Revenues up 32% for the last three quarters

Revenues at listed advertising company, Limners and Bards are set to hit the $1-billion mark this year, based on current trend.

Revenues for the nine-month period ended in July amounted to $942 million, which is an increase of 37 per cent from $686 million recorded for the comparable period in 2020. Based on this trend the full year, which ends this month end, should see revenues hitting the billion dollar mark.

For the full year of 2020 revenues amounted to $912 million. For the last three quarters profit are up 32 per cent from $108 million to $142 million with earnings per share of 15 cents.

Third quarter profits climbed 35 per cent from $21 million to $29 million from a 50 per cent rise in revenues from $215 million to $323 million. The revenue growth was driven by media placement (up $142.4 million or 39.4 per cent) and production (up $115.9 million or 62.2 per cent).

Less revenue coming from agency business

There was a reduction in agency business, down $2.4 million or 1.8 per cent during the period under review. In their quarterly report to shareholders, the management team of Chairman Steven Gooden and Chief Executive Officer Kimala Bennett highlighted that the company enjoyed a big jump in finance income in the quarter and year-to-date periods.

This was evidenced by a rise in income of $5.5 million for the quarter, up from $1.4 million in 2020 and $20.5 million for the nine months from $3.6 million last year. Gross profit rose 25 per cent to $285 million for the nine months to July, from $227 million and $82 million up 35 per cent from $61 million. 

Gross profit margin slipped to 30 per cent for the nine months to July, up from 33 per cent in 2020 and for the latest quarter 25 per cent from 28 per cent in 2020. Administration expenses increased $38.6 million or 32.4 per cent in comparison to the previous nine months period.

These increases are primarily attributable to staff costs (increased work volume), repairs and maintenance of production equipment, depreciation and amortization charges and lease interest. Even with this increase, administrative expenses as a percentage of revenue remains relatively flat at 16.7 per cent compared to 17.3 per cent in the previous period.

Administrative expenses rose a robust 44 per cent to $57 million in the quarter and increased 32.4 per cent in the nine months to $157 million but the year-to-date amount remains steady at 15.3 per cent of sales revenue. This third quarter results represents 17.7 per cent of sales down from 18.5 per cent in 2020, well below the growth in revenues.  

Expenses were flat with successful containment initiatives

Sales and distribution expenses increased from zero per cent to $8,000 in the quarter and were flat at $537,000 for the nine months. Finance cost rose in the quarter to $32,000 from $21,500 in 2020 and from $4 million to $5.6 million for the nine months.

Gross cash flow brought in $155 million, the paying $70 million dividends the operations added $68 million to $380 on hands the beginning of the year to end at $449 million at the end of July. Shareholders’ equity stood at $536 million, with long term borrowings at $106 million and short term at $3 million. 

Current assets ended the period at $657 billion, including trade and other receivables of $184 million, cash and bank balances of $449 million. Current liabilities ended the period at $185 million. Net current assets ended the period at $472 million.

The company paid two dividends of 7.4 cents in January and 3.6 cents in August this year, amounting to $94 million. Net asset value is $0.57, with the stock selling at six times book value.