PBC on flying note

Produce Buying Company, the single largest Licensed Buying Company of cocoa in the domestic market has released its financial statements for the 2007/2008 operational year ended 30th September, 2008.
The results showed a tremendous improvement in the bottom line indicator of the company in relation to the same period in the previous year.
Revenue of the Company increased from GH¢193.18 million in 2007 to GH¢245.48 million in 2008, representing a 27.07% boost for the year.
The Gross Profit position, however, improved by more than proportionate margin of 38.84% as a result of the firm's ability to control its Cost of sales for the period. This, in addition to cost cutting measures on the other expenses of the company, especially the Direct Operating Expense resulted in about 68% improvement in the Company's Operating Profit position from GH¢6.60million to GH¢11.10 million for the same period. Although Net Finance Expenses and Income tax inched up by 33% and 218% respectively for the period, their impact was minimal.
Net Profit therefore stood at GH¢2.11 million signifying a 1,594.72% increase over the previous year's figure of GH¢0.12 million. This consequently increased the Earnings per Share (EPS) significantly from GH¢0.0002 to GH¢ 0.0044.
The performance of the equity on the Exchange however has not been impressive. During the year 2008, its share price fell by GH¢0.03 to GH¢0.21 and has since not recorded any change. It is currently trading at a P/E ratio of 48 multiples.