iCreate successful bond issue raises $24 million

Start-up company iCreate Limited has begun the year with a bang, raising J$24 million in a successful bond issue earlier this month.

The bond issue—which was arranged by Sagicor Investments Limited—has now provided the company with additional capital to grow its business and pay down liabilities, which stands at $37 million as at December 31, 2019. The bond has semi-annual coupon payments and matures in five years.

iCreate is a subsidiary of eMedia Interactive Group with its registered office at 72B Hope Road, Kingston 6. Its principal activity 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.

In its just-released unaudited 2019 financial report, iCreate reported strong revenue growth of $48.3 million, an increase of 51.6 per cent when compared to the corresponding period of 2018. This strong revenue growth was attributable to increased physical capacity at the Kingston location and the opening of its Montego Bay branch during the year.

For the quarter ended December 31, 2019, the company recorded revenue growth of 185 per cent or $4.5 million over the corresponding quarter of 2018. Gross profit for the 12 months ended December 31, 2019,  gross profit increased from $20 million to $33.5 million or 67 per cent over the prior period. Gross profit margin improved from 63 per cent to 69 per cent when compared to the similar period last year.