iCreate reports 54% increase in three months net profit

May 17, 2021

iCreate Limited (iCreate) the three months ended March 31, 2021 reported revenues of $8.42 million, 66% down from the $24.51 million reported a year ago.

Total direct cost for three months amounted to $1.60 million, 69% less than 2020’s three months direct cost of $5.18 million.

Other income for the quarter amounted to $5.37 million relative to $30,288 for 2020. As such, total income for the three months amounted to $12.19 million compared to $19.36 million for the first three months of 2020.

Administrative expenses fell 47% to $7.02 million (2020: $13.29 million) for the three months, as well as Depreciation & amortization which contracted by 0.4% to close at $971,053 compared to $974,855 booked for the prior corresponding period. As such, total operating expenses for the quarter closed at $7.99 million, 44% less than the prior year same period’s operating expense of $14.27 million.

Operating profit for the quarter closed at $4.20 million in contrast to a profit of $5.09 million for the corresponding quarter of 2020.

Finance cost for the first quarter amounted to $2.29 million relative to $3.85 million documented last year same time. Consequently, profit before taxation amounted to $1.91 million versus a profit of $1.25 million twelve months earlier.

Taxation for the current and previous three months amounted to nil thus resulting in net profit after taxation of $1.91 million relative to a profit of $1.25 million for the three months ended March 31, 2020. Management noted, “This has been attributed to a companywide cost reduction effort which included closing down our Montego Bay office and reducing operating expenses in Kingston, Jamaica. We are pleased with the efforts and based on this; we were able to deliver net profit margins of 22.72% for the quarter.”

Consequently, earnings per share (EPS) amounted to $0.010 compared to an EPS of $0.006 for the same quarter of 2020. The trailing twelve months LPS is $0.05. The number of shares used in this calculation was 197,592,500 shares. iCreate traded on May 14, 2021 at $0.79.

iCreate noted, “Our main focus since the beginning of the pandemic is to ensure survival. We are pleased with the fact that we have been able to manage expenses, continue to deliver quality training in a critical moment for the Caribbean workforce and keep the business running.”

Balance Sheet at a Glance:

As at March 31, 2021, total assets increased to close at $54.74 million (2020: $57.67 million). The decrease was largely due to a decrease in ‘Cash and bank balances’ and ‘Property, Plant & Equipment’ which closed at $1.35 million (2020: $4.94 million) and $16.29 million (2020: $19.74 million) respectively.

Shareholder’s deficit totaled $5.41 million compared to the $3.74 million quoted as at March 31, 2020. This resulted in a shareholders’ deficit per share of $0.027 relative to a shareholders’ deficit per share of $0.019 the prior year.


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