Shareholding pattern
PACE Pakistan Limited is mostly owned by the local general public- at 63.5 percent. Associated companies, related parties and undertakings own about 15 percent shares in the company. Of this Sisley Group of Company Limited holds the majority of the shares. The directors, CEO, their spouses and minor children hold a very little share in the company.
Historical and operational performance
PACE Pakistan Limited's performance has been fluctuating through the years with margins following a similar trend. However, in the last half of the decade FY18 experienced the highest top-line but this was not reflected in the bottom-line, with net margin declining and operating and gross margins depicting changes only marginally.
During FY19, the net margin hit an all-time low while the top-line also declined by about 31 percent. The latter was due to the sale of shops in Gujrat, Model Town Extension and MM Alam plazas in the preceding year, which was missing in FY19. While PACE was able to record a positive gross profit of Rs94 million as opposed to a gross loss of Rs8 million, net margins were marred by exchange loss on foreign currency convertible bonds due to devaluation of the Pakistani currency from Rs121.6 in FY18 to Rs164 in FY19, resulting in a net loss of Rs928 million, the highest in the last five years.
Quarterly results and future outlook During 1QFY20, PACE Pakistan Limited was able to increase its top-line year on year in addition to reducing cost of sales, resulting in improved gross margins from 15 percent in 1QFY18 to 39 percent in 1QFY20. Moreover, with the stability in the currency, the exchange loss translated into exchange gain, eventually leading the company to record a positive net profit of Rs99 million for the period as compared to a net loss of Rs79 million in 1QFY19.
The company has been facing liquidity problems since a few years with current liabilities exceeding current assets. The company was unable to cash receivables and repay lenders thus casting doubt on the company's ability to continue as a going concern, as per the company's annual report.
By delivering important development projects such as Pace Towers in FY20, the company hopes to generate cash flows internally by 'converting non-income producing assets to cash flowing operating assets'.
======================================================================== PACE: Pattern of shareholding as at June 30, 2019 ======================================================================== Categories of shareholders % ======================================================================== Directors, CEO, their spouses and minor children 0 Associated companies, undertakings and related parties 15.3 Banks, DFIs, and NBFIs 0.45 Insurance companies 0.13 General public: Local 63.51 Foreign companies/organisations/individuals/ (repatriable bases) 12.44 Others-Joint stock companies 8.03 ======================================================================== Total 100 ========================================================================
Source: Company accounts
=========================================================================================== PACE: Quarterly results =========================================================================================== Rs (mn) 1QFY20 1QFY19 YoY =========================================================================================== Sales 141 107 31.78% Cost of sales (86) (91) -5.49% Gross profit 55 16 243.75% Administrative and selling expenses (28) (30) -6.67% Other income 11 9 22.22% Exchange gain/(loss) on foreign currency convertible bond 142 (46) -408.70% Profit/(loss) from operations 180 (51) -452.94% Finance costs (41) (27) 51.85% Profit/(loss) before tax 139 (78) -278.21% Taxation (40) (1) 3900.00% Profit/(loss) for the year 99 (79) -225.32% EPS 0.35 (0.29) ===========================================================================================
Source: Company accounts