ICR Holdings Limited, parent company of Island Car Rentals Limited, has called on VM Wealth Management Limited (VMWM) to assist the company’s expansion initiative into Guyana, The Bahamas and the Dominican Republic over the next three years.

ICR Holdings had telegraphed to the market nearly two years ago that it intended to expand Island Car rentals to the Caribbean after acquiring the then 50-year-old business. With the completion of an EY (formerly Ernst and Young Global Limited) feasibility study in January, it intends to execute on that expansion in its 2026 financial year which began on May 1.

According to a recent Caricris report, Island Car Rentals’ Guyanese expansion route is set to entail more long-term leases and corporate vehicle rentals in the oil and gas industry while the focus will be on tourism sector in The Bahamas and the Dominican Republic.

“As we look to expand our brand footprint both locally and overseas, we are excited about deepening our partnership by leveraging their expertise and innovative thinking to help us achieve our medium- to long-term goals, with the primary objective being to solidify ICR as a regional powerhouse in the ground transportation industry,” said Ryan Parkes, CEO of ICR Holdings Limited, in the press release.

Parkes is a career banker who spearheaded the ICR Holdings acquisition of Island Car Rentals and Jamaica Rental Company Limited which is a real estate holding company with more than US$14 million in real estate. Island Car Rentals itself has bounced back from the COVID-19 pandemic as it saw a 46 per cent rise in revenue for its April 2023 financial year to $2.69 billion with a net profit of $414.59 million.

Its April 2024 management numbers revealed that Island Car Rentals had $2.76 billion in revenue, $1.19 billion in EBITDA (earnings before interest, tax, depreciation and amortisation) and $400.33 million in net profit. The business had $4.25 billion in assets with $159.47 million in cash and a tangible net worth of $1.29 billion. Island Car Rentals had $2.10 billion in debt and received a $215.9 million loan from VM Investments Limited (VMIL) to partially fund the purchase of new vehicles.

For the six months period up to October 2024, Island Car Rentals revenue marginally improved to $1.41 billion, but saw a nine per cent rise in operating profit to $600.39 million. That improvement was attributed to the decline in motor vehicle expenses and insurance costs which stemmed from the transfer of its insurance policy to a new company. That move is expected to give the company $60 million in annual savings. Net profit for the six months period grew 20 per cent to $186.68 million as the company benefited from the sale of older vehicles and reduced operating expenses.

As part of its local growth moves, Island Car Rentals opened an office at the Ian Flemming International Airport in April which made it the only car rental company with an office at all three international airports. The company also added truck rental services to corporate clients and received three new trucks within recent months. Island Car Rentals also purchased new vehicles from Kia Motors Jamaica, purchased tyres in bulk to benefit from lower prices and increased its inventory of key parts to reduce vehicle downtime. Island Car Rentals has over 1,400 vehicles.

“We have noted ICR’s exceptional revenue and profit performance, continued robust growth trajectory, and unwavering commitment to operational excellence to date. This initiative reflects our shared commitment to innovation, expansion, and long-term value creation, and we are excited to see the benefits of our partnership continue to unfold,” stated Rezworth Burchenson, CEO of VM Wealth and VMIL.

VM Wealth lead the refinancing of ICR Holdings US$10 million maturing bonds during 2024 and was the lead broker for ICR Holdings August 2023 acquisitions. VMIL invested US$2.5 million in the cumulative redeemable USD indexed preference shares issued by ICR Holdings for the 2023 deal. VMIL owns part of the Class A preference shares which have a convertibility option.

Sygnus Credit Investments Limited owns 20,000 Class B preference shares in ICR Holdings while Sygnus Capital Group Limited, parent company of Sygnus Capital Limited, owns eight million ordinary shares or five per cent of ICR Holdings. Vertex SME Holdings Limited owns 25 per cent of the ICR Holdings ordinary shares. Island Car Rentals has a seven-member board and 12-member senior management team.

Caricris reaffirmed the CariBBB– and jmBBB+ ratings for Island Car Rentals and expects it to meet $127.50 million of debt due within the next year. Caricris anticipates Island Car Rentals to generate $3.1 billion for the April 2026 financial year and generate $500.4 million in net profit.

“CariCRIS has also assigned a stable outlook on the ratings. The stable outlook is based on the high likelihood that ICR will continue to maintain a healthy financial performance over the next 12-15 months. This is supported by the Company’s continued drive to execute its new FY2024 to FY20281 strategic plan which focuses on bolstering revenue growth, generating greater cost efficiencies, as well as executing rigorous marketing and digitisation initiatives over the period. Additionally, the company is also expected to continue to meet its debt payments as they come due,” the report stated.

Ryan Parkes (centre), CEO of ICR Holdings Limited, watches as Dwight Jackson, assistant vice-president for capital markets at VM Investments Limited, affixes his signature to the document signalling the strategic partnership agreement with VM Wealth Management Limited. Looking on is Rezworth Burchenson (left), CEO of VM Wealth Management Limited. Sharing in the occasion in the back row are (from left) Tiffany Davidson, manager – group marketing (partnerships and sales support) at VM Group; Romario Sterling, manager for Capital Markets at VM Wealth; Kerry-Ann Harrison, marketing manager at ICR Holdings Limited; and Adam Harris, vice-president for strategic investments at the VM Group.