February 15, 2023
In United States dollars (except where it is indicated otherwise)
Productive Business Solutions Limited (PBS) for the year ended December 31, 2022, reported a 41% increase in revenues from US$224.00 million in 2021 to US$316.15 million in 2022. For the quarter, revenues increased 14% to total US$89.18 million relative to US$78.26 million the prior corresponding quarter. PBS noted, “PBS’ results for 2022 were achieved by increasing our focus on sales in each of our operations. The Company’s growth was broad-based with the majority of our 19 markets registering increased sales and profitability.”
Direct expenses increased by 51% to close the period at US$219.45 million when compared to US$145.21 million for the same period of 2021. Direct expenses for the quarter amounted to US$63.63 million (2021: US$48.27 million).
As such, gross profit for the year rose 23% to US$96.70 million (2021: US$78.78 million). Gross profit for the quarter amounted to US$25.55 million (2021: US$29.99 million).
Other income rose to close at US$2.25 million relative to US$744,000 in 2021.
Selling, general and administrative expenses rose 13% to close at $70.34 million relative to $62.20 million in 2021.
Operating profit rose by 65% for the period to total US$28.61 million relative to the US$17.33 million in 2021. Operating profit for the quarter totaled US$7.11 million, a 39% decrease on the US$11.67 million reported in the same quarter of 2021.
Finance costs increased to US$16.74 million relative to US$10.21 million in 2021. As such, profit before taxation amounted to US$11.87 million, 67% increase from US$7.12 million reported in 2021.
After taxation of US$3.50 million (2021: US$1.52 million), PBS net profit amounted to US$8.37 million, relative to a net profit of US$5.60 million booked twelve months earlier. Net profit for the quarter amounted to US$4.05 million, a 48% decrease on the US$7.84 million reported in the corresponding quarter of 2021.
Net profit attributable to shareholders for the quarter under review amounted US$4.01 million (2021: US$8.21 million), while for the period, net profit attributable to shareholders closed at US$8.30 million (2021: US$5.52 million).
As such, total comprehensive income amounted to US$9.68 million relative to US$4.17 million booked in 2021. For the quarter, total comprehensive income closed at US$6.40 million (2021: US$7.37 million).
For the period, the Company reported earnings per share (EPS) of US$0.0446 (EPS 2021: US$0.0297). The earnings per share for the quarter amounted to US$0022 (EPS 2021: US$0.044). The total number of shares employed in our calculations amounted to 186,213,523 units. The stock price last traded on February 15, 2023 at US$2.20 with a corresponding P/E ratio of 49.38 times.
Management noted, “We have successfully executed a strategy to diversify our business creating a balanced business with increased regional scale, product diversification and growing recurring revenue. Last year, PBS provided information technology, communication, security, printing and advanced technology solutions to leading governments and businesses in most major markets in the Caribbean and Central America.”
Balance Sheet at a glance:
As at December 31, 2022, PBS had total assets totaling US$379.40 million (2021: US$336.96 million) which represents an increase of 13%. The growth year over year was linked to ‘Trade and other receivables’ which closed the year at $104.10 million relative to $83.52 million reported in 2021.
Shareholders Equity amounted to US$104.59 million (2021: US$83.28 million) with a book value per share of US$0.56 (2021: US$0.45).
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