Productive Business Solutions Limited (PBS) is planning to return to the equities market shortly to fund its numerous business opportunities including potential acquisitions across the Latin America and Caribbean region.

PBS is a technology company involved in the distribution of numerous physical and technological services across the region. The Barbados-based company completed the acquisition of PBS Technology Group Limited in September 2021 which expanded its reach to 19 countries with 2,100 employees. This pushed the company to record its highest revenue of US$224 million and earn net profit attributable to shareholders of US$5.52 million in 2021.

As a result of the new deals coming its way, PBS is planning to issue 10 million perpetual cumulatively redeemable preference shares to the public. Five million preference shares will be issued in Jamaican dollars at an interest rate of 10 per cent per annum and another five million preference shares to be issued in United States dollars at nine per cent per annum. The issuance of the preference shares was approved at a special meeting held in February. PBS is listed on the USD market of the Jamaica Stock Exchange (JSE) and on the Barbados Stock Exchange (BSE). Musson (Jamaica) Limited and its related Facey Group Limited own 73.12 per cent of the company.

“At this point where we are, I think we have two or three opportunities for this year. If they happen, they will significantly change the configuration of the company. My job is to make them happen along with all the stakeholders mentioned. We think we have a formidable platform to integrate entities and that’s why we feel very optimistic that this will change the configuration of the company. We are in the process of deliberating a handful of opportunities and see how they fit in our acquisition funnel,” said PBS Chief Executive Officer Pedro Paris in an interview with the Jamaica Observer. Paris has been the CEO of PBS since 2009 and is a Costa Rican citizen.

While Paris couldn’t go into the details of the offer, he did point out that the expanded group was optimistic for the year as it aims to hit its current revenue target of US$300 million in 2022. The group’s El Salvador operation has already surpassed the current target for the year with other countries making strong inroads with various projects. The company renewed its exclusive distribution agreement with Xerox in the first quarter across multiple markets and is looking forward to growing its partnership with Dell and Google across the region.

PBS currently has a $2.58 billion (US$16.28 million) cumulatively redeemable preference share with a fixed rate of 9.75 per cent in issue and redeemable in June 2024 at its issue price of $100. Its subsidiary PBS Technologies (Trinidad) Limited had its Caribbean Information and Credit Rating Services Limited (CariCRIS) rating of high or CariAA reaffirmed on its US$40-million bond last month. This is the same rating as regional financial firm Sagicor Financial Company Limited and Trinidad’s National Investment Fund Holding Company Limited. With an asset base of US$346.15 million, consolidated cash of US$22.05 million and an equity base of US$84.06 million, PBS could issue the JMD preference shares between $200 – $400 and the USD preference shares between US$1.32 to US$2.65 per share to raise $2 billion to $4 billion (US$26.67 million). PBS’s book value is US$0.45.

“It’s very important for us that we’re very constant and I believe that our parent entity, Musson, has unique skills on mergers and acquisitions. Our [Musson] Chief Investment Officer Nicholas Scott is one of the best there is and we’re always looking into the opportunities to make some acquisitions and maximum on the existing platform that we have to generate hefty economies of scale,” Paris added on the history of PBS which has been focused on acquiring other businesses throughout its years of operation.

PBS saw a 35 per cent increase in its first quarter revenue to US$66.36 million, operating profit of US$5.29 million and earnings before interest, depreciation and amortisation (EBITDA) of US$9.85 million. It had a net profit attributable to shareholders of US$637,000 compared to a net loss attributable to stockholders of US$154,000. Paris noted that the integrations between its PBS and PBT Technology Group are going well which will result in cost savings in the coming quarters and make the group more competitive. PBS’s JSE price closed at US$1.14 which gave it a market capitalisation of US$186.21 million while its BSE price was US$0.55, the same as its initial public offering price in 2017.

“PBS is the leading technology company in the region with the best and most complete portfolio in the space. I think PBS is a great place to work and have a career. To the everyday person, they touch PBS products and services every day without knowing when they go to a bank, supermarket, airport or use their credit cards. PBS is a crown jewel of the Musson Group because of the reach in 20 countries, so the risk is very balanced,” Paris closed.