PBS returns to profitability
TECHNOLOGY outfit Productive Business Solutions (PBS) has returned to profitability after a year of being in the red.
PBS improved its revenue year on year by 38.4 per cent to report US$224 million on December 31, 2021, compared with US$161.86 million.
The company saw an increase in both its sales and service, with its revenue streams including the sales of reprographic products and the leasing of reprographic equipment, sales of telecommunications products and proprietary software, as well as after-sales service.
Although auditors from Pricewaterhousecoopers raised the assessment of revenue from contracts as a key audit matter, they concluded: “Based on the procedures performed, management’s judgements relating to revenue recognition for the non-standard contracts related to reprographic products, in our view, were not unreasonable.”
For the year under review, direct expenses at PBS rose by 48 per cent to US$145.21 million while selling, general and administrative expenses grew by 13 per cent to US$61.46 million.
Though recording a paltry figure from other income, the company reported operating profit of US$17.33 million. The figure reflects a 60 per cent increase over the US$10.86 registered in 2021.
Net income for the year stood at US$5.6 million compared with US$120,000. Earnings per share improved from US$0.09 to US$3.83.
During the year, PBS closed on the acquisition of its sister company PBS Technology Group Limited for a consideration price of US$54 million, comprising cash payment and the issue of 62,940,796 shares at US$0.77.
Upon announcing the acquisition in September last year, Group CEO Pedro Paris said, “The transaction cements PBS as the leading enterprise IT company in the Caribbean and Central American region. The acquisition of PBS Technology Group gives PBS an unrivalled footprint in 19 countries, an increasingly diversified mix of high-quality businesses, and a talented team of over 2,100 IT professionals.”
He added then that the merged entity had the capacity to generate combined revenue of US$250 million per annum.