PBT dividend up as work from home trend lifts demand

Data specialist PBT has raised its dividend by half as it looks to expand in Europe, the UK and Australia thanks to strong demand for its services.

The technology and cloudagnostic data and digital services and solutions provider declared a dividend of 57c for its 2022 year, it said in its provisional annual results for the year to end-March posted on Thursday.

PBT provides consulting services and solutions in areas such as data engineering, data analytics, cloud computing and software development.

It operates in SA, Europe, the UK and Australia after leaving the rest of Africa and Middle East markets in 2019. The company generated the bulk of the revenue of its core business in SA, at 90%.

Almost three-quarters of all its sales are in the financial services sector to its clients, which include Absa, Capitec, Coronation, FNB, Investec, Nedbank, Sanlam and Standard Bank, followed by retail with 6.7%.

Demand for its services surged during the pandemic, as many companies had to find technological solutions to serve clients when employees started working from home. PBT highlighted the situation that skills shortages in the domestic IT industry remain a problem as demand outweighs supply.

Profit after tax rose 41.3% to R92.3m and revenue was up 24% to R975.7m.

SKILLS SHORTAGES IN THE DOMESTIC IT INDUSTRY REMAIN A PROBLEM AS DEMAND OUTWEIGHS SUPPLY

The company, founded in 1998 as Prescient Business Technologies, listed on the JSE in 2010. In February 2022, it listed on the A2X to make trading of its securities easier for investors.

In recent years, the JSE has faced new competition from the A2X, which began trading in October 2017, and is partly owned by Patrice Motsepe’s African Rainbow Capital.

PBT’s share price on the JSE fell 3.3% on the day to R8.50, giving it a market valuation of R900m.