Durrant Pate/ Contributor

Advertising and creative outfit The Limners and Bards, which trades as The LAB, is rolling out its ‘Five-in-25’ content plan, which is a key pillar of its revenue expansion strategy.

The ‘Five-in-25’ content plan focuses on the development of five scalable content properties as well as the geographic expansion of the agency and production services, and the monetisation of existing financial and intellectual assets to enhance top-line growth. Chairman Steven Gooden and CEO Kimala Bennett are optimistic about the success of the plan as well as the revenue expansion strategy being rolled out, while affirming that “continued investment in content development also remains a strategic priority”.

“Our efforts are concentrated on expanding and diversifying revenue streams, acquiring new clients, and introducing new service lines that align with emerging market needs. At the same time, we are maintaining a strong emphasis on cost discipline and efficiency. The integration of artificial intelligence into the company’s operations remains a key imperative and is expected to further streamline processes and deliver cost savings, where appropriate. Despite ongoing macroeconomic uncertainty, 2025 has presented key opportunities for us to advance several critical initiatives,” the company said.

The outlook for the company is positive as Gooden and Bennett advised shareholders that the company and its subsidiary, Scope Caribbean, whose core business involves the scouting, placement, and management of talent, remain focused on executing its strategic roadmap amidst continued transformation in the marketing and creative services sector. 

“Together, we are building a stronger, more dynamic future for advertising, production, and entertainment in Jamaica and beyond,” they told shareholders in their foreword, detailing the meagre half-year performance that ended April 30, 2025.

Financial highlights

During the review period, The LAB’s consolidated balance sheet remained sound with a stable cash position, providing the financial flexibility to support ongoing operations and strategic initiatives. Revenue for the half year amounted to $460.2 million, representing a 3.3% increase over the corresponding period in 2024. 

This growth was driven primarily by increased activity in the production and media business segments. Media contributed $240.7 million, followed by production at $151.8 million, and agency at $67.5 million. 

Gross profit amounted to $175.4 million for a 2.7% decline year-over-year. This was due to a higher proportion of revenue being derived from Media, which typically carries lower margins relative to the Agency segment. This shift in revenue mix also resulted in a 2% decline in the company’s net profit margin.

Net profit for the six months closed at $20.6 million, a 58.3% decline from 2024. The decline was primarily attributable to lower gross margins and a reduction in second-quarter revenue, which was largely due to seasonal variations and the timing of project deliveries. 

Rising admin costs 

Operating expenses, comprising administrative, selling, and distribution costs, increased by $14.4 million or 10 per cent compared to the same period last year. This increase primarily reflects strategic investments in talent, particularly in areas critical to the company’s growth agenda, such as business development, content creation, and enhancing the overall customer experience. 

While these investments contributed to higher short-term costs, they are considered essential to scaling the business operations and building long-term shareholder value. 

Balance sheet highlights

Total assets amounted to $1.03 billion, down by $11.2 million or 1.1 per cent, due mainly to normal depreciation. Current assets increased marginally to $865.9 million, up $1.6 million from the prior year. Cash and cash equivalents stood at $332.4 million, down $226 million year-over-year, due primarily to increased investment in the development of proprietary content assets. 

Accounts receivable increased by $39.5 million, and management continues to work closely with clients to manage credit terms and reduce outstanding balances. Shareholders’ equity grew to $659.1 million, up 1.8 per cent from $647.3 million in the prior-year period. 

The LAB remains focused on disciplined execution of its growth strategy with a continued emphasis on improving operational efficiency, diversifying revenue streams, and delivering long-term value to shareholders.