February 15, 2022
Productive Business Solutions Limited (PBS) for the year ended December 31, 2021, reported a 37% increase in revenues from US$161.86 million in 2020 to US$221.92 million in 2021. For the quarter, revenues increased 53% to total US$76.46 million relative to US$49.89 million the prior corresponding quarter. PBS noted, “This year PBS solidified its position as the leading enterprise technology company in the Caribbean and Central America recording the highest revenue, EBITDA and net profit after tax in its history.”
Direct expenses increased by 47% to close the period at US$143.43 million when compared to US$97.90 million for the same period of 2020. Direct expenses for the quarter amounted to US$46.26 million (2020: US31.72 million).
As such, gross profit for the year rose 23% to US$78.49 million (2020: US$63.96 million). Gross profit for the quarter amounted to US$30.20 million (2020: US$18.17 million).
Other income increased to close at US$1.26 million relative to US$1.91 million in 2020.
Selling, general and administrative expenses amounted to US$62.29 million (2020: US$55.01 million), a 13% increase. Operating profit rose by 61% for the period to total US$17.47 million relative to the US$10.86 million in 2020. Operating profit for the quarter totaled US$11.81 million, a 184% increase on the US$4.16 million reported in the same quarter of 2020.
Finance costs increased to US$10.36 million relative to US$8.62 million in 2020. As such, profit before taxation amounted to US$7.11 million, 217% increase from US$2.24 million reported in 2020.
After taxation of US$1.37 million (2020: US$2.12 million), PBS net profit amounted to US$5.74, relative to a net profit of US$119,000 twelve months earlier. Net profit for the quarter amounted to US$7.99 million, a 472% increase on the US$1.40 million reported in the corresponding quarter of 2020.
Net profit attributable to shareholders for the quarter under review amounted US$8.35 million (2020: US$1.39 million), while for the period, net profit attributable to shareholders closed at US$6.07 million (2020: US$72,000).
As such, total comprehensive income amounted to US$4.13 million relative to a loss of US$2.44 million booked in 2020. For the quarter, total comprehensive income closed at US$7.51 million (2020: US$767,000 million).
For the period, the company reported earnings per share (EPS) of US$0.0326 (EPS 2020: US$0.0004). The earnings per share for the quarter amounted to US$0.045 (EPS 2020: US$0.007). The total number of shares employed in our calculations amounted to 186,213,523 units. The stock price closed trading on February 14, 2022 at US$1.09 with a corresponding P/E ratio of 33.44 times.
Management noted, “PBS’ growth in 2021 was broad based and demonstrated the capability of the Company’s newly expanded platform which now encompasses 19 countries and 2,100 professionals. The quality of PBS’ earnings also continues to improve as information technology, communications, security and advance services grow. At the scale PBS has achieved, these lines of business often produce predictable, recurring revenue and high returns on capital.”
Balance Sheet at a glance:
As at December 31, 2021, PBS had total assets totaling US$337.24 million (2020: US$180.94 million) which represents an increase of 86%. The growth year over year was linked to ‘Intangible Assets’ which improved to $103.34 million (2020: $20.01 million). ‘Trade and other receivables’ also contributed to the overall movement to close the year at $88.12 million relative to $51.73 million reported in 2020.
Shareholders Equity amounted to US$75.94 million (2020: US$32.76 million) with a book value per share of US$0.41 (2020: US$0.18)
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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
