GlobeNewswire

Incap Group’s Business Review for January-September 2019: Good growth in revenue and profitability continued

Share

Incap Corporation                                               
Stock Exchange Release
Business Review Q3 2019                              6 November 2019 at 8.30 a.m. (EET)                                        

Incap Group’s Business Review for January-September 2019: Good growth in revenue and profitability continued

Key figures in January-September 2019

  • The Group’s revenue amounted to EUR 54.8 million, up 29% on the corresponding period of the previous year (January-September 2018: EUR 42.5 million).
  • The Group’s operating profit (EBIT) amounted to EUR 8.0 million, up 45% on the corresponding period (EUR 5.5 million).
  • Net profit for the period amounted to EUR 6.1 million, up 56% on the corresponding period (EUR 3.9 million).
  • Guidance for 2019: The Group’s revenue and operating profit (EBIT) in 2019 will be clearly higher than in 2018. The Group specifies that the estimated revenue in 2019 will be approximately EUR 70-72 million and the operating profit (EBIT) approximately EUR 9.5-10.5 million.

The information in this business review concerns the development of Incap Group in January-September 2019 and in the corresponding period of 2018, unless otherwise stated. The figures are unaudited.

Key figures
(Unaudited)
1-9/
2019
1-9/
2018
Change, % 7-9/
2019
7-9/
2018
Change,
%
4-6/
2019
1-3/
2019
1-12/
2018
Revenue,
EUR million
54.8 42.5 +29% 17.6 15.5 +13% 18.7 18.5 59.0
Operating profit (EBIT),
EUR million
8.0 5.5 +45% 2.2 2.4 -8%

 
2.9 2.8 8.6
EBIT,
% of revenue
14.6% 12.9%   12.7% 15.6%   15.7% 15.3% 14.6%
Profit for the period, EUR million 6.1 3.9 +56% 1.8 1.8 -3% 2.2 2.2 5.8

Key events of the period

Electronics contract manufacturer Incap Group’s business continued its good growth pace. In January-September 2019, both revenue and profitability improved. Revenue improved by 29% compared to the corresponding period a year ago and amounted to EUR 54.8 (42.5) million. Revenue improved thanks to the growing demand from established customers as well as increased volumes from new customers. The company has managed to broaden its customer base especially in light vehicles, IoT and industrial electronics applications.

Revenue for the third quarter of 2019 amounted to EUR 17.6 (15.5) million, which is slightly less than in the earlier quarters of 2019.
                                                                                 
Operating profit (EBIT) in January-September 2019 was EUR 8.0 (5.5) million and profit for the period totalled EUR 6.1 (3.9) million. Operating profit (EBIT) increased by 45% and profit for the period by 56% compared to the comparison period. The share of operating profit out of revenue increased from 12.9% to 14.6%

EBIT for the third quarter of 2019 was impacted by EUR 0.2 (0.0) million non-recurring costs relating to business development. Operating profit (EBIT) was EUR 2.2 (2.4) million. EBIT was also slightly impacted by timing difference in export incentive payments from Indian government. The share of operating profit (EBIT) out of revenue was 12.7% (15.6%).

Strict cost management and growth in revenues resulted favourably in profitability. In addition to this, the expansion of production facility in India and the development of production lines in Estonia, implemented already in 2018, have resulted in efficiency gains as anticipated.

In the third quarter the Group decided on further increases in its production facility in India and in upgrade of its production capability in Estonia.

The company’s financing position is strong and the equity ratio further improved and stood at the end of September 2019 at 57.4% (44.5%).

Outlook for 2019

The company updated its guidance on 13 September 2019. The Group’s revenue and operating profit (EBIT) in 2019 will be clearly higher than in 2018.

The Group specifies that the estimated revenue in 2019 will be approximately EUR 70-72 million and the operating profit (EBIT) approximately EUR 9.5-10.5 million. The Group’s revenue in 2018 amounted to EUR 59.0 million and the operating profit (EBIT) to EUR 8.6 million.

The estimations assume that there are no major changes in currency exchange rates or component availability. Incap’s estimates for future business development are based both on its customers’ forecasts and on the company’s own assessments.

Otto Pukk, President and CEO of Incap Group:

“The third quarter of 2019 showed again a strong sales performance for Incap. In January-September our revenue grew by 29% from the corresponding period a year ago.

The revenue increased mainly thanks to the growing demand from our established customers, and especially in the earlier part of 2019, from the increased volumes for new customers.

Operating profit (EBIT) grew by 45% and was 14.6% out of revenues, increasing from 12.9% year-on-year. Despite the rapid growth in revenue, we continue our strict management of costs and keeping our organization structure lean. Thanks to these actions, as well as the efficiency improvements on our production lines, our profitability has remained at a good level.

After the exceptionally good first half of the year, I see that the net growth will continue but growth percentages are going back to more normal levels moving forward as the size of the business has grown. Considering third quarter is also holiday & vacation season, I´m happy how the quarter turned out.

In order to improve our production capabilities, we decided to increase our production facilities in India and expand our rental contracts in Kuressaare facility in Estonia.

In Tumkur, India, the development actions are made into the expansion of the production facility from 8,640 sqm to approximately 12,500 sqm. This expansion is expected to be completed by spring 2020.

In Estonia, we are developing our production lines by upgrading our SMT (surface mount technology) -production capability. This helps us to provide our customers more value and to help them in their specific needs with even more flexibility than before. These actions are expected to be completed already by November 2019.
                                                                                                                         
The competition in contract manufacturing is harsh. The shortages in component availability still persist, however, the situation seems to be easing up. We are looking optimistic towards the future. Our financial position is strong and we are able to grow our business also by mergers and acquisitions should right opportunities arise.”

