LAB shares triple, profits up
Shares in advertising company Limners and Bards Limited, which trades as The LAB, have nearly tripled since its listing last Friday, pushed by its second quarter results.
The stock listed at $1 and closed trading on Tuesday at $2.94.
The LAB reported sales of $145 million for the second quarter ending June, up $9 million from $136.2 million in the year prior period. Profit before tax grew to $30 million from $24.5 million.
“Over the second quarter we saw an increase in the demand for our production services, resulting in both sales and profit growth,” said said CEO and co-founder Kimala Bennett.
Over six-months, The LAB chalked up sales of $335 million and made a pretax profit of $72.1 million.
The company has three main business streams: agency, which deals with brand strategy, copyrighting, and concept development; media; and production services.
“Our intentions to build out our public relations and digital departments remain in place, and we remain confident of our ability to meet the proposed timelines,” said Bennett. “It is also important to highlight that The LAB is not just an advertising agency but we are also a production company. Further we have begun to diversify our service offerings and have made significant strides in acquiring new clients.”
Bennett says the outlook for the business is favourable in the period ahead.
Sales are seasonally strong during the back-to-school and Christmas periods, when companies ramp up their promotional activities.
“However, depending on the client, their product and their target market, there are other periods when brands engage in increased their marketing activities,” she added.