Suspended junior market company, iCreate Limited, has seen its revenue slumped and its small profitability last year transformed into losses during the second quarter ended June 2023.
In its just released June quarter report, iCreate booked year-to-date consolidated revenue of J$43.8 million, which is below the $74.7 million made in corresponding period in 2022. The recently installed management team has explained that “the prior year benefitted from revenue earned from a number of corporate training projects, which were not repeated at the same level in the current year”.
The Training Institute has increased marketing efforts geared at driving sign-up for its programmes. Furthermore, iCreate’s new subsidiaries did not make up the revenue gap during the period under review, in particular Visual Vibe, which was consolidated from June 01, 2023.
Net losses chalked up
The group recorded net losses of J$138.7 million for the half-year ended June 30, 2023. Most of these losses emanated in the second quarter, down from the small profit of J$2.33 million in the comparative 2022 quarter.
The current second quarter loss includes non-recurring Visual Vibe acquisition-related expenses of J$107.5 million and a further J$10.1 million in financing cost, relating to the vendor financing received. When these special items are excluded, the year-to-date net operating loss would be J$20.7 million.
During the second quarter, iCreate got operational control of Visual Vibe.com, a digital out-of-home advertising company, in addition to the previous purchase of 51 per cent equity in GetPAID Group in January 2022, was to have provided the platform for growth through expanded revenues and cash flows.
However, the acquisitions which have now means iCreate is operating in the e-commerce and advertising spaces, did not materialise as expected. However, the management is adamant that “this expansion bodes well for continued growth and generation of attractive returns for our investors”.
Six-month J$29.8 million net loss
iCreate generated reduced revenue and showed a net loss of $29.8 million for the six-month period. The new management team, comprising interim chairman, Ivan Carter; interim CEO, Arlene Martin; and group CFO, Chadwick Bennett, says strategies are being pursued to rebuild revenue streams.
On the positive side, GetPAID Limited recorded year-to-date revenue and net profit of J$18.8 million and J$3.6 million, respectively, utilising an asset base of J$59.5 million as at June 30, 2023. This subsidiary provides various services in the e-commerce sector, which has made the iCreate management very excited about the plans and growth prospects of this company.
The interim management team replaced founding president and CEO, Tyrone Wilson; COO Toni Cooke; chief revenue officer, Declan Tully; and chief financial officer, Dwight Burchell.
“The group is focused on growth in revenue and cash flows from all member companies, as well as reaping synergies across the Group to benefit our many clients. At the same time we will be streamlining and strengthening internal processes and capabilities to realise our strategic objectives,” the management team said.