June 15, 2022

The Limners and Bards Limited (LAB), for the six months ended April 30, 2022, reported 26% increase in revenues to close at $781.70 million versus $619.08 million booked in 2021. Revenues for the second quarter rose by 29% to $338.22 million (2021: $262.81 million). The LAB stated that, “the revenue growth is attributable to increases in the company’s core business, media placement (up $149.6 million or 53.4%) and advertising agency (up $16.1 million or 71.3%). Production was down $9.5 million or 6.0%.”

Cost of operating revenue rose by 22% for the six months period to $506.87 million (2021: $416.61 million). Consequently, gross profit for the period rose by 36% closing at $274.83 million compared to $202.47 million for the same period last year. For the quarter, gross profit increased 51% to $132.22 million (2021: $87.29 million).

Total expenses for the six months ended April 30, 2022, amounted to $147.36 million relative to $100.50 million the same period last year. Of this, the Company reported a 46% increase in administration expenses to $146.72 million (2021: $100.49 million). “These increases are primarily attributable to staff costs (due to increase work volume), repairs and maintenance of production equipment and depreciation and amortization costs.” as per Management. Whereas, selling and distribution expenses amounted to $636,813 (2021: $15,476) for the six months ended April 30, 2022. For the second quarter, total expenses summed to $74.01 million (2021: $47.33 million).

Consequently, profit before net finance cost and taxation rose by 26% to $128.86 million (2021: $101.96 million).

LAB reported a net finance cost of $6.38 million compared to a net financial income of $11.47 million booked for the same period in the prior year. This is due to a 97% decline in financial income to $451,330 from $15.06 million.

Gain in value of investments classified as FVTPL totaled $21,489, relative to the $123,566 booked in 2021.

Profit before taxation amounted to $122.50 million (2021: $113.56 million). There was taxation of $658,811 (2021: nil) for the period under review. Net profit for the six months grew by 8% to $123.16 million (2021: $113.56 million). Net profit for the quarter was reported at $55.60 million compared to $46.54 million booked in the corresponding quarter of 2021.

Earnings per share (EPS) for the six months amounted to $0.13 compared to $0.12 in 2021, while for the quarter EPS amounted to $0.06 versus $0.05 documented in the prior comparable quarter. The twelve months trailing EPS amounted to $0.18. The number of shares used in our calculations is 945,690,252 units. Notably, LAB’s stock price closed the trading period on June 14, 2022 at a price of $2.80 with a corresponding P/E of 16.49 times.

Balance Sheet Highlights:  

As at April 30, 2022, the Company reported total assets of $981.73 million, a 37% rise when compared to $714.83 million a year ago. This was as a result of ‘Accounts Receivable’ which closed at $354.75 million (2021: $195.96 million), reflecting an increase of $158.78 million.

Shareholders’ equity on April 30, 2022, was $590.37 million compared to $507.81 million a year ago. This resulted in a book value per share of $0.62 compared to $0.54 in 2021.

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