72B HOPE ROAD, KINGSTON 6 I [email protected] I 876-613-8979
iCREATE LIMITEDUNAUDITED FINANCIAL STATEMENTSFOR THE PERIOD ENDING MARCH 31, 2020
CONTENTS
Director’s Report to Shareholders
Unaudited Statement of Financial Position
Unaudited Statement of Comprehensive Loss
Unaudited Statement of Changes in Equity
Unaudited Statement of Cash Flows
General Information
Shareholdings
This document was prepared by
......................................... .........................................Tyrone Wilson Devon Lawrence
President & CEO Director
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For the three months ended March 31, 2020, the company’s gross profit increased from $8 million to $19.3 million or 124% increase over prior period while the gross profit margin improved from 72.5% to 79% when compared to the similar period last year.
The company made an Operating Profit of $5.06 million for the quarter ending March 31, 2020, a 153% increase when compared to the corresponding period in 2019.
We are pleased to report a Net Profit of $1.25m for the quarter ending March 31, 2020. This is our first profitable quarter since being listed on the Jamaica Stock Exchange. This represents a 184% turnaround when compared to the Net Loss of $1.48m made in 2019. This was attributable to the number of strategic initiatives that were set in motion after being listed in 2019. Some of these strategic initiatives included the raising of the bond issue which was closed in February 2020 and the completion of the expansion and construction of iCreate’s training and operational infrastructures which was completed in 2019.
COVID-19 Strategy: Preserving Profits and Pivoting for GrowthGoing forward we will be delivering the majority of our courses in a format using a hybrid of online & face-to-face delivery mechanisms. This change to a more blended strategy will allow us to expand our offerings to a wider audience than was previously achievable with a face-to-face only training delivery strategy. As we review all of our operations and marketing strategies, in response to the Covid-19 crisis, we recognize that several other opportunities will arise. The opportunities will make pivots to our business model, training delivery strategies and revenue streams; each of which will provide both short-term and long-term benefits to the bottom line.
With an aim to maximize profit, in spite of the current COVID-19 crisis, we have undertaken several operational changes which will enable us to reduce costs. Firstly, we have decided to temporarily close our Montego Bay location, effective May 1, 2020. Overall, we have embarked on a cost reduction strategy that will see us reducing expenses by approximately 30% over the coming months as we aim to stay on this path of profitability in this new environment brought on to us by COVID-19.
We thank our shareholders, directors and team members for their continued support as we chart the way forward.
Approved for issue by the Board of Directors on May 12, 2020 and signed on its behalf by:
iCREATE UNAUDITED FINANCIALS
DIRECTORS' REPORT TO THE SHAREHOLDERS
The Board of Directors of iCreate Limited is pleased to present the unaudited financial statements of the company for the three-months ended March 31, 2020.
Revenue Increase of 106%The company recorded revenue of $24.5 million for the three months ended March 31, 2020. This represented an increase of 106% when compared to the comparable period last year and 53% of the total revenue recorded for the 2019 financial year. Our growth in revenue is attributable to a number of initiatives that the company took to ensure we deliver on our commitment to our shareholders. They are as follows:
• Diversification of our customer segments which now include: Business-to-Consumer(B2C) Training, Business-to-Business (B2B) Training and Business-to-Business (B2B)Training Content Design and Production.
• Revenue growth in the Business-to-Consumer (B2C) Training customer segment, as aresult of the addition of two new courses for our Kingston location which were widelyaccepted in Event & Entertainment Production and Interior Design.
• Revenue growth in the Business-to-Consumer (B2C) Training customer segment, as aresult of growth in our student population. Specifically, revenue from our CreativeCourses increased by 166% while revenue from our Digital Courses increased by 21%.
• Revenue growth in the Business-to-Business (B2B) Training customer segment, as aresult of the earnings from our partnership with HEART (The Human Employment andResource Training Trust/National Training Agency). Specifically, we have startedtraining individuals from HEART in the areas of digital photography and digital videoproduction, in both Kingston and Montego Bay.
• Revenue growth through the addition of a new customer segment: Business-to-Business (B2B) Training Content Design and Production. We began serving thiscustomer segment in order to tap into the growing demand of e-Learning ContentDesign & Production. Serving this new customer segment will allow us to furtherleverage our investment in production facilities and equipment to bring new revenueopportunities for the company. In 2019 we invested heavily in facilities and equipmentwhich now allows us to partner with various educational institutions to provide trainingcontent to support their e-learning initiatives. E-Learning represents the future ofeducation for schools, colleges, universities and corporate training departments whichare all embracing the role of digital training delivery platforms.
STATEMENT OF FINANCIAL POSITION5 6iCREATE UNAUDITED FINANCIALS
iCreate Welcome Day for Cohort 1 of our Creative Courses in January 2020 in Kingston, Jamaica.
Approved for issue by the Board of Directors on May 12, 2020 and signed on its behalf by:
......................................... .........................................Tyrone Wilson Devon LawrencePresident & CEO Director
STATEMENT OF
COMPREHENSIVE PROFIT/(LOSS)
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Creatives in Video Production class as part of our partnership with Heart Trust-NTAin Kingston, Jamaica.
STATEMENT OF
CHANGES IN EQUITY
STATEMENT OF
CASH FLOW
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The preparation of the financial statements
in conformity with IFRS and the Act
requires management to make estimates
and assumptions that affect the application
of policies and reported amounts of assets
and liabilities at the date of the financial
statements and the reported amounts of
revenues and expenses for the period then
ended. Actual results could differ from
these estimates.
ACCOUNTING POLICIES
There have been no changes in accounting
policies since the most recent audited
financial statements as at December 31, 2019.
iCreate Limited is a limited liability
Company incorporated and domiciled in
Jamaica. The registered office of the
Company is 72B Hope Road, Kingston 6.
iCreate Limited is a subsidiary of eMedia
Interactive Group Limited.
The principal activity of the Company is to
develop and deliver degree and certificate
courses to students in the creative field,
such as, advertising, film, animation,
graphic design, mobile games, fashion
design and more.
BASIS OF PREPARATION
The Company’s financial statements have
been prepared in accordance and
comply with International Financial
Reporting Standards (IFRS) and
the relevant requirements of the
Jamaican Companies Act.
The financial statements have been
prepared under the historical cost basis
and are expressed in Jamaican dollars,
unless otherwise indicated.
GENERAL INFORMATION
3D render of the new iCreate
learning environment.
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SHAREHOLDINGS
Disclosure of Shareholdings as at March 31, 2020
TOP TEN
SHAREHOLDERS
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