By Durrant Pate/Contributor

Creative and advertising company Limners and Bards Limited (The LAB) is reaping significant benefits from its cost-cutting measures that have netted savings in administrative expenses.

Administrative expenses were slashed by around 18 per cent during its combined three quarters ended July 31, 2024, when compared to 2023. This includes the subsidiary, Scope Caribbean, whose principal business is the scouting, placement, and management of talent while expanding and maintaining a database of quality talent. 

Administrative, selling and distribution expenses went down by $47.5 million or 18 per cent in comparison to the corresponding period last year. 

Higher net profits attained

The reduction in expenses was primarily due to a contraction in contractor and staff costs. Arising from this, The LAB achieved higher net profit compared to the corresponding period in 2023, reaching $83.5 million in July 2024, representing a 46.7 per cent increase. 

This growth in net profit was driven by the company’s strong emphasis on the agency segment of the business for the review quarter, as it continues to build brands. Revenues for the period under review went down by 18 per cent, totalling $752.80 million compared to $913.50 million in 2023.

This decline was primarily attributable to a reduction in media during the period. Notwithstanding this, the agency segment outperformed the comparable period. The revenue achieved was derived from the company’s core business lines: media totalling $407.6 million, followed by production with $190.5 million, and agency with $154.6 million.

Revenues went down

Operating revenue for the third quarter also decreased by 18 per cent to close at $307.20 million compared to $374.35 million for the comparable quarter of 2023. Cost of operating revenue amounted to $468.26 million (2023: $598.72 million), representing a decline of 22 per cent year over year. 

Shareholders’ equity grew to $681.4 million, up from J$597.5 million or 14.0 per cent over the corresponding period last year. The LAB maintained a strong balance sheet with an improved cash position over the comparable period. 

Additionally, the company’s asset base increased as the entity reinvested in the business, upgrading film studio facilities. The consolidated balance sheet saw total assets growing by $161.2 million or 17.1 per cent to J$1.1 billion compared to J$941.2 million in the corresponding period. 

This increase in assets is driven by building and film studio facilities improvement and purchases of new production equipment to facilitate future growth. Current Assets amounted to J$846.7 million, increasing by J$59.9 million over the prior year. 

Cash and cash equivalent increased by $25.5 million over the corresponding period last year. Management continues to maintain tight monitoring and control over receivables.