Advertising and talent group Limners and Bards Limited, which trades under the name The LAB, has seen its profitability dipped considerably by J$102.9 million during the half-year period ended April 30, 2023.
Net profit came in at J$20.3 million, a decline of 83.5 per cent or J$102.9 million against the comparative period last year. Revenue for the six-month period amounted to J$539.1 million compared to J$781.7 million, a decrease of 31 per cent or $242.6 million year-over-year.
The consolidated results include The LABs new subsidiary, SCOPE Caribbean Limited, whose principal business is the scouting, placement and management of talent while expanding and maintaining a database of quality talent. The gross profit margin of 35.7 per cent for the current year is on par with 2022.
Media revenues totalled J$306.9 million, followed by ‘production’ with J$129.9 million and ‘agency’ with J$102.3 million. The decline in revenue is primarily due to adverse macroeconomic conditions which resulted in contraction in client spend.
In the meantime, the management continues to actively engage new clients and new revenue streams, which are aligned to the company’s strategy for expansion into new markets to drive growth and profitability while anticipating the needs of clients given the shift in digital marketing trends.
Due to improved collections in receivables a 20 per cent or J$71 million reduction over prior year, total assets of J$893.2 million show a decline of 9 per cent or J$88.5 million compared to prior year.
According to chairman Steven Gooden and CEO Kimala Bennett, “The LAB continues to work assiduously to steer r business to new levels as we remain confident in our strategic approach that is poised to lead to favourable outcomes and increased shareholder value in the future. As the market shifts into a focus on content creation and licensing, we aim to capitalise on growing demand for international content on various video streaming platforms.”
The company has established strategic partnerships with international distributors and have three projects in development, which will see the impact within the next year.