May 15, 2020
Productive Business Solutions Limited (PBS) for the three months ended March 2020 reported a 4% decrease in revenues from US$43.56 million for the 2019 period to US$41.91 million in 2020. The Company noted that, revenue included ” a one-time transaction of US$ 3.2 million in Honduras.”
Direct expenses decreased 7% to close the period at US$23.16 million when compared to $24.83 million for the same period of 2019. As such, gross profit for the period under review marginally increased to close at US$18.74 million (2019: US$18.72 million).
Other income declined by 68% totalling US$47,000 relative to US$147,000 in the prior corresponding period.
Selling, general and administrative expenses amounted to US$16.01 million (2019: $16.15 million), a 1% decline.
As such, operating profit went up 2% for the period to total US$2.78 million relative to US$2.72 million in the prior comparable period.
Finance costs increased 4% to total US$2.66 million versus US$2.55 million in 2019. As such, profit before taxation amounted to US$121,000 relative to a profit of US$171,000 in 2019.
After taxation of US$398,000 (2019: US$713,000), the Company reported net loss of US$277,000 (2019: loss US$542,000). Net loss attributable to shareholders amounted to US$630,000 for the three months ended March 31, 2020 versus a net loss attributable to shareholders of US$385,000 in the comparable period last year.
Total comprehensive loss for the period was US$613,000 versus loss of US$385,000 in the same period last year.
For the period the company reported a loss per share (LPS) of US$0.0022 (LPS 2019: US$0.0044). The twelve month trailing EPS was US$0.019. The total number of shares employed in our calculations amounted to 123,272,727 units. The stock price closed trading on May 14, 2020 at US$0.77.
PBS noted that, “This transformation was interrupted by the Covid-19 crisis that started to affect our business in early March. PBS is a knowledge-based company, and as such, our people are our greatest asset and therefore our first priority has been the safety and security of our employees. Although first quarter results were not materially affected, PBS management has adopted a broad response for future revenues. There is no doubt that future revenues will be affected in q2 by the various measures governments have put in place across our geographies. What is not in doubt is the spirit and determination of our team to work through these issues.”
Management also stated, “The company successfully integrated its recent acquisition of software and services company, High Tech. As a result of High Tech in combination our performance in other countries, Oracle will now open the Guatemalan market to PBS in May 2020. Additionally, in the first two months of 2020 PBS signed two major contracts. We renewed our contract with the largest American multinational retail corporation that operates a chain of hypermarkets in Central America for three more years. PBS also signed a five-year seaport scanning contract with APM (a Maersk subsidiary) in Guatemala.”
In addition, PBS mentioned, “In addition, PBS has been seeking opportunities within the health care vertical. For example, Carestream Health expanded their contract to include the Salvadoran and Costa Rican markets with PBS as their exclusive distributor creating an important potential pipeline in medical imaging solutions for Q3 2020. PBS is also working with distributors of sanitizing tunnels and thermal cameras which we believe could be utilized in banking, retail and other industries. We expect that PBS’s blend of technology, networking capabilities and its extensive customer base will allow PBS to take advantage of the opportunities that will emerge in the post Covid world.”
Balance Sheet at a glance:
As at March 2020, PBS had total assets totalling US$181.57 million (2019: US$155.58 million), which represents an increase of 17%. This movement was mainly attributed to a improvements in ‘Right of use’ and ‘Trade and other receivables’ which closed at US$15.88 million (2019: nil) and US$50.96 million (2019: US$45.21 million), respectively.
Shareholders Equity amounted to US$34.58 million (2019: US$34.48 million) with a book value per share of US$0.281 (2019: $0.280).
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