Advertising and media production firm Limners and Bards Limited (The LAB) reported revenue of JM$356.3 million for the first quarter ended January 31, 2021.
Revenue for the period represents a 38.9 per cent increase over JM$263 million earned during the corresponding period last year.
Net profits increased by JM$18.1 million, or 37 per cent, to JM$67 million for the three-month period.
The LAB is a full-service and fully integrated advertising agency and film production company. The company provides services to clients through three main business segments: production, media, and agency.
The LAB’s clientele currently includes companies with the telecommunications, financial services, food and beverage, gaming and sports, government, education, and non-profit industries.
The first-quarter performance follows the final quarter of 2020, in which revenue rose 55 per cent to JM$225.59 million (2019: JM$145.57 million).
In their remarks, The LAB directors said revenue growth is attributable to increases in the company’s core business, media placement (up JM$21.3 million or 16.6 per cent) and production (up JM$72.8 million or 92.3 per cent).
However, these increases were to some extent offset by reduction in advertising agency (down JM$0.9 million or 1.7 per cent) during the period.
Gross profit increased by 27.6 per cent or JM$24.9 million over the previous three-month period.
However, gross profit margin decreased by 2.0 percentage points to 32.3 per cent, reflecting a change in revenue mix relative to the prior period.
Administration expenses increased in the quarter by $12 million, or 29.4 per cent in comparison to the previous three – month period.
Management said that these increases are primarily attributable to staff costs (due to increased work volume), repairs and maintenance of production equipment, and depreciation and amortization costs.
Even with this increase, administrative expenses as a percentage of revenue remains relatively flat at 14.9 per cent compared to 15.6 per cent in the previous period.
The company’s balance sheet shows a JM$124.9 million or 22.5 per cent increase in total assets over the corresponding period last year.
Management said the major items contributing to the increase include recognising a right-of-use asset, purchase of intangible assets, offset to some extent by the sale and leaseback of a building.
Cash and cash equivalents also increased by JM$93.5 million reflecting a high liquidity position, management stated.