The LAB Reports Significant Increase In Net Profit

• Limners and Bards Limited reported a 54.4% (or $38.00Mn) increase in net profit to $107.81Mn (EPS: $0.11), for the nine months ended July 31, 2020, relative to the corresponding 2019 period.
• The improvement in the bottom-line was supported by a 41.1% (or $199.87Mn) increase in revenues primarily driven by growth in media placement (up 60.5% or $136.30Mn), advertising agency (up 72.7% or $58.10Mn), and production (up 3.0% or $5.30Mn) year over year.
• Further, the company saw benefits from its 2019 listing on the Junior Market as it started to reap the benefits of the tax exemptions, incurring no tax expenses for this period relative to $18.82Mn reported last year.
• Management has expressed that it will focus on product and service innovation as they actively work on improving efficiencies as they head into the 4th quarter.
• The company’s stock price has declined by 4.0% since the start of the year, closing Tuesday’s trading session at $2.89. At this price, the stock currently trades at a P/E of 20.6x earnings, which is below the Junior Market Others Average of 57.8x.

(Source: LAB Financials)