Productive Business Solutions Limited (PBS), which operates in 22 markets in the Caribbean and Latin America region, made a net loss of US$277,000 for the quarter ended March 31, 2020, but management is bullish over inroads being made in the health sector which it believes will deliver results in Q3 2020.
Management in its Q1 report said that PBS had been exhibiting “a fast-paced recovery “ in the first two months of 2020, before sales began to be impacted by the government measures associated with the spread of COVID-19 in early March.
Revenue for the quarter was US$41.9 million, down from US $43.6 million for Q2 2019.
Gross profit at US$18.7 million was flat over 2019, with gross margins improved from 42.9 per cent last year to 44.6 per cent.
Selling expenses and other costs were $16 million, US$1 million less than in 2019, despite US$0.7 million in integration costs for new acquisition High Tech. EBITDA was US $6.2 million, US$1.2 million improved over 2019.
Chairman of the Board, P.B. Scott, in the company’s annual report published this week said PBS will continue to focus cost reduction and on streamlining operations with shared services being implemented.
Management has also been focusing below the EBITDA line costs, Scott outlined.
PBS bonds were refinanced for a further five years at the end of 2019 year at a reduced rate, Scott outlined, stating that this will improve cash flow annually as well reduce costs, he stated.
PBS’ operations are geographically diversified throughout Central America and the Caribbean as well as Colombia.
In its Q1 report for the March quarter the company indicated that it had gained momentum by signing two new contracts: one a renewal with a major US multinational and the other a five-year seaport scanning contract.
However, the company’s transformation was halted by the COVID-19 crisis, management said in remarks attached to its most recent financials. Since then, PBS outlined it has been seeking opportunities within the health care vertical.
For example, it was noted, CareStream Health expanded their contract to include the Salvadorean and Costa Rican markets with PBS as their exclusive distributor “creating an important potential pipeline in medical imaging solutions for Q3 2020,” management said.
PBS is also working with distributors of sanitising tunnels and thermal cameras, which management stated, “ we believe could be utilised in banking, retail and other industries.”
They concluded, “We believe that PBS’s blend of technology, networking capabilities and its extensive customer base will allow the company to take advantage of the opportunities that will emerge in the post-COVID world.”
PBS was established in 2001 as a subsidiary of the Musson Group. It has grown from its origin in Jamaica to become a leading technology solutions business. The company has exclusive distribution rights for Xerox in Central America, certain islands in the Caribbean and in Colombia (incorporated in 2017 as non-exclusive Xerox Distributor) making it, one of the largest Xerox distributors.
It maintains regional distribution agreements with technology brands such as Cisco, Oracle, Quadient, Red Hat, HP and Leidos in addition to specific country distribution contracts with brands such as NCR, Dell, Lenovo, Datacard, Carestream, Thales, and Kodak .
PBS claims over 12,000 accounts, with its Xerox legacy business being a fundamental part of its recurrent source of revenue.