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Productive Business Solutions Limited, PBS, a regional Xerox distributor and technology services provider, grew its capital by eight per cent last year, but still has a steep hill to climb back to its position three years ago.
The company, chaired by Paul Scott and listed on the Jamaica Stock Exchange, also made record operating profit before accounting for interest, tax, depreciation and amortisation charges.
The capital growth in 2024 comes from improved profit and an increase in net assets, and follows a forensic investigation that unearthed irregularities at the company’s Costa Rica operations in 2023. Those findings led to a reduction in PBS group’s capital from US$105.9 million in 2022 to US$77.6 million at year ending December 2023.
Its preliminary 2024 results show that the company, which is a member of the Musson Group, has regained some of its value, to US$84 million.
The audit of the Costa Rica operations revealed journal entries with insufficient documentation, affecting key financial line items such as contract assets, inventories, long-term receivables, and trade receivables. Additionally, the investigation identified unrecorded liabilities, further complicating the company’s financial standing, stated the financials at the time.
PBS operates in 24 regional markets and continues to grow rapidly. Amid that growth, the company’s debt has surpassed its capital and continues to rise.
PBS’s borrowings totalled US$146 million, while capital stood at US$84 million, resulting in a debt-to-capital ratio of 173 per cent in December 2024. That’s up from 124 per cent a year earlier when borrowing stood at US$97 million.
The company has indicated that it’s managing its debt load.
“PBS successfully refinanced most of its debt obligations earlier in the year with Citi. Therefore, the company was able to extend its maturity profile, diversify its sources of funding across the region and increase its liquidity,” the company reported to stockholders in its newly released fourth-quarter results.
For the full year, PBS reported annual revenue of US$387.6 million, up from US$327.6 million in 2023. Its earnings grew to US$8.5 million from US$8.1 million.
In 2025, PBS said it will focus on providing regional clients with a one-stop shop for their needs. It plans to add new offices and storefronts in existing markets of Jamaica, El Salvador, Costa Rica and Peru.
“These new facilities will bring an upgrade from the prior locations,” the company said.
Additionally, in relation to the company’s project pipeline: “We anticipate 2025, like the past four years, we will experience revenue growth and improvements in our key business performance indicators,” it said.
The company made an operating profit of US$31.3 million, which grows to US$51.6 million in EBITDA, or earnings before interest, tax, depreciation and amortisation charges.
“This is the first time that the company has achieved over the US$50-million mark in this financial indicator,” said PBS of its EBITDA performance.
During the year, PBS completed the acquisition of Xerox’s operations in Peru and Ecuador, thereby expanding its presence in Latin America and strengthening its relationship with Xerox. The acquisition of 45 per cent shareholding in Trinidad Systems Limited allowed PBS to implement its seventh line of business – payment methods.
Overall, PBS invested US$8 million to acquire businesses, and pumped US$3.5 million into associate companies, as indicated on its cash flow statement.
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