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).
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