Revenues were however up 24.5% to J$443.4 million

Jamaican listed advertising and media company, Limners and Bards Limited (LAB) has seen a slight decline in profits for the first quarter ended January 31.

Net profit decreased by J$0.8 million or 1.2 per cent to J$66.2 million compared to the J$67.0 million made in the first quarter of last year. The decline in profit is mainly due to an increase in staff cost, reduction in finance income and a $1.3-million loss reported by its subsidiary, Scope Caribbean.

The net profit includes finance income of J$0.9 million (three per cent of net profit) compared to J$7.0 million (11 per cent of the net profit) recorded in the corresponding period in 2021. However, the company’s first quarter financials show that if adjustments are made for the losses from Scope and finance income, the net profit would have been J$66.6 million versus J$60.0 million, an 11 per cent increase over the prior year.

Revenue for the quarter came out at J$443.4 million, up 24.5 per cent compared to J$356.2 million for the corresponding period last year. Media placements were up J$93.2 million or 62.2 per cent while advertising agency earning increased to J$3.6 million, representing a 6.4 per cent rise.

However, production was down J$9.6 million or 6.4 per cent. Gross profit margin was stable at 32.2 per cent compared to the 32.3 per cent in 2021.

Big rise in expenses

Administration expenses have increased by J$22.3 million, or 41.8 per cent in comparison to 2021. These increases are primarily attributable to staff costs, repairs and maintenance of production equipment and depreciation and amortization costs.

The consolidated balance sheet shows total assets increasing over the previous year by J$253.2 million or 37.2 per cent to J$934.0 million. Current assets increased by J$208.8 million mainly due to a J$161.5 million increase in receivables and a J$58.0-million increase in cash and cash equivalent.

As for the outlook, the management reports that, “While the COVID-19 pandemic continues to pose a challenge to us resulting in increased costs, we continue to act proactively and implement facilities to protect our staff and clients. Our Work from Home program has proven effective as we minimise exposure of our staff and at the same time maintaining team productivity and engagement. Based on our focus on product and service innovation we remain confident in our future”.