Administrative expenses as a percentage of revenue remains relatively flat at 16.7%
Advertising agency Limners and Bards Limited is reporting vast improvement in business, which has seen revenues and profits increasing for the nine months ended July 31, 2021.
The company, which trades under the name ‘The Lab’ has seen revenue for the period under review going up by 37.3 per cent to $942 million compared to $686.2 million for the corresponding period last year. The revenue growth was driven by growth in media placement (up $142.4 million or 39.4 per cent) and production (up $115.9 million or 62.2 per cent).
There was reduction in agency bookings of $2.4 million or 1.8 per cent during the review period. Gross profit increased by 25.2 per cent or $57.4 million, while the gross profit margin of 30.2 per cent was down from 33.1 per cent recorded in the previous period.
This is mainly attributable to an increase in direct costs associated with production and media placement.
Net profits up by 31.9%
Net profits have increased by $34.4 million or 31.9 per cent to $142.1 million for the nine-month period compared to the corresponding period ended July 31, 2020. Administration expenses have increased by $38.6 million or 32.4 per cent in comparison to last year.
The management explains that “these increases are primarily attributable to staff costs (due to increase work volume), repairs and maintenance of production equipment, depreciation and amortization charges and lease interest. Even with this increase, administrative expenses as a percentage of revenue remains relatively flat at 16.7 per cent compared to 17.3 per cent in the previous period”.
The balance sheet shows a $184.8 million or 28.8 per cent increase in total assets over the corresponding period last year. Non – current assets increased by $57.5 million mainly attributable to increases in property, plant and equipment, intangible assets right – of – use asset and investment in subsidiary.
Current assets increased by $127.3 million primarily as a result of significant increases in cash and investment balances by $65.9 million (16.9 per cent) and accounts receivable by $57.4 million (45.4 per cent).