Profit tumble by 90% while revenues almost cut in half
Advertising and creative company, Limners and Bards Limited has seen a dismal first quarter performance, as profits nose-dived by 90 per cent for the three-month period ended January 31, 2023.
Limners and Bards, which trades as LAB, saw its revenues for the quarter almost cut in half moving from J$443.48 million in 2022 to J$247.76 million for the quarter under review. This represents a J$195.72 million shortfall or a decline of 44.1 per cent. As for profit, the quarter saw LAB eking out a mere J$6.63 million in profit, down from the J$66.22 million posted in 2022.
The consolidated results for LAB include the 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 mainly in the “influencer” space.
Gross profit year-over-year showed a decrease of J$51 million or 35.6 per cent in current year. This result is primarily due to the change in business needs post the pandemic.
Management has therefore actively engaged new clients and new revenue streams which are aligned to its strategy for expansion into new markets. These clients will be onboarded throughout the fiscal year.
Media is the leader in net revenues at J$135.5 million with a gross profit margin of 13.6 per cent or 20 per cent of total gross profit. Agency business achieved revenues of J$54.2 million with a gross profit margin of 82 per cent or 48.2 per cent of total gross profit while Production realised revenues of J$58.1 million and gross profit margin of 50.3 per cent or 32 per cent of total gross profit.
Total assets were J$790.3 million compared to prior year’s J$934 million, a 15.4 per cent decline year over year.
In anticipation of market shifts and to diversify and expand revenue base, the board and management have placed a strong emphasis on content creation.
According to company Chairman, Steven Gooden and Managing Director Kimala Bennett, “the LAB holds an optimistic outlook on content creation and licensing and we aim to capitalise on growing demand for international content on various video streaming platforms. As part of this strategy, we have already established strategic partnerships with international distributors and have three projects in development”.
They expect to see the impact of these efforts within the next nine to 12 months, noting, “the LAB continues to work assiduously to steer our 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”.