The continued digitisation of education in Central America in partnership with Google has borne fruit for Productive Business Solutions Limited (PBS) which grew its consolidated revenue by 18 per cent to US$387.39 million ($60.59 billion) during 2024.

The integrated market provider signed an agreement with the California based firm in 2022 to support the installation of software and delivery of laptops and tablets in several regional markets.

These initiatives have largely manifested in El Salvador which saw a 74 per cent rise in revenue from US$57.43 million to US$99.81 million due to the continuation of a project by the Nayib Bukele-led Government. PBS also saw a 23 per cent increase in its Costa Rican revenue to US$37.42 million due to an ongoing education and telecommunications project.

“There’s a lot of big contracts in Costa Rica. Costa Rica is probably the largest economy in our region that spends the highest amount on technology. To put it in context, Costa Rica has five banks bigger than our largest bank in Jamaica,” said Chairman Paul B Scott at the company’s eighth annual general meeting held on August 14.

PBS acts as a regional distributor of software and hardware solutions across 24 markets in the Caribbean and Central America with more than 3,000 employees. The business is spread across seven segments defined as imaging, information technology (IT), network communications, professional services, security systems, advanced services and payment methods. PBS represents different international players such as Xerox, Cisco, Oracle and Fortinet.

The regional company has been expanding its presence across Central America and Caribbean through numerous acquisitions over the past five years. It acquired PBS Technology Group Limited in September 2021, Infotrans Group Holding B V in June 2023 and Xerox Peru and Xerox Ecuador in July 2024.

These acquisitions along with increased technology spending has pushed PBS’s earnings and financial profile over the last five years. The company from US$180.10 million in consolidated revenue, US$24.87 million in EBITDA (earnings before interest, tax, depreciation and amortisation), US$2.09 million in consolidated net profit and US$179.41 million in total assets during 2019. PBS delivered US$387.39 million in consolidated revenue, US$50.9 million in EBITDA, US$7.58 million in consolidated net profit and US$399.72 million in total assets during 2024.

“For us to get to US$1 billion in revenue, we have to be in much larger markets. Those markets we’re in with Colombia, Peru, Ecuador,” Scott added on the growth opportunities for the company which has its largest ever pipeline of deals in its history.

PBS acquired Xerox Peru for a consideration of US$11.97 million which was split into US$4.23 million in cash paid and a US$7.74 million four-year promissory note. PBS also paid a consideration of US$3.49 million for Xerox Ecuador with US$1.23 million in cash paid and a promissory note.

These new markets represent a major opportunity for PBS whose business didn’t go far into South America. PBS was recently awarded a managed services contract Cisco Meraki within its networking business which will result in recurring revenue for the next three years. PBS is also seeking to close certain multi-year recurrent transactions in its managed print services.

“What we have to do is to transform a document solutions business into an IT business. That doesn’t take a magic wand. It takes time, investment in people, training, and it takes investment in infrastructure and you’re developing a brand that didn’t exist before. You need people to want to work at PBS,” Scott explained regarding the Peru business.

PBS also continues to work on scaling its Colombian business which generated US$5.07 million in revenue during 2024. PBS’ largest markets include Jamaica, Trinidad & Tobago, Guatemala, Honduras and Barbados which earned more than US$20 million in revenue in 2024. PBS expects to generate US$400 million in revenue for the 2025 financial year.

“If we are laser focused on funding, working and managing the business and our people, we have a big enough geographic platform for us not to need to go into Brazil or Argentina to grow. We are in the markets we want to be in, what we need to have is the best people in those markets, we need those markets to be well funded, and we have the products. People want the products we’re selling,” Scott noted on the company’s outlook.

PBS’ second quarter revenue decreased 12 per cent to US$89.91 million due to a significant El Salvador transaction in 2024. However, PBS’s gross profit improved nine per cent to US$30.20 million with margins rising to 33.59 per cent. Operating profit grew nine per cent to US$7.17 million with EBITDA at US$12.98 million. Due to higher taxes, PBS’s consolidated net profit dipped four per cent to US$1.85 million, with net profit attributable to shareholders at US$1.84 million.

For the six months period, PBS’ revenue rose ten per cent to US$183.87 million with gross profit improving 21 per cent to US$61.64 million and margins of 33.52 per cent. Operating profit increased 45 per cent to US$15.62 million with EBITDA moving up 37 per cent to US$26.98 million. Despite a 93 per cent rise in profit before tax to US$8 million, a higher tax bill resulted in consolidated net profit increasing by 85 per cent to US$4.55 million, with US$4.52 million attributable to shareholders.

PBS’ total assets grew two per cent over the six months to US$408.82 million with US$110.30 million in trade and other receivables with cash and cash equivalents at US$23.88 million. Total liabilities and equity attributable to shareholders were US$327.70 million and US$79.91 million, respectively.

PBS’ stock price for its ordinary shares closed Thursday at US$1.0266 which leaves it down 29 per cent in 2025 with a market capitalisation of US$191.17 million. PBS’ perpetual preference shares are both up two per cent in 2025 with the JMD (10.50 per cent) preference share at $1,140 while the USD (9.25 per cent) preference share is at US$10.50. This is above the $1,000 and US$10 face value prices.

PBS will pay a $25.890411 and US$0.23125 preference share dividend on September 30 to owners on August 28. This totals $12.95 million (US$80,664.28) and US$346,875.

“In looking ahead, PBS will operate in seven defined business lines. By the end of 2025, each designated [business line] to capture value across our integrated ecosystem. This follows the planned acquisition by year end of Trinidad Systems Limited which we expect to close soon. The landscape ahead is full of opportunity,” said PBS CEO Pedro Paris Coronado on the outlook.