PBT Group Soars with Record Revenue Growth and Dividend Declaration

PBT Group Limited (JSE: PBG) released its summarised audited consolidated annual financial statements for the financial year ended 31 March 2023. The company reported another highly successful year, marked by record revenue growth and a distribution declaration.

PBT Group is renowned for delivering data-driven insights that empower clients to make timely and informed business decisions. By transforming data into valuable assets, the company streamlines operations and enhances its clients’ predictive and analytical capabilities.

FY2023 demonstrated remarkable financial performance for PBT Group, with an impressive organic revenue growth of 11.8%, amounting to R1.1 billion. The company also experienced a 2.5% increase in earnings before interest, taxation, depreciation, and amortization (EBITDA), reaching R142.0 million. These exceptional figures build upon a strong foundation established in the previous financial year.

As part of its strategic plan, PBT Group successfully divested its non-core assets, resulting in net proceeds of R220.2 million, equivalent to R2.10 per share. The company also utilized R10 million to repurchase shares, further solidifying its position as a specialized provider of data solutions and software services. Consequently, PBT Group has become a more focused organization, better positioned to optimize client operations without being constrained by specific products or technologies.

Benefiting from robust cash flows, PBT Group declared a final ordinary dividend of 33 cents per share (R34.5 million). This contributes to a total FY2023 ordinary dividend of 58 cents per share (R60.8 million), reflecting a 1.8% increase compared to the previous year.

Key financial results for the year ended 31 March 2023 include:

• Revenue: R1,091.00 million, representing an 11.8% increase from the previous year.
• EBITDA: R142.00 million, reflecting a 2.5% growth.
• Operating profit: R134.90 million, exhibiting a 3.1% increase.
• Profit before taxation: R135.00 million, indicating a 3.7% rise.
• Profit for the year: R98.50 million, showcasing a 6.7% improvement.
• Profit attributable to owners of the parent: R68.50 million, with a 1.9% increase.
• Cash generated from operations: R137.70 million, marking a 1.5% growth.
• Earnings per share: 77.54 cents, a decrease of 3.6%.
• Headline earnings per share: 77.69 cents, reflecting a decrease of 6.3%.
• Net asset value per share: 3.81 cents, indicating a substantial 15.8% increase.
• Total ordinary cash distribution: 58.00 cents per share, displaying a 1.8% growth.

BDO South Africa Inc, the auditors, provided an unmodified audit opinion on the summarised results, ensuring the accuracy and completeness of the financial statements.

Regarding the distribution declaration, PBT Group’s Board of Directors declared a capital reduction distribution of 16.50 cents per PBT ordinary share, in addition to a dividend distribution of 16.50 cents per PBT ordinary share. The combined distribution amounts to R34.5 million. Shareholders should take note that the dividend component is subject to a dividend withholding tax of 20%, resulting in a net final dividend of 13.20 cents per share for shareholders not exempt from dividend tax. On the other hand, the capital reduction distribution is not subject to dividend withholding tax, as it originates from capital reserves.

The following dates are relevant for the distribution:

• Last day to trade “cum Distribution”: Tuesday, 18 July 2023.
• First trading day “ex Distribution”: Wednesday, 19 July 2023.