THE Limners and Bards (LAB) Limited on Monday reported that on closing its financial year, the company has achieved a 52 per cent year-on-year increase in net profits, climbing to $94.7 million when compared to $62.3 million in the previous year.

The advertising and production company, which during this year created history by becoming the first of its kind to list on the junior market of the Jamaica Stock Exchange, has said that the end of this financial year has shown significant annual growth for the company.

“Gross profits increased by 39.4 per cent year on year, increasing by $64 million to $226.7 million total. Total annual revenue surged ahead some 30.8 per cent from $483.1 million last year to $631.8 million. Gross profit margins of 35.9 per cent also increased from 33.7 per cent as recorded in the previous financial year, while net profits grew from 12.9 per cent to 15 per cent,” a release quoted.

For the financial year the business has also reported a $35 million increase in administrative selling and distribution expenses, representing 18.6 per cent of total revenues when compared to 17 per cent in the prior year.

The company’s management noted that this increase was due to a rise in work volume which increased staff costs and contracted labour.

The company’s board of directors for this financial year also approved a dividend payment of two cents per share, to be made on January 31, 2020 to shareholders, citing an ex-dividend date of January 2.

The over a decade- old creative agency has also reported increase shareholder’s equity by 189.9 per cent to $356 million, up $233.2 million year over year.

“The business has doubled its total assets with a 100.9 per cent increase which raises total annual assets from $243.1 million to $488.5 million.

The LAB’s current ratio of 4.69:1 increased from 2.15:1 last year, demonstrating increased capacity to cover liabilities. Earnings per share increased from $0.08(diluted) to $0.12,” the release said.

The price per share at the opening of the public offer was $1.00 per share and is now traded on the stock exchange averaging rates between $2.75-$3.00.

— Kellaray Miles