Durrant Pate/Contributor

Media and talent company Limners and Bards, which operates as The LAB, is currently developing three commercially viable content projects which, when completed, would bring in incremental revenues into the junior market-listed entity.

This represents the company’s latest strategic pursuit of revenue diversification. No detail was given about the three projects, but what is known is that LAB will be licensing them with expectations for them to enter production by the second quarter of 2024.

The LAB maintains its unwavering commitment to revenue diversification through a series of initiatives encompassing trolley advertising, the acquisition of additional international productions, the pursuit of non-Jamaican projects, and a concentrated effort on content licensing.

In furtherance of our strategic goals, The LAB is announcing the formation of a strategic partnership with Alliance Cinema, a distinguished finance and distribution company out of Los Angeles.

July quarter financial highlights

Revenues for the July quarter closed on J$374.3 million, up J$44.7 million or 13.6 per cent compared to the J$329.6 million 2022, rounding up this period, as the most profitable quarter to date for the financial year. Revenues for the combined three quarters closed on J$913.4 million compared to $1.1 billion for the same period last year, a decline of 17.8 per cent or J$197.8 million.

All operational units within the company continue to maintain steady growth with media revenues totalling J$532.2 million, followed by production with J$228.8 million and agency with J$152.3 million. In its latest quarterly report to shareholders, Chairman Steven Gooden and Chief Executive Officer Kimala Bennett said: “These green shoots materialised in Q3 would have been anticipated based on our strategic drive towards new client acquisition, operational efficiency and initiation of new campaigns for our existing clients.”

The management team remains highly proactive in diversifying The Lab’s revenue stream by engaging new clients and the introduction of new service lines.

Year-over-year performance

Net profits achieved for the quarter under review closed on J$36.6 million, an improvement of J$15.4 million or 73.1 per cent over the J$21.1 million made in 2022. For the second quarter of 2023 net profit went up to J$23.01 million, representing a 168.4 per cent over the J$13.6 million recorded over second quarter of this year

Net profits for the combined three quarters amounted to J$56.9 million, down from the J$144.3 million booked last year. Administrative expenses is up by J$30.4 million or 13.4 per cent in 2023 in comparison to the previous nine-month period.

These increases are primarily due to talent costs, computer software licenses and depreciation and amortization costs. The consolidated balance sheet shows total assets decreasing by J$51.1 million or 5.2 per cent to J$941.5 million compared to J$992.7 million in the corresponding period last year.

Current assets went down by J$41.3 million primarily due to a 6.0 per cent reduction in receivables (J$27.1 million). The reduction in receivables is mainly due to reduced revenue and tight monitoring and control over receivables.

Cash and cash equivalent decreased by J$12.5 million over the corresponding period last year, mainly due to payment of dividends. Gross profits for the quarter (J$122.1 million) improved by J$17.0 million or 16.2 per cent when compared to the corresponding quarter in 2022.

Gross profits for the nine months closed on J$314.7 million, which is J$65.1 million or 17.2 per cent less than the corresponding nine months in 2022.