Jamaican digital company iCreate Limited, headed by Tyrone Wilson. has reversed its misfortunes posting good performances with audited financials for 2023 and a positive unaudited first quarter in 2024. 

It credits the turning of the tide to a relentless pursuit of innovation and strategic growth, combined with a focused merger and acquisition strategy thus solidifying its position as a preeminent digital and creative group of companies.

2023 audited financial highlights

Profit and loss, acquisition costs

iCreate Limited reported an operating profit of J$6.2 million, excluding acquisition-related one-time costs. This is a significant improvement from the operational losses of J$41.6 million in 2022. Additionally, losses before tax, excluding acquisition-related finance costs, improved significantly from J$46.8 million to J$11.7 million in 2023, marking a 74 per cent improvement. This notable progress in profitability and bottom-line growth is a direct result of the strategic merger and acquisitions (M&A) initiatives iCreate launched in 2021.

Revenue growth

Revenue grew by J81.3 million reaching J$160.3 million, a 102 per cent increase compared to J$79.6 million in 2022. The consolidation of Visual Vibe for only seven months, alongside substantial contributions from GetPaid and iCreate Institute, played pivotal roles in the group’s turnaround. 

iCreate explained, “Our ongoing commitment to identifying and capitalizing on growth opportunities and strategic partnerships continues to drive our success.”

Unaudited Q1 2024

In Q1 2024, consolidated revenue climbed by J$7 million (27 per cent year-over-year) to J$32.9 million. Profit before tax rebounded to $0.3 million from a prior year’s loss of J$11.8 million, while operating cash flows increased to J$26.2 million, up from J$17.4 million in the previous year. This period has been critical for iCreate as it integrated Visual Vibe into the group, leveraging synergies between its subsidiaries.

Visual Vibe’s contribution

Visual Vibe’s expanding network of public and private indoor advertising screens and kiosks has demonstrated robust performance, driving quarterly growth. Revenue increased 13 per cent, and iCreate aims to further amplify this growth by expanding its indoor portfolio in the upcoming quarters.

“Onboarding three new clients from diverse industries such as finance, retail, and e-commerce, has significantly broadened our market reach and validated the value of our services. High demand for our offerings enabled us to renew all contracts for the new financial year (January – December 2024),” read its statement. 

Visual Vibe delivered a quarterly operating profit of J$14.5 million, a 63.4 per cent increase compared to J$5.3 million in the corresponding period in 2023. This performance allowed iCreate to distribute dividends to its shareholders, further enhancing investor confidence.

Operational efficiency and team engagement

“We have optimised our operations through strategic staff-related enhancements, including the hiring of consultants, role expansions, and access to self-paced training materials. Our technical operations have been fortified by implementing cameras at remote locations for better monitoring, establishing a screen maintenance schedule, upgrading computer systems, and introducing a new CRM and task monitoring system. Crucially, we invested in our team, offering enhanced benefits and improved salaries, recognising their invaluable contribution during the transition from the original owners to iCreate,” declared the Wilson-led organisation 

Reduced loan liabilities

In Q1 2024, iCreate successfully paid off all material long-term loans, either by conversion into equity or direct payout from its operating cash flow. By settling debts with Sagicor, it has significantly reduced its loan liabilities, thereby strengthening the balance sheet and ensuring long-term financial stability. iCreate’s total debt decreased from J$119.2 million at the end of 2023 to J$51.45 million at the end of Q1 2024, representing a 56.84 per cent reduction and positioning it with a stronger balance sheet.

Governance

iCreate now has all its committees chaired by independent directors, thereby enhancing both the independence and effectiveness of these bodies.

“We extend our gratitude to the Jamaica Stock Exchange and its Regulatory Market Oversight Division for their invaluable guidance in our corporate governance and financial reporting endeavours. We anticipate continued benefit from their expertise as we advance the growth and development of our company,” it said in appreciation of the guiding hand provided by experienced professionals. 

Looking ahead

iCreate concluded: “With the governance enhancements implemented over the past few months following our trading suspension, iCreate Limited is poised for continued growth and innovation in 2024 and beyond. We have started the upgrade of our Visual Vibe locations with higher resolution screens, all being funded by our operating cash flow. Our strategic investments, robust financial management, and unwavering commitment to excellence position us for sustained success. We remain dedicated to delivering exceptional value to our shareholders, clients, and the broader community. We extend our gratitude to our board, team members, shareholders, and wider stakeholders for their unwavering support and patience.”