PBS secured new deals for 2020 and beyond

September 16, 2020

Management stated that, “2019 was the Company’s best year since being a listed Company.” Mr. Pedro Paris, CEO, gave a synopsis of the Company’s 2019 financial year.Productive Business Solutions Limited (PBS) recorded revenues of US$180.1 million which reflected a 1% increase compared to the previous fiscal year (excluding Telecom). Notably, total equipment sales revenue decreased 0.8% which was driven by a reduction in Xerox Related Equipment sales affected by the deep impact of political crisis in Nicaragua. The Company, however, reported a net profit of US$2.36 million, as significant increase from US$134,000 in 2018.

The acquisition of Hightech, which supports the PBS Advanced Services, according to Management, will bring synergies to other parts of PBS’s Business, including:

  • Business Growth and Innovation:
    • Align IT to Business Strategy
    • New Business Opportunities.
  • Operational Efficiency:
    • Increase Network Utilization
    • Streamline Operations.
  • Ensure Security and Compliance:
    • Regulatory Compliance
    • Secure Assets.
  • Maintain Business Continuity:
    • Proactively Prevent Programming Issues
    • Reliable Access to Applications

Furthermore, the Company highlighted its 6 Pillars of Growth Strategy:

  • Printing
  • Maintenance and Services
  • Information Technology
  • Networking
  • Security Systems
  • Advanced Services

Mr. Paris also outlined the new deals to be recognized in revenue for Q3 and Q4:

  1. Outright Sales, where PBS have confirmed contracts for the following:
    • A Self-Checkout equipment for Walmart stores in Guatemala and Costa Rica to be installed in December 2020
    • The Upgrade of fleet of NCR ATMs for Banco Industrial, the largest bank in Guatemala.
    • PBS will supply Desktop Computers, SANs, Firewalls, Document Scanners, Laptop Switches and QR Code Readers for SIECA – Secretariat for Central American Economic Integration.
    • PBS Guatemala is contracted to acquire 19 X-Ray Motion Mobile units to be distributed nationwide to 7 hospitals for UNIOPS and Guatemalan Institute of Social Security.
    • PBS El Salvador will provide 9,500 Xerox Scanners and 9,500 V SEVEN Projectors to be used by the Supreme Electoral Tribunal of El Salvador at each 2021 Vote Receiving Board of the Legislative and Municipal election in February 2021.
    • Installation of two MV3D large baggage scanners (explosive detection devices for checked luggage) at the Montego Bay Airport.
         2. Multi-Year Contracts:
    • PBS will exclusively supply all the computer equipment, laptop and desktops for 3 years starting July 2020 for Walmart in the Central America countries.
    • Walmart renewed a 3-year contract for PBS to provide Level 2 Support Services to all technology hardware in 5 countries in Central America.
    • PBS Guatemala will supply 2 million pre-personalized Smart Cards for the National ID.
    • APM Terminals Quetzal Project (Guatemala) signed a 5-year contract for PBS to provide X-ray generated images from non-intrusive inspection of containers.
    • PBS will supplier software, ID cards, printers and professional services for the Barbados Digital ID and National ID Card replacement project that is expected to last four months.

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.

2020-09-16T14:50:53-05:00