Date: November 13, 2019
Productive Business Solutions Limited (PBS) for the nine months ending September 30, 2019 reported an increase in revenues from US$125.48 million for the 2018 period to US$132.20 million in 2019, a 5% increase. For the quarter, revenues increased 8% to total US$47.12 million relative to US$43.47 million the prior quarter.
Direct expenses increased 3% to close the period at US$74.12 million when compared to US$71.93 million for the same period of 2018. As such, gross profit for the nine months rose by 8% to US$58.08 million (2018: US$53.55 million). PBS noted, “the increase was attributed to incremental revenue and lower direct expenses due to the revenue mix.”
Other income fell by 33% to close at US$650,000 relative to US$966,000. For the quarter, other income closed at US$162,000 (2018: US$152,000), a 7% rise.
Selling, general and administrative expenses amounted to US$51.05 million (2018: US$49.36 million), a slight 3% increase. As such, operating profit went up by 49% to total US$7.68 million (2018: US$5.16 million). For the quarter, operating profit totalled US$2.64 million relative to a profit of US$861,000 reported in the prior corresponding quarter. Management stated, “operating profit was favourably impacted by the implementation of IFRS 16 by US$0.5 million versus 2018. The offset was accounted for in finance costs.”
Finance costs rose 22% to total US$6.31 million relative to US$5.19 million in 2018. As such, profit before taxation amounted to US$1.36 million relative to a loss of US$30,000 in 2018. For the quarter, profit before taxation was recorded at US$145,000 versus a loss before taxation of US$951,000 in the previous year’s comparative quarter.
After taxation of US$1.28 million (2018: US$1.31 million), the Company reported a net profit of US$83,000 compared to a loss of US$1.34 million in 2018. Net loss for the quarter amounted to US$102,000 compared to a loss of US$1.48 million in the corresponding quarter of 2018. Total Comprehensive income for the period attributable to shareholders was US$219,000 relative to a loss of US$3.08 million reported in the prior year’s comparable period. Total comprehensive loss for the quarter amounted to US$353,000 relative to US$2.53 million reported for the third quarter of 2018.
The Company reported earnings per share (EPS) for the nine months period of US$0.0018 (LPS 2018: US$0.0250). The loss per share for the quarter amounted to US$0.0029 (LPS 2018: US$0.0206). The twelve-month trailing EPS was US$0.028. The total number of shares employed in our calculations amounted to 123,272,727 units. The stock price closed trading on November 13, 2019 at US$0.59.
Balance Sheet at a glance:
As at September 30, 2019, PBS recorded Total Assets totalling US$178.66 million (2018: US$149.76 million), representing a 19% increase year over year. This movement was mainly attributed to a 11% and 20% growth in ‘Property, Plant and Equipment’ and ‘Inventories to close at US$25.36 million (2018: US$22.76 million) and US$42.67 million (2018: US$35.67 million), respectively. ‘Trade and other receivables’ also contributed to the overall movement to close at US$47.74 million (2018: $46.50 million).
Shareholders’ Equity amounted to US$34.09 million (2018: US$34.94 million), which translated in a book value per share of US$0.277 (2018: US$0.283).
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.