PBS reports year end net profit attributable to shareholders of US$1.80 million

May 4, 2020

Productive Business Solutions Limited (PBS) for the year ending December 31, 2019, reported a marginal increase of 0.45% in revenues  from US$179.29 million in 2018 to US$180.10 million in 2019. For the quarter, revenues decreased 11% to total US$47.90 million relative to US$53.82 million the prior corresponding quarter.

Direct expenses increased 4% to close the period at US$108.25 million when compared to US$104.23 million for the same period of 2018. Direct expenses for the quarter amounted to US$34.12 million (2018: US$32.30 million).

As such, gross profit for the year decreased 4% to US$71.86 million (2018: US$75.07 million). Gross profit for the quarter amounted to US$13.78 million (2018: US$21.52 million).

Other income declined 45% to close at US$770,000 relative to US$1.40 million in 2018 while impairment losses amounted to US$591,000 (2018: $194,000).

Selling, general and administrative expenses amounted to US$60.49 million (2018: US$64.51 million), a 6% decrease. As such, operating profit decreased 2% for the period to total US$11.55 million relative to the US$11.76 million in 2018. Operating profit for the quarter totaled US$3.88 million, a 41% decrease on the US$6.60 million reported in the same quarter of 2018.

Finance costs decreased to total US$7.51 million relative to US$9.15 million in 2018. Management noted that this was, “primarily due to the refinancing of our bond”. As such, profit before taxation amounted to US$4.04 million, 55% increase on US$2.61 million reported in 2018.

After taxation of US$1.96 million (2018: US$2.48 million), the company reported a net profit of US$2.09 million, an increase from US$134,000 in 2018. Net profit for the quarter amounted to US$2 million, a 36% increase on the US$1.47 million reported in the corresponding quarter of 2018.

Net profit attributable to shareholders for the period under review amounted US$1.80 million (2018: US$69,000), while for the quarter, net profit attributable to shareholders closed at US$2 million (2018: US$1.47 million).

As such, total comprehensive income amounted to US$2.42 million relative to a loss of US$2.32 million booked in 2018. For the quarter, total comprehensive income closed at US$2.20 million (2018: US$756,000). Management noted, “Profitability increased significantly year over year driven by margin improvements as a result of increased sales of higher end service-oriented products”.

For the period, the company reported earnings per share (EPS) of US$0.0146 (EPS 2018: US$0.00056). The earnings per share for the quarter amounted to US$0.02 (EPS 2018: US$0.01). The total number of shares employed in our calculations amounted to 123,272,727 units. The stock price closed trading on May 01, 2020 at US$0.77.

Management noted that, “In 2020 we look forward to building on our base of high-quality recurring revenues by executing on several new projects across our printing, information technology, professional services, networking and advanced services business lines.”

Balance Sheet at a glance:

As at December 31, 2019, PBS had total assets totaling US$179.41 million (2018: US$167.04 million) which represents an increase of 7%. This movement was mainly attributed to a 13% and 636% growth in ‘Property, Plant, and Equipment’ and ‘Contracted assets’ respectively to US$25.52 million (2018: US$22.66 million) and US$6.08 million (2018: US$826,000), respectively.

Shareholders Equity amounted to US$35.21 million (2018: US$35.08 million) with a book value per share of US$0.29 (2018: US$0.29)


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.