LAB reports nine-month net profit of $142.91 million

September 14, 2022

The Limners and Bards Limited (LAB), for the nine months ended July 31, 2022, reported a 2% increase in revenues to $1.11 billion (2021: $942.02 million). Revenues for the quarter rose by 2% to $329.61 million (2021: $322.94 million).

Cost of operating revenue rose by 11% for the period to $731.34 million (2021: $657.22 million). Consequently, gross profit for the period rose by 33% closing at $379.97 million (2021: $284.80 million). For the quarter, gross profit increased 28% to $105.14 million (2021: $82.33 million).

The Company reported a 45% increase in administration expenses to $227.18 million (2021: $157.08 million). Selling and distribution expense increased by 27% to $683,783 (2021: $536,986). For the quarter, the Company reported increase of 41% and 486% in administration and selling and distribution expenses which closed at $80.46 million (2021: $57.11 million) and $46,970 (2021: $8,015) respectively.

Consequently, profit before net finance and taxation rose by 20% to $152.10 million (2021: $127.18 million).

Net finance income amounted to $10.02 million (2021: $14.91 million). This consisted of finance income of $2.95 million (2021: $20.53 million) and finance cost of $12.98 million (2021: $5.62 million).

LAB booked a loss in value of investment classified as FVTPL of $21,490 (2021: income of $91,331).

Profit before taxation amounted to $142.05 million (2021: $142.18 million). Tax of $857,350 was charged for the period (2021: nil). As such, net profit for the nine months grew marginally to $142.91 million (2021: $142.18 million). Net profit for the quarter was reported at $21.19 million compared to $28.62 million booked in the corresponding quarter of 2021.

Earnings per share (EPS) remained stable at $0.15 for the nine months relative to 2021, while for the quarter, EPS amounted to $0.02 (2021: $0.03). The twelve months trailing EPS amounted to $0.17. The number of shares used in our calculations is 945,690,252 units. Notably, LAB’s stock price closed the trading period on September 14, 2022 at a price of $2.79 with a corresponding P/E of 16.88 times.

Balance Sheet Highlights: 

As at July 31, 2022, the Company reported total assets of $992.73 million, a 20% rise when compared to $826.96 million a year ago. This was mainly as a result of ‘Accounts Receivable’ which closed at $449.29 million (2021: $183.70 million).

Shareholders’ Equity as at July 31, 2022 was $574.53 million compared to $536.42 million a year ago. This resulted in a book value per share of $0.61 (2021: $0.57).

 

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.

2022-09-14T16:16:39-05:00