Icreate Sees A Significant Turnaround In Q1 Supported By Strong Revenue Growth

• iCreate reported a net profit of $10.11 Mn for its first quarter ending March 31, 2022, which represents a 428.7% increase relative to the prior year. 
• The rebound was supported by a jump in revenues as revenues increased by $37.97Mn or 451.1% to close the quarter at $46.4Mn. This revenue outturn was also 41.3% more than the total revenues for the 2021 financial year ($32.83Mn). This was however tempered by an associated rise in direct costs (1220.9%). 
• The company’s core business, the Institute/Education division benefitted from a shift in strategy as it transitioned from a business to customer model to a business to business model. As a result, the group would have secured long-term corporate clients which will help to drive future revenues. The company now has three major long-term corporate training partnerships. 
• Going forward, management expects that the company will see continued growth for the rest of the financial year, supported by a downward trend in receivables when payments from corporate clients begin to flow in Q2, especially considering the fact that they would have trained a record number of professionals in digital skills. 
• ICreate’s stock price has increased by 434.3% since the start of the calendar year. The stock closed Wednesday’s trading session at $4.15 and currently trades at a P/B of 41.7x.

(Sources: Company’s Financials & NCBCM)