January 3, 2024
The Limners and Bards Limited (LAB)
Audited financials for the twelve months ended October 31, 2023:
The Limners and Bards Limited (LAB) for the twelve months ended October 31, 2023, reported a 16% decrease in Operating Revenue totaling $1.12 billion compared to $1.34 billion in the corresponding period last year. Operating Revenue for the fourth quarter had a 10% decrease to close at $211.25 million compared to $233.47 million for the comparable quarter of 2022. Management highlighted, “This decline was primarily attributable to changing customer advertising spending patterns, within the context of the macroeconomic conditions. The revenue achieved was derived from the company’s core business lines: Media totaling $672.9 million, followed by Production with $296.0 million and Agency with $155.7 million.”
Cost of Operating Revenue amounted to $735.83 million (2022: $870.48 million), this represents a decrease of 15% year over year. Consequently, gross profit decreased by 18% to $388.92 million compared to $474.31 million for the twelve months ended October 31, 2022. The company booked gross profit of $74.14 million for the fourth quarter versus $94.34 million reported for the similar quarter of 2022.
Selling and distribution expenses increased by 165% to close at $2.75 million (2022: $1.04 million), while administration increased by 7% from $315.94 million in 2022 to $338.78 million in the period under review. As a result, total operating expenses for the twelve months ended October 31, 2023, amounted to $341.53 million, an 8% increase relative to $316.98 million reported in 2022.
LAB also highlighted, “Higher expenses are primarily due to talent cost – as the company builds capacity to adequately meet future demands- computer software licenses and depreciation and amortization costs. The consolidated performance was affected by a $2.3 million loss recorded by Scope Caribbean. Scope is in its second year of operation and continues to explore other revenue streams.”
Profit before net Finance cost and taxation for the twelve months ended October 31, 2023, amounted to $54.17 million, a 65% decrease relative to $153.66 million reported in 2022.
Net finance income totalled $2.44 million. (2022: Net finance cost of $10.53 million).
Profit before Taxation for the twelve months ended October 31, 2023, amounted to $56.55 million, a 60% decrease relative to $143.06 million reported in 2022. Profit before Taxation for the fourth quarter amounted to $175,041 (2022: Loss of $386,102).
Taxation for the twelve months ended October 31, 2023, had a 22% decrease to reach $764,945 (2022: $978,813).
Net profit for the twelve months amounted to $57.32 million, a 60% decrease from the $144.04 million reported in 2022. For the fourth quarter, Net profit was $345,992 (2022: Net loss of $264,639).
Consequently, Earnings Per Share for the twelve months amounted to $0.06 (2022: EPS: $0.15). The number of shares used in these calculations was 945,690,252.
Notably, LAB’s stock price closed the trading period on January 02, 2024, at a price of $1.72 with a corresponding P/E ratio of 28.38x.
Balance Sheet Highlights
The company’s assets totalled $917.59 million (2022: $892.08 million). The increase in total assets was primarily driven by a $18.64 million uptick in ‘Accounts receivables’ to close at $371.70 million (2022: $353.06 million). Also, purchases of new production equipment to facilitate future growth saw a $11.39 million increase in ‘Property, plant and equipment’ to close the period at $83.29 million (2022: $71.90 million).
Shareholder’s equity was $597.87 million (2022: $574.33 million), representing a book value per share of $0.63 (2022: $0.61).
Lab noted, “Currently, we are developing three commercially viable content projects for licensing, with expectations for them to enter production by the second quarter of 2024. In furtherance of our strategic goals, we continue in our strategic partnership with Alliance Cinema, a distinguished finance and distribution company based in Los Angeles.”
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