to US$85.08 million in 2019, 4% increase. For the quarter, revenues increased 3% to total US$41.53 million relative to US$40.49 million the prior corresponding quarter.

Direct expenses increased 2% to close the period at US$47.47 million when compared to US$46.33 million for the same period of 2018. As such, gross profit for the six months rose 5% to US$37.61 million (2018: US$35.68 million). PBS noted that, “the increase was attributed to incremental revenue and lower direct expenses due to revenue mix.”

Other income fell 40% to close at US$488,000 relative to US$814,000 in 2018. While, for the quarter, other income closed at US$341,000 (2018: US$645,000).

Selling, general and administrative expenses amounted to US$33.06 million (2018: US$32.20 million), an increase of 3%. As such, operating profit climbed 17% for the period to total US$5.04 million relative to the US$4.30 million in 2018. Operating profit for the quarter totalled US$2.32 million, a 6% increase on the US$2.19 million reported in 2018.

Finance costs climbed 13% to total US$3.82 million relative to US$3.38 million in 2018. Management stated, “this was primarily due to foreign exchange losses associated with the depreciation of the Jamaican dollar versus United States dollar in second quarter of 2018.” As such, profit before taxation amounted to US$1.22 million relative to a profit of US$920,000 in 2018.  For the quarter, profit before taxation closed at US$1.05 million (2018: US$690,000).

After taxation of US$1.03 million (2018: US$781,000) the company reported a net profit of US$185,000 relative to a profit of US$139,000 in 2018. Net profit for the quarter amounted to US$724,000 compared to a profit of US$372,000 in the corresponding quarter of 2018. Total Comprehensive income for the period attributable to shareholders was US$572,000 relative to the loss of US$548,000 reported the prior year.

For the period the company reported earnings per share (EPS) of US$0.0015 (EPS 2018: US$0.0011). The earnings per share for the quarter amounted to US$0.006 (EPS 2018: US$0.003). The twelve month trailing EPS was US0.01. The total number of shares employed in our calculations amounted to 123,272,727 units. The stock price closed trading on August 13, 2019 at US$0.60.

Balance Sheet at a glance:

As at June 30, 2019, PBS had total assets totalling US$156.63 million (2017: US$ US149.15 million) which represents an increase of 5%. This movement was mainly attributed to growth in ‘Property, Plant, and Equipment’ and ‘Due from related parties’ to close at US$23.87 million (2018: US$22.25 million) and US$7.30 million (2018: US$6.63 million), respectively. Also, ‘Trade and other receivables’ added to this increase amounting to US$47.89 million (2018: US$42.72 million).

Shareholders Equity amounted to $US34.43 million (2018: US$37.49 million) with a book value per share of $US0.28 (2018:US$0.30).


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