Incap Corporation
Financial Statements Release 2020
Incap Group’s Financial Statements Release for January–December 2020 (unaudited): Continued revenue growth and good profitability
This release is a summary of Incap’s Financial Statements Release for January–December 2020. The complete report is attached to this release as a pdf file and also available on the company’s website at www.incapcorp.com.
October–December 2020 highlights
- Revenue for the fourth quarter 2020 amounted to
EUR 31.5 million (10–12/2019:EUR 16.3 million ), showing an increase of 94%. - Excluding revenue from
AWS Electronics Group acquired inJanuary 2020 , revenue increased organically 45%. - Adjusted operating profit (EBIT) was
EUR 5.6 million (EUR 2.7 million ), corresponding to 17.7% of revenue (16.3%). AWS Electronics Group acquisition related purchase price allocation (PPA) amortisation amounted toEUR 0.4 million (EUR 0 million ) and non-recurring costs wereEUR 0 million (EUR 0.5 million ).- Operating profit (EBIT) was
EUR 5.1 million (EUR 2.1 million ), an increase of 139%, corresponding to 16.2% of revenue (13.0%). - Net profit for the period was
EUR 4.2 million (EUR 0.2 million ). - In
November 2020 , Incap’s rights issue was completed successfully with gross proceeds of approximatelyEUR 10.9 million .
January–December 2020 highlights
- Acquisition of
AWS Electronics Group with production facilities in theUnited Kingdom andSlovakia was completed inJanuary 2020 . - The closure of the factory in
India and other effects of the COVID-19 pandemic had a negative impact on the organic revenue growth and the profitability in April–June 2020. - Incap Group’s revenue amounted to
EUR 106.5 million (January–December 2019:EUR 71.0 million ), up 50%. - Excluding revenue from
AWS Electronics Group , revenue increased organically 0.5%. - Adjusted operating profit (EBIT) was
EUR 14.6 million (EUR 10.8 million ), corresponding to 13.7% of revenue (15.2%). AWS Electronics Group acquisition related purchase price allocation (PPA) amortisation amounted toEUR 1.9 million (EUR 0 million ) and non-recurring costs wereEUR 0.1 million (EUR 0.7 million ).- Operating profit (EBIT) grew 25% and amounted to
EUR 12.6 million (EUR 10.1 million ) or 11.8% of revenue (14.2%). - Net profit for the period amounted to
EUR 9.2 million (EUR 6.3 million ), up 47%. - Dividend proposal: Due to the growth strategy of Incap, the Board of Directors will propose to the Annual General Meeting that no dividend will be paid from the 2019 and 2020 profits.
Unless otherwise stated, the comparison figures refer to the corresponding period in 2019. The figures are unaudited.
Key figures
EUR million | 10–12/2020 | 10–12/2019 | Change | 1–12/2020 | 1–12/2019 | Change |
Revenue | 31.5 | 16.3 | 94% | 106.5 | 71.0 | 50% |
Non-recurring items | 0.0 | 0.5 | -96% | 0.1 | 0.7 | -89% |
Operating profit (EBIT) | 5.1 | 2.1 | 139% | 12.6 | 10.1 | 25% |
EBIT, % of revenue | 16.2% | 13.0% | 11.8% | 14.2% | ||
Adjusted operating profit (EBIT)* | 5.6 | 2.7 | 110% | 14.6 | 10.8 | 35% |
Adjusted EBIT*, % of revenue | 17.7% | 16.3% | 13.7% | 15.2% | ||
Net profit for the period | 4.2 | 0.2 | 9.2 | 6.3 | 47% |
*Adjusted operating profit (EBIT) is an alternative performance measure. Adjusted EBIT excludes non-recurring items and purchase price allocation amortisation. Adjusted EBIT provides comparable information between different financial years on operating profit adjusted for acquisition-related expenses.
Outlook for 2021
Incap estimates that the revenue and the adjusted operating profit (EBIT) will be higher than in 2020.
The estimates are given provided that there are no major negative changes in the COVID-19 pandemic situation, currency exchange rates or in component availability and they are based both on Incap’s customers' forecasts and the company's own assessments of the business development.
“For all of us, as companies and individuals, 2020 was challenging year marked by the breakout of the coronavirus pandemic. For Incap, the operating environment caused big uncertainties for a period of time. Our actions during the year focused on keeping our personnel safe and deliveries to customers running smoothly. The pandemic-related lockdowns and consequent factory closures were a challenge that might have held back our plans, but overall, I am happy to conclude that we were able to navigate through the crisis and stay on the path with our growth strategy.
Our revenue in 2020 increased 50 per cent compared to the previous year and our adjusted operating profit grew 35 per cent. The growth was largely driven by the
The main milestones of our growth strategy in 2020 were the acquisition and successful integration of
The key integration projects of
In November, we successfully completed our rights issue of
In addition to inorganic growth opportunities, we continue to see good demand from existing and new customers especially in
As a globally operating electronics manufacturing services company and a growing organisation, sustainable operations are a must in achieving our goals. That is why we initiated a Corporate Responsibility program during 2020. We want to take the needs and expectations of our stakeholders even better into account and aim at maximising the positive impacts and minimising the negative economic, social and environmental impacts of our activities. As a result of the program, we also launched a renewal of Code of Conduct with plans to offer related training for all Incap’s employees during 2021. The Corporate Responsibility program served also as a vessel for the integration of the newly acquired factories and provided a platform for creating common processes. I am sure the program will help us also in the future to foster our unique company culture. Taking responsibility is an essential part of our entrepreneurial culture and it forms the basis for daily operations.
As a result of the
Looking at 2021, we begin the year with a strong order book which will support our growth targets. We also continue to look at M&A cases that would represent a strong cultural fit and offer potential for geographical expansion. After the rights issue and subsequent loan repayment, our financial position is strong, which sets us up for our growth strategy and new investments in both organic and inorganic growth.”
In
INCAP CORPORATION
Board of Directors
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INCAP IN BRIEF
(ATTACHMENT: INCAP GROUP’S FINANCIAL STATEMENTS RELEASE 2020)
Attachment
- INCAP Financial Statements Release 2020
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