November 16, 2020
Productive Business Solutions Limited (PBS) for the nine months ended September 30, 2020 reported a 15% decrease in revenues from US$132.20 million for the 2019 period to US$112.70 million in 2020. As for the quarter total revenue declined by 16% to US$39.54 million from US$47.12 million booked twelve months earlier.
The company noted, “There is an important shift in the revenue towards our IT portfolio and PBS remains upbeat that our strong pipeline will help us navigate these challenging times. PBS has signed various important agreements in the Caribbean and Central America. These transactions will be reflected in subsequent quarters.”
Furthermore “the rebound in revenue reflects countries opening up their economies during this time period. In the 16 countries that PBS operates in, as of September 30th; 6 were completely open, and the balance were all in various stages of reopening their economies. As the countries continue to reopen their economies, we can expect an additional favorable impact to our revenue,” as per PBS.
Direct expenses decreased 13% to close the period at US$64.44 million when compared to $74.12 million for the same period of 2019. As such, gross profit for the period under review decrease 17% to close at US$48.26 million (2019: US$58.08 million). Gross profit for the quarter amounted to US$15.59 million (2019: US$20.47 million).
Other income rose by 10% totalling US$712,000 relative to US$650,000 in the prior corresponding period.
Selling, general and administrative expenses amounted to US$42.41 million (2019: $51.05 million), reflecting a 17% year over year decline.
However, operating profit went down 15% for the period to total US$6.56 million relative to US$7.68 million in the prior comparable period. As for the third quarter, operating profit closed at US$2.50 million (2019: US$2.64 million).
Finance costs increased 3% to total US$6.48 million versus US$6.31 million in 2019. PBS stated, “Finance Costs in Q3 2020 were favorable versus 2019 due to the renegotiated bond interest rates and lower interest associated with lease liabilities, offset partially by foreign exchange losses. Foreign exchange losses for the nine months ended September 30, 2020 are US$0.4 million unfavorably higher in comparison to the same period of 2019.”
As such, profit before taxation amounted to US$88,000 relative to a profit of US$1.36 million in 2019. As for the quarter, profit before taxation closed at US$418,000, relative to a profit of US$145,000 booked in 2019.
After taxation of US$1.36 million (2019: US$1.28 million), the Company reported net loss of US$1.28 million (2019: net profit US$83,000). The third quarter reported a net loss of US$137,000 (2019: US$102,000).
Net loss attributable to shareholders amounted to US$1.32 million for the nine months ended September 30, 2020 versus a net profit attributable to shareholders of US$83,000 in the comparable period last year. As for the quarter, net loss attributable to shareholders amounted to US$114,000 (2019: US$90,000).
Total comprehensive loss for the period was US$3.21 million versus an income of US$219,000 in the same period last year. The third quarter comprehensive loss closed at US$1.17 million (2019: US$352,000).
For the period the company reported a loss per share (LPS) of US$0.011 (EPS 2019: US$0.0007). The third quarter LPS totalled US$0.0009 (2019: US$0.0007), while twelve month trailing EPS was US$0.007. The total number of shares employed in our calculations amounted to 123,272,727 units. The stock price closed trading on November 13, 2020 at US$0.75.
Balance Sheet at a glance:
As at September 30, 2020, PBS had total assets totalling US$174.51 million (2019: US$178.66 million), which represents a decrease of 2%. This movement was mainly attributed to a reduction in ‘Inventories’ and ‘Right of Use’ which closed at US$36.15 million (2019: US$42.67 million) and US$13.89 million (2019: US$16.72 million), respectively.
Shareholders Equity amounted to US$32.01 million (2019: US$34.09 million) with a book value per share of US$0.26 (2019: $0.28).
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