Date: November 14, 2018
Productive Business Solutions Limited (PBS) for the nine months ending September 30, 2018 reported a slight increase in revenues fromUS$127.71 million for the 2018 period to US$125.64 million in 2017, a 2% increase. For the quarter, revenues increased 5% to total US$44.24 million relative to US$42.24 million the prior quarter.
Direct expenses increased 3% to close the period at US$74.11 million when compared to US$71.97 million for the same period of 2017. As such, gross profit for the nine months marginally declined by 0.1% to US$53.60 million (2017: US$53.67 million). PBS mentioned that this was due to the, “impact of product mix versus the corresponding 2017 period.”
Other income improved by 70% to close at US$912,000 relative to US$538,000. For the quarter, other income closed at US$128,000 (2017: US$155,000), a 17% decline.
Selling, general and administrative expenses amounted to US$49.36 million (2017: US$50.08 million), a slight 1% decline. As such, operating profit went up by 25% to total US$5.16 million (2017: US$4.13 million). For the quarter, operating profit totalled US$861,000 relative to a loss of US$441,000 reported in the prior corresponding quarter.
Finance costs declined 20% to total US$5.19 million relative to US$6.48 million in 2017. The Company stated this was, “due to foreign exchange gains associated with the depreciation of the Jamaica dollar versus the United States dollar.” As such, loss before taxation amounted to US$33,000 relative to a loss of US$2.35 million in 2017. For the quarter, loss before taxation was recorded at US$951,000 versus US$2.85 million in the previous year’s comparative quarter.
After taxation of US$1.31 million (2017: US$ 784,000), the Company reported a Net loss of US$1.34 million compared to a loss of US$3.14 million in 2017. Net loss for the quarter amounted to US$1.48 million compared to a loss of US$2.99 million in the corresponding quarter of 2017. Total Comprehensive Loss for the period attributable to shareholders was US$3.08 million relative to a loss of US$3.41 million reported in the prior year’s comparable period. Total comprehensive loss for the quarter amounted to US$2.53 million relative to US$3.15 million reported for the third quarter of 2017.
The Company reported loss per share (EPS) for the nine months period of US$0.0109 (EPS 2017: US$0.0254). The loss per share for the quarter amounted to US$0.012 (LPS 2017: US$0.024). The twelve-month trailing LPS was US0.024. The total number of shares employed in our calculations amounted to 123,272,727 units. The stock price closed trading on November 13, 2018 at US$0.59.
Balance Sheet at a glance:
As at September 30, 2018, PBS recorded Total Assets totalling US$149.76 million (2017: US$144.76 million), representing a 3% increase year over year. This movement was mainly attributed to a 28% and 95% growth in ‘Property, Plant and Equipment’ and ‘Lease Receivables’ to close at US$22.76 (2017: US$17.75 million) and US$1.96 million (2017: US$1 million), respectively. Inventories and trade and other receivables also contributed to the overall movement to close at US$35.67 million (2017: $33.35 million) and US$46.50 million (2017: $43.88 million) respectively. This was however offset by the 77% decline in ‘Cash and Cash Equivalents’ to close the period at US$2.42 million (2017: US$10.64 million).
Shareholders’ Equity amounted to US$34.94 million (2017: US$39.84 million), which translated in a book value per share of US$0.28 (2017: US$0.32).
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