Limners and Bards reported strong first quarter results with rising revenues and profit for the first three months of the new fiscal year. Revenues for the quarter ending in January this year grew a strong 36 percent over the 2020 period to $356 million from $263 million, 
with profit rising 36 percent to $67 million as cost of operations rose 38 percent over the 2020 period.
Profit for the quarter is more than 50 percent of the profit of $127 million made in the fiscal year ending October 2020.
The growth in revenues continues the increase of 31 percent enjoyed in 2019 over 2018 and 44 percent in 2020 over 2019. “The revenue growth is attributable to increases in the company’s core business, media placement (up $21.3 million or 16.6 percent) and production (up $72.8 million or 92.3 percent). These increases were to some extent offset by reduction in advertising agency (down $0.9 million or 1.7 percent) during the period,” Steven Gooden, Chairman and Kimala Bennett, Chief Executive Officer, stated in their report to shareholders in their comments on the results for the first quarter.
The principal activities of the company is that of an advertising and public relations agency and have several large Jamaican businesses as clients.
Kimala Bennett, Chief Executive Officer of The Lab.
Cash and cash equivalents climbed to $342 million from $249 million at the end of the first quarter in 2020 but is down from $380 million at the end of the fiscal year ended October last year after the company paid $70 million in dividends. Current assets ended at $560 million, with current liabilities at $157 million, leaving them in a healthy working capital position. Shareholders’ equity stood at $461 million at the end of the 2021 first quarter, slightly lower than the $464 million at the end of October last year.
The company seems set to nearly doubling profit for the full year, with a profit of approximately $200 million and earnings per share of 20 cents. The stocks traded at $2.80 on the Junior Market of the Jamaica Stock Exchange on Friday last, with a PE of 14 based on projected earnings.
The stock seems to be meeting resistance at $3, after trading at a record high shortly after listing in 2019 when it hit $4. This past week following the results, it traded at $2.95 when 1.1 million units traded, followed by 3.1 million on Friday, the highest daily volume for some time. Prior to December 2019, it hit $3 and again in December 2020, $3.10 and then retreated, but could move up to $3.30 with a PE of 16.5 times this year’s earnings.
