January 5, 2023

The Limners and Bards Limited (LAB), for the year ended October 31, 2022, reported 10% increase in revenues to $1.34 billion (2021: $1.23 billion). For the quarter, revenues declined 18% to $233.47 million (2021: $285.19 million).

Cost of operating revenue increased 2% to $870.48 million (2021: $851.40 million). Consequently, gross profit increased by 26% closing at $474.31 million (2021: $375.81 million). For the quarter, gross profit increased 4% to $94.34 million (2021: $91.01 million).

Profit on disposal of assets amounted to $930,934 (2021: nil). For the quarter, loss on disposal of assets amounted to $462,500 (2021: nil)

Total operating expenses increased 34% to $321.58 million (2021: $239.88 million). For the quarter, total operating expenses increased 14% to 93.71 million (2021: $82.25 million). Of the year-end total expenses:

• Administrative expenses increased 35% to $315.94 million (2021: $233.52 million)
• Selling and distribution costs declined 72% to $1.04 million (2021: $3.75 million).
• Impairment losses on the financial assets increased 76% to $4.60 million (2021: $2.61 million).

Consequently, profit before net finance cost and taxation increased 13% to $153.66 million (2021: $135.93 million).

Net finance cost amounted to $10.53 million (2021: income of $17.50 million). Loss in value of investments classified as FVTPL amounted to $69,841 (2021: gain of $69,841).

Profit before taxation declined 7% to $143.06 million (2021: $153.50 million). There was a tax credit of $978,813 (2021: $2.05 million).

As such, net profit for the year end declined 7% to $144.04 million (2021: $155.55 million). For the quarter, net loss amounted to $264,639 (2021: profit of $13.37 million).

Earnings per share (EPS) for the year end amounted to $0.15 (2021: $0.16). For the quarter, LPS amounted to $0.0003 (2021: EPS of $0.014). The number of shares used in our calculations is 945,690,252 units. Notably, LAB’s stock price closed at $2.43 on January 4, 2023 with a corresponding P/E ratio of 15.95 times.

Balance Sheet Highlights:

As at October 31, 2022, the Company reported total assets of $892.08 million (2021: $806.23 million), an 11% increase year over year. This was primarily because of the 59% increase in ‘Accounts Receivable’ which closed at $353.06 (2021: $222.23 million).

Shareholders’ Equity as at October 31, 2022 was $574.33 million (2021: $515.72 million). This resulted in a book value per share of $0.61 (2021: $0.55).

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