iCreate reports first quarter net loss of $1.48 million

May 16, 2019


iCreate Limited (iCreate) the three months ended March 31, 2019 reported revenues of $11.90 million, up from $11.69 million reported a year ago.

Management noted, “Business Development is also at an advanced stage. The Company has introduced several new courses, to include inter-alia, the Globally Accredited Digital Marketing Associate course and a series of Workshops, beginning with Podcast Production. Our corporate training division is also being expanded with several opportunities already secured, to include signing of two Memoranda of Understanding with The Heart Trust NTA and Kingston and St. Andrew Municipal Corporation, to provide training in the creative field.”

Other income for the quarter amounted tio $190,755 relative to nil for 2019. As such, total income for the three months amounted to $12.09 million compared to $11.69 million for the first three months of 2018.

Administrative expenses rose 53% to $12.82 million (2018: $8.40 million) for the three months. As such, operating profit for the quarter closed at $728,620 in contrast to a profit of $3.29 million for the corresponding quarter of 2018.

Finance cost for the first quarter amounted to $755,332 relative to $270,366. Consequently, loss before taxation amounted to $1.48 million versus a profit of $3.02 million twelve months earlier.

Taxation for the three months amounted to nil million  (2018: $789,147), thus resulting in net loss after taxation of $1.48 million relative to a profit of $2.23 million for the three months ended March 31, 2018. According to the company, “This was primarily due to increased operating expenses of $4.4m associated with our expansion activities.

Consequently, loss per share (LPS) amounted to $0.008 compared to an EPS of $0.011 for the same quarter of 2018. The trailing twelve months LPS is $0.086. The number of shares used in this calculation was 471,266,950 shares. iCreate traded on May 16, 2019 at $0.90.

iCreate noted, “We anticipate that the infusion of cash from our IPO will begin to make a positive impact on our financial performance starting in the second quarter of 2019. Since our formal listing on the Junior Market of the Jamaica Stock Exchange in February 2019, the team has been working assiduously to complete the build-out of our physical spaces in Kingston & Montego Bay, while simultaneously, acquiring the necessary equipment and software to drive the promised expansion. This will enable us to accommodate a larger number of students across our courses, thus increasing our revenues.”


Balance Sheet at a Glance:

As at March 31, 2019, total assets increased close at $51.49 million (2018: $18.09 million). The increase was largely due to increases in ‘Cash and Cash Equivalents’ and ‘Property, Plant & Equipment’ which closed at $19.23 million (2018: $1.09 million) and $15.41 million (2018: $5.35 million), respectively.

Shareholder’s equity totaled $39.29 million compared to the $2.73 million quoted as at March 31, 2018. This resulted in a book value of $0.20 relative to $0.9 the prior year.