Revenues tumble by 44% year-over-year

Durrant Pate/ Contributor

Jamaican listed creative company, iCreate Limited has made another year of loss in 2021, based on its just -released audited financial report for the year.

For the year in review, iCreate is reporting a comprehensive loss of J$32.26 million, up from the comprehensive loss of J$21.99 million booked in 2020.

For the December 2021 quarter, the total comprehensive loss amounted to J$36.13 million versus a loss of J$26.80 million booked for the corresponding period.

The loss per share (LPS) for 2021 amounted to J$0.16 compared to a LPS of J$0.15 for 2020. The loss per share for the December 2021 quarter amounted to J$0.18 relative to J$0.14 reported in 2020. iCreate traded yesterday at J$3.24.

Operating loss for the year closed at J$22.37 million in contrast to a loss of J$13.65 million for 2020. Operating loss for the fourth quarter closed at J$31.94 million, relative to a loss of J$14 million booked in 2020.

Finance cost for the year amounted to J$9.89 million relative to J$15.42 million a year prior. Consequently, net loss for the year amounted to J$32.26 million versus a loss of J$29.06 million in 2020.

Management confident of iCreate’s future

In spite of the poor results, the management is confident about the future and company’s profitability prospects.

According to the management, “based on the plans and strategies being pursued and implemented, the directors and management believe that the company will generate adequate cash flows and profitability which would allow it to continue in operational existence for the foreseeable future. On this basis, the directors have maintained the going concern assumption in the preparation of these financial statements”.

The management adds that the company will be able to realise its assets and discharge its liabilities in the ordinary course of business.

For the year ended December 31, 2021, iCreate eked out revenues of J$32.83 million, which is a 44 per cent decline from the J$58.38 million reported in 2020.

For the fourth quarter, iCreate posted J$1 million in revenue (2020: J$11.25 million).

During the year, the company received capital injection of J$50.5 million and J$18.3 million respectively.

These were convertible loans which are repayable in full, by way of cash or conversion to ordinary shares, subject to the approval of shareholders and regulatory bodies.

The company has not, to date, been able to realise its projected revenues.

Total direct costs amounted to J$8.34 million for the year compared to J$22.13 million for 2020. Other income for the year amounted to J$5.33 million relative to J$34,985 booked in 2020, while the other income for the fourth quarter totalled a mere J$428 (2020: loss of J$33,271).

Operating expenses climbing

Total operating expenses for the year closed at J$52.18 million, up from the J$49.93 million incurred in 2020. Administrative expenses for the year in review closed at J$48.85 million (2020: J$45.94 million) while depreciation and amortization expense amounted to J$3.34 million (2020: J$3.99 million).

Operating expenses for the fourth quarter totalled J$29.86 million (2020: J$11.06 million). Of this, administrative expense increased by 195 per cent to J$29.46 million (2020: J$10 million) for the quarter.

Depreciation and amortization expense, for the quarter, decreased by 62 per cent to J$406,506 (2020: J$1.06 million) compared to 2020. As at December 31, 2021, total assets increased to close at J$75.56 million (2020: J$36.36 million).

The increase was largely due to a $46.41 million increase in ‘Cash and bank balances’ which closed at J$47.12 million (2020: J$6.55 million). Shareholder’s earnings totalled J$9.56 million compared to a shareholders deficit of J$26.98 million quoted as at December 31, 2020.

This resulted in a book value per share of J$0.05 relative to shareholder’s deficit of J$0.14 in 2020.