Our opinion on the current state of PBT-GROUP(PBG)

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PBT Group (PBG) is a fledgling IT company in the general finance sector. It has operations in South Africa and Europe, having recently exited operations in the Middle East and the rest of Africa. The company operates in data analytics, data visualisation, application development, strategic consulting, the cloud, and data platforms. The company did a 10-for-1 consolidation earlier. The group has established agreements with a number of European companies to expand its operations into Europe. Agreements have been concluded in the Netherlands and Ireland and are imminent in the UK. This is a company that will probably benefit from COVID-19 because it is involved in digitalisation and the facilitation of remote work sites.

In its results for the year to 31st March 2024, the company reported revenue up 3% and headline earnings per share (HEPS) down 23,8%. The company said, "The decrease in our gross margin is a function of higher-than-usual non-billability in our consultant base due to client budget constraints, as well as not entirely passing through the increase in the cost of consulting to our clients."

We suggest that since this company has been radically re-invented, you may need to allow some time for the direction of the trend to be established and for the effect of its new European operations to become apparent. The share has been drifting down for most of 2023 and 2024 so far. You should wait for a new upward trend to emerge.