Productive Business Solutions Ltd (JSE:PBS)

Company

PBS is a Public company on the Jamaica Stock Exchange (JSE Main Market).

Last closed on 2017-09-21 at
JSE - US$0.6500 0.00% 0.0000
Opened at : 0.6500.

Trading History & Performance

Period% MovementHistorical Prices
(m/y)*
Total Volume TradedDays Traded
(U/D/F/NT/T)
WTD+8.33%0.6000 Sep/1750,9001 / 0 / 2 / 1 / 3
MTD+18.18%0.5500 Aug/1764,0203 / 1 / 6 / 5 / 10
YTD+18.18% Dec/1664,0203 / 1 / 6 / 6 / 10
YTD 2016Pro1Pro1Pro1Pro1

KEY: U / D / F / NT / T represents Up / Down / Firm / Not Traded / Traded respectively

Key Ratios & Margins

Growth &
Valuation

2017 2016
Market Cap: Pro1 Pro1
Book value:
Price/Book:
Price/Sales:
Price/Earnings:

Key Profitability
Ratios

2017 2016
EPS: Pro1
Dividends
per share:
ROE:
ROA:
Dividend
Yield:

Margins

2017 2016
Operating Margin:
Profit Margin:

Analyst Ratings

Rating - Date
Barita:
JMMB:
Mayberry:
VM Wealth:

Ratios and key financials based on the audited financials for the dates stated above.

Business Profile

Productive Business Solutions Ltd is a subsidiary of the Musson group of companies and they launched their initial public offer  in June 2017 to raise US$41.5m. The offer was successful and they were listed on the Jamaica stock exchange in September 2017

The Business and what they do

  • The company distributes printing, computing, networking, storage, imaging, security and point of sale equipment products and provides document management, graphic communication, software integration, outsourcing and more to clients across the region
    • They have exclusive distribution rights for Xerox in 14 countries, making it the largest distributor of Xerox in the region. They also maintain distributional relationships with other brands including Cisco, Oracle, HP etc.
    • In 2017 they got a (non-exclusive) contract to distribute Xerox to Colombia, a country with a population of over 49 million people. The GDP of Columbia is similar to the GDP of the other 14 countries in which they already distribute combined.
    • They were also granted exclusive rights to distribute in Suriname.
  • The Company’s ultimate parent company is Musson (Jamaica) Limited, which is a company incorporated and domiciled in Jamaica, and the Company’s controlling parties are Musson and Paul B. Scott.

How They Make Money

The Company segregates its revenues in two main categories: Equipment Sales and Recurring Sales.

  • Equipment Sales include both hardware and software, and the primary brands are Xerox, Oracle, Cisco, L3, NCR, and HP.
  • Recurring Sales is further subdivided into two categories, paper and supplies and maintenance and servicing.
    • Paper and Supplies include the sale of parts for the equipment, rental/leases of equipment, phone/ID/access cards, while
    • Maintenance and Servicing include maintenance and maintenance contracts for the equipment, printing of statements, and other services as described in the below table.

The company is well diversified both in terms of where it makes its money (countries) and what products contributes (product line). Here was the breakdown by country and product line at the time of the IPO. 

 

Company Background

PBS was originally founded in 2001 as a division of Musson to acquire the business and assets of Xerox Corporation in Jamaica. Through a joint venture between Musson and Seprod Limited (“Seprod”), PBS expanded to the Dominican Republic, Aruba and Curacao in 2004 through the acquisition of subsidiaries of Xerox Corporation in those countries. These companies were renamed PBS Dominicana, PBS Aruba and PBS Curacao respectively, upon acquisition by PBS.

The company’s background continues with a similar string of acquisitions.

In 2006 Facey Commodity Company Limited (“Facey”), a then 50% associate company of Musson, acquired 51% of Grupo Difoto, the exclusive distributor of Xerox products in Guatemala, El Salvador, Costa Rica and Panama and a distributor for NCR and Sony Medical imaging in Guatemala. In 2006, Facey also acquired Springer Clarke Business Machines Ltd., owner of Barbados Business Machines Limited (“BBM”), a technology distributor in Barbados that represented Xerox among other brands.

The Company has a subsidiary in Jamaica, PBS Jamaica, along with several other subsidiaries in Central America and the Caribbean. The Company has not itself established a place of business in Jamaica.

Read about the IPO hereFull prospectus here (PDF)

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