Revenues at Limners and Bards declined 11 percent in the January 2024 quarter to $219 million from $240 million in 2023 but a 16 percent decline in cost of sales resulted in gross profit falling by a mere 4 percent to $92 million from $96 million in 2023 and contributed in pretax profit jumping 216 percent to $20 million versus $6.4 million in 2023 before a recovery of $6 million in Impairment recovery on financial assets.
The net results after tax coming at a healthy $26 million sharp jump from just $6 million in 2023, a B 330 percent year over year increase with earnings per share coming in at 3 cents versus 1 cent in 2023. ICInsider.com forecast is for full year earnings of 15 cents per share, even as the advertising market is currently weighted down by soft demand that affects revenues for both production and media business segments.
Helping to boost profit was a 21 percent decline in administrative costs to $62 million from $79 million in the prior year.
Depreciation charges increased marginally to just over $6 million from $6 million in the prior year and finance costs climbed to $2.6 million from $3.5 million in 2023.
The operations delivered gross cash flows of $32 million and ended with Net cash provided by operating activities of $126 million, with accounts receivable contributing $126 million.
Segment results show varying fortunes during the quarter compared to that of the previous year with production generating just $29 million in revenues versus 58 million in the previous year with a gross profit of $10 million down from $29 million in 2023 while the media segment delivered $118 million in revenue down from $135 million in the previous year with profit slipping marginally $17.7 million in 2024 from $18.4 million in the previous year while there was a significant climb 32 percent in the Agency segment to $71.6 million from $54 million in 2023 with gross profit of $61 million up Bly by 37 percent from $44 million in the previous year.
Current assets amounted to $732 million up from $624 million in 2023 with cash and cash equivalent amounting to $469 million up from $327 million in the previous year and current liabilities were $181 million in 2024 versus $140 million in the previous year and long term liabilities amounted to $104 million $102 million in the previous year. Shareholders’ equity ended at $624 million up from 1748 billion in 2024.
In the directors’ report to shareholders, “the company remains fully focused on executing its strategy of diversifying its income, through engaging new clients and the introduction of new service lines. These strategic endeavours are aligned with our company’s expansion strategy into emerging markets, all aimed at fostering sustainable growth, increased revenues, enhanced profitability; while proactively anticipating the evolving needs of our valued clients and enhancing shareholders’ value.
In keeping with the above objective, we “have successfully completed the pilots for two TV/web series, “SEEN” and “Jenna In Law, additionally, pre-production for our first feature film, “Love Offside,” is currently underway, with production scheduled to commence in June 2024.”
The stock traded on the Junior Market of the Jamaica Stock Exchange at $1.34, on Friday, with a PE of 9 times projected earnings for 2024 which is below the market average of 12.5.
Market watch spotlight on Junior Market
The focus this week is the entire Junior Market that remains severely undervalued, notwithstanding that it made up much-lost grounds in the past week. The Lab is the first stock to watch from this sector.
NCB Financial third-quarter results were far from inspiring with operating profit being lower in the quarter than for the prior year’s results, at the close on Friday there was good selling on offer that seems likely to keep a lid on the price for a while. NCB reported Operating profit of $6.46 billion in the June 2019 quarter, down from $8.14 billion in 2018. A $700 million net gain in associated company results eased the difference somewhat.
Barita Investments is back at the record high of $83 it closed at the close on Friday, up from $72 at the end of the previous week. Importantly, supply has mostly dried up except for a block of 1 million units offered by Barita at $98 per share. Shareholders passed the resolution at last week’s extraordinary general meeting for a rights issue that will see 106 million shares or around one for every 15 shares of shares owned offered to shareholders, at an expected price in the $40 region.
Results for Caribbean Cement are out by but reports indicate that the company reported increased sales for the June quarter but lower profit than in 2018, due mainly to $485 million incurred as foreign currency losses. The company reported 43 cents per share versus 79 cents in the similar quarter in 2018. For the half-year, Carib Cement reported earnings of $1,79 compared to $1.18 in 2018. The company looks like earning $5 per share for the full year with increased second-half sales. Do not look for the price of the stock to move up any time soon, with these results
Jamaica Broilers and Jamaica Producers may not break out just now but there is very limited selling and good news could push them higher at any time. Investors who thought that the sky was the limit for Wigton Windfarm may be having second thoughts with the company posting their full-year results, with earnings excluding foreign exchange gains or losses working out at 5 cents per share going forward. The stock seems poised to remain under $1 for a long time. More selling came for Radio Jamaica in the past week but with first-quarter results due mid-August, the stage could be set for a break beyond the $1.40 price level.
Sygnus Credit Investments is coming into its own with a limited supply of the stock for sale, the price closed at a record high at the close of the past week and may and could move higher this week. investors should continue to watch it. Wisynco Group traded close to $30 in the past week pushing the PE up considerably. It could settle just below the $30 range for a while.
The Junior Market finally found its footing in moving solidly higher during the past week to within less than 100 points from the previous record high in 2018. With the entire market severely undervalued, just about all stocks are to be watched. Some are more attractive than others and should enjoy a greater focus.
Blue Power closed on Friday with strong buying interest that suggests higher price ahead arising from a proposed split-up of the company into two separate ones. Caribbean Flavours has a limited supply of stocks for sale and is worth watching. Fontana pulled out of the fall to $7.41, in the previous week as demand pushed the price over $8. The branch in Kingston could influence investors to add the stock to their portfolio. Elite Diagnostic with rising demand and slowing supplies could bounce, having traded at $5. The company’s new Drax Hall branch in St Ann is set to open in August and will add to revenues and profit at a later stage. Elite has more than 387,000 units on offer at $5 and that could constrain upward price movement for some time. Jamaican Teas reported nine months results of 32 cents per share compared with 20 cents last year. Investors reacted positively to the results pushing the stock up to $5, but supply on sale is limited and could encourage more price movement this week. Lasco Financial price bounces around $4.50. The stock is undervalued and should see increased buying interest, with release of June quarter results, due out shortly. In 2018, first-quarter results were released on the 17 of July. Lasco Manufacturing released first-quarter numbers on the 31 of July last year and Lasco Distributors released theirs on the 19. The results could move the price of the stocks higher. Limners and Bards climbed 30 cents to settle at a record high of $1.30 with just 100 shares changing hands on the first day of trading, the stock closed with the bid at $1.65 and looks poised to hit $2, the stock was on offer at $2.95 at the close on Friday. Medical Disposables looks poised to move higher and first-quarter numbers will play an important role in further gains and Stationery and Office Supplies hit a record of $12 during the past week and should move higher with little supply offered for sale.