Posts three months net profit of J$10.11 million

Durrant Pate/Contributor

Jamaican listed educational training institute, iCreate Limited (iCreate) is rebounding from the net loss of J$32.26 million posted last year to eke out a modest profit during the first quarter of this year.

For the three months ended March 31, 2022, the company made net profit of J$10.11 million relative to a profit of J$1.91 million for comparable period in 2021. Operating profit for the quarter closed at J$11.19 million in contrast to J$4.20 million for the corresponding quarter of 2021.

Finance cost for the first quarter amounted to J$1.08 million relative to J$2.29 million documented last year.

Massive jump in revenues

Revenues for the first quarter amounted to J$46.39 million, representing a massive jump of 451 per cent up from the J$8.42 million reported a year prior. Total direct cost for the quarter under review went up to J$21.11 million, which is 1221 per cent more than 2021 amount of J$1.60 million.

The management of the Jamaican creative company reports that the “revenue growth is attributable to the various initiatives announced by the company at its recent annual general meeting around the plan to deliver our 2-to-1 financial strategy, which is to deliver US$2 million in revenues and US$1 million in profits. Our core business, the Institute/Education division to consumer to business to business with a focus on gaining more corporate clients and partnerships”.

iCreate currently has three major long-term corporate training partnerships. The management points out that, “we have cleared all our principal tax payments, up to date with our loan obligations and have significantly cleared off our at risk payables. The investments from both Kintyre Holdings Limited and Dequity have contributed to a strengthened Balance Sheet, in addition to enabling us to invest in the leadership team needed to take us to the level of desired growth and profitability”.

Other income for the quarter was a mere $8,051 relative to J$5.37 million for 2021. As such, total income for the three months amounted to J$25.29 million compared to J$12.19 million for the first three months of 2021.

Administrative expenses rose 91 per cent to J$13.40 million (2021: J$7.02 million) for the three months, while depreciation & amortization fell by 28 per cent to close at J$696,857 compared to J$971,053 booked for the prior corresponding period. As such, total operating expenses for the quarter closed at J$14.10 million, 77 per cent more than the prior year same period’s operating expense of J$7.99 million.

ASSETS DECREASED

Consequently, earnings per share (EPS) amounted to J$0.05 compared to an EPS of J$0.01 for the same quarter of 2021. iCreate traded on Monday on Tuesday at J$3.24.

As at March 31, 2022, total assets decreased to close at J$52.69 million (2021: J$54.74 million). The decrease was largely due to decrease in ‘Property, Plant and Equipment’ and ‘Trade and Other Receivables’, which closed at J$5.18 million (2021: J$16.29 million) and J$14.34 million (2021: J$19.03 million) respectively.

Shareholder’s equity totaled J$19.67 million compared to the J$5.41-million deficit quoted as at March 31, 2021. This resulted in a shareholders’ equity per share of $0.10 relative to a shareholders’ deficit per share of J$0.03 the prior year.