However, profitability was tempered by big jump in direct expenses

Regional information technology company Productive Business Solutions Limited (PBS) made its biggest net profit ever in 2021, amounting to US$5.74 million.

This surpasses, by far, the net profit of US$119,000 made in 2020. Net profit for the December 2021 fourth quarter was up by a massive 472 per cent to US$7.99 million, coming from US$1.40 million during the corresponding fourth quarter of 2020.

Taxation for the year was US$1.37 million, down from the US$2.12 million posted in 2020. Net profit attributable to shareholders for the December quarter amounted US$8.35 million, up from US$1.39 million in 2020.

Commenting on the positive performance, the management reports that, during 2021, “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”.

The management has emphasised that the growth in 2021 was broad based.

According to the management, the growth exhibited “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”.

For the year ended December 31, 2021, PBS reported a 37 per cent increase in revenues from US$161.86 million in 2020 to US$221.92 million in 2021. For the December quarter, revenues increased 53 per cent to total US$76.46 million relative to US$49.89 million the prior corresponding quarter. 

Direct expenses was a drag

The profitability would have been much better owing to a sharp rise of 47 per cent in direct expenses, which closed the year 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).

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 per cent increase.

Operating profit rose by 61 per cent 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 per cent 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 per cent increase from US$2.24 million reported in 2020. 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). 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 per cent.

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.