Revenues up 38.8% to end the first quarter at $356.3 million

Advertising agency, The Limners and Bards Limited (LAB) continued its profitable run into 2021, even with a slow down in advertising agency business.

Having ended 2020 very strong, recording a 34 per cent jump in net profits for the year, the sole listed advertising agency on the local stock market started its 2021 first quarter in the same vein.

Net profits for the quarter ended January 31, 2021 was $67.02 million, up $18.11 million or 37 per cent over the J$48.90 million recorded for the comparable period in 2020.

However, gross profit margin for the January 2021 quarter decreased by 2.0 percentage points to 32.3 per cent, reflective of a change in revenue mix relative to the prior period. During the same period, administration expenses have increased by $12 million or 29.4 per cent in comparison to the previous three-month period.

These increases are primarily attributable to staff costs (due to increase work volume), repairs and maintenance of production equipment and depreciation and amortization costs. Even with this increase, administrative expenses as a percentage of revenue remains relatively flat at 14.9 per cent compared to 15.6 per cent in the previous period.

Revenues were up 38.9% as core business improved

Revenue for the January 2021 quarter was J$356.3 million, up 38.9 per cent compared to $263 million for the corresponding period last year. The revenue growth is attributable to increases in the company’s core business, media placement (up $21.3 million or 16.6 per cent) and production (up $72.8 million or 92.3 per cent).

These increases were to some extent offset by reduction in advertising agency (down $0.9 million or 1.7 per cent) during the period. Gross profit increased by 27.6 per cent or $24.9 million over the previous three-month period.

The balance sheet shows a $124.9 million, or 22.5 per cent increase in total assets over the corresponding period last year. The major items contributing to the increase include recognising a right – of – use asset, purchase of intangible assets, offset to some extent by the sale and lease back of building.

Cash and cash equivalent also increased by $93.5 million reflecting a high liquidity position.