- For the 6-month period ending April 2021, The LAB reported a net profit of $113.56Mn (EPS: $0.12), a 31.0% (or $26.89Mn) increase over H1 2020 on the back of brisk growth in operating revenue (31.3%) and a $11.72Mn rise in net finance income.
- Revenue growth was supported by an expansion in both the production and media segments of the business, which saw increases of 83% (or $106.70Mn) and 18% (or $43.50Mn), respectively.
- This was enough to outweigh the 28.0% rise in the company’s indirect expenses and 36.3% increase in direct costs. The higher indirect costs were reflective of greater staff costs due to increased work volume, repairs and maintenance of production equipment, and depreciation and amortization charges. Despite the increase, total expenses as a percentage of revenue remained relatively flat at 16.2% compared to 16.7% in the previous period.
- Since the start of the year, the LAB’s stock price has increased by 2.2% to close trading at $3.13 at the end of June 17, 2021. At this price, the stock trades at a P/E of 19.6x earnings, which is below the junior market average of 24.3x earnings.
(Source: Company Financials)