February 18, 2021
The Limners and Bards Limited (LAB), for the first quarter ended January 31, 2021, reported a 35% increase in operating revenues to $356.26 million, up from $263 million booked in 2020.
Cost of operating revenue rose by 40% for the period to $241.09 million (2020: $172.72 million). Consequently, gross profit for the period rose by 28% closing at $115.18 million compared to $90.28 million for the same period last year.
The Company reported a 29% increase in administration expenses to $52.67 million (2020: $40.70 million) due to “staff costs (due to increase work volume), repairs and maintenance of production equipment and depreciation and amortization costs” as per LAB. Also, selling and distribution costs for the quarter totaled $504,095 compared to $384,300 for the previous period. Therefore, total operating expenses amounted to $53.17 million, a 29% increase from the previous period which was $41.09 million. However, profit before net finance cost and taxation rose by 26% to $62.01 million (2020: $49.19 million).
Net finance income amounted to $4.93 million versus a net finance cost of $145,332 booked in 2020. This was as a result of a surge in finance income to $7.04 million compared to $1.22 million for the same quarter ended January 2020. Finance cost for the three months closed at $2.11 million (2020: $1.36 million).
The Company reports a gain in value of investment classified as FVTPL of $80,586, relative to a loss of $139,682 booked in 2020 corresponding quarter.
Profit before taxation amounted to $67.02 million (2020: $48.91 million). There was no taxation booked for the period, as such net profit for the first quarter grew by 37% to $67.02 million (2020: $48.91 million).
Earnings per share (EPS) for the first quarter amounted to $0.07 compared to $0.05 for the corresponding quarter for the prior year. The trailing twelve month earnings per share amounted to $0.15. The number of shares used in our calculations is 945,690,252 units. Notably, LAB’s stock price closed the trading period on March 18, 2021 at a price of $2.62 with a corresponding P/E of 17.06 times.
Balance Sheet Highlights:
As at January 31, 2021, the Company reported total assets of $680.76 million, an 22% rise when compared to $555.84 million a year ago. This was as a result of ‘Cash and cash equivalents’ and ‘Right of use asset’ which closed at $342.25 million (2020: $248.77 million) and $51.97 million (2020: nil), respectively.
Shareholders’ Equity as at January 31, 2021 was $461.27 million compared to $386.06 million a year ago. This resulted in a book value per share of $0.49 compared to $0.41 in 2020.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