Impacts of the adoption of IFRS 16

The Group adopted IFRS 16 on 1 January 2019 using the modified retrospective method where comparative information will not be restated.

The adoption of IFRS 16 has no material impact on group’s EBIT even though the interest component on the lease payments is recognized in financial income and expenses. The impact of IFRS 16 adoption on the level of total equity is not material. 

The amendment increases the volumes of rental contracts and liabilities recorded in the consolidated balance sheet by EUR 2.6 million in January-September of 2019. This is reported in non-current interest-bearing liabilities (EUR 1.9 million) and in current interest-bearing liabilities (EUR 0.7 million). The increase in depreciations due to this change was EUR 0.5 million for January-September period.

Incap will not adapt IFRS 16 to leasing agreements with rental period 12 months or less or when the contracts notice period is less than 12 months without sanctions. Most of Incap's leasing commitments are short term or low value agreements, which are handled as operating lease contracts. Incap has, at the moment, no activities as a lessor. 

Limitations for dividend distribution ended

Due to the share capital reduction of Incap Oyj, carried out in 2016, there have been limitations for distribution of dividends. These limitations have ended as of 31 August 2019, and there are no limitations for distribution of dividends.

INCAP CORPORATION
Board of Directors

For additional information, please contact:
Otto Pukk, President and CEO, tel. +372 508 0798

Distribution:
Nasdaq Helsinki Ltd.
Principal media
The company’s home page www.incapcorp.com

INCAP IN BRIEF
Incap Corporation is an international contract manufacturer. Incap's customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and Hong Kong, and the company currently employs approximately 830 people. Incap's share is listed on the Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.

Attachment

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Heijmans and De Wever: 220 homes in Berkel-Enschot and Tilburg12.11.2019 17:30:00 CETPress release

Heijmans and geriatric care organization De Wever, which is an organisation that provides care to the elderly, have concluded a cooperation agreement for the phased development of approximately 220 owner-occupier and rental homes in Berkel-Enschot and Tilburg. Part of the homes (112 care apartments) is intended for senior citizens with divergent care needs. The project is valued at around € 65 million. Heijmans and De Wever respond to the increasing demand for suitable homes for senior citizens in Berkel-Enschot and Tilburg by means of this cooperation. Part of the apartments is intended for senior citizens who require nursing home care. With this project Heijmans contributes to creating a healthy living environment for these target groups. The project focuses among other things on laying out indoor and outdoor spaces intended for shared use, as a result of which residents can meet each other. A new apartment complex with 52 apartments for hospital (intramural) care is being realized i

Prosafe SE: Mandatory notification of trade12.11.2019 16:09:00 CETPress release

Ryan Stewart, Chief Commercial Officer, has on 12 November 2019 purchased 45,000 shares in Prosafe SE at an average price of NOK 4.2565 per share. Following the transaction, Ryan Stewart owns 45,260 shares in Prosafe SE. Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The Company is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com Stavanger, 12 November 2019 Prosafe SE For further information, please contact: Jesper K. Andresen, CEO Phone: +47 51 65 24 30 / +47 907 65 155 Stig H. Christiansen, Deputy CEO and CFO Phone: +47 51 64 25 17 / +47 478 07 813 This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

SDLP - Seadrill Partners LLC Third Quarter 2019 Cash Distribution12.11.2019 15:37:00 CETPress release

London, United Kingdom, November 12, 2019 - Seadrill Partners LLC (OTCQB:SDLPF) ("Seadrill Partners" or the "Company") announces today that a distribution of $0.01 per unit has been declared with respect to the third quarter ended September 30, 2019, in line with the second quarter distribution. The third quarter cash distribution will be paid on November 27, 2019 to all unitholders of record as of the close of business on November 22, 2019. FORWARD LOOKING STATEMENTS This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. In particular, statements regarding offshore drilling markets, the Company's ability to make cash distributions, the expected performance of the drilling units in the Company's fleet, estimated duration of customer contracts, contract dayrate amoun

DNO ASA: FAPE01 bond buyback12.11.2019 15:25:00 CETPress release

Oslo, 12 November 2019 - DNO ASA, the Norwegian oil and gas operator, today purchased USD 2.6 million in nominal value of FAPE01 bonds (ISIN NO0010811268) originally issued by Faroe Petroleum plc, and renamed DNO North Sea plc. The bonds were purchased at a price of 107.25. Following the bond buyback, USD 23.6 million in nominal value of the FAPE01 bonds remain outstanding with DNO ASA holding the balance of USD 62.2 million. The FAPE01 bonds mature on 28 April 2023. -- For further information, please contact: Media: media@dno.no Investors: investor.relations@dno.no -- DNO ASA is a Norwegian oil and gas operator focused on the Middle East and the North Sea. Founded in 1971 and listed on the Oslo Stock Exchange, the Company holds stakes in onshore and offshore licenses at various stages of exploration, development and production in the Kurdistan region of Iraq, Norway, the United Kingdom, Netherlands, Ireland and Yemen. This information is subject to the disclosure requirements pursuant

PCI Biotech to present at BIO-Europe 201912.11.2019 15:11:00 CETPress release

Oslo, Norway, November 12, 2019 PCI Biotech (OSE:PCIB), a clinical-stage company developing innovative therapeutics that address significant unmet medical needs, today announced that it will present at BIO-Europe 2019 being held November 11-13, 2019 at Hamburg Messe, Germany. On Wednesday, November 13, 2019 at 09:15am (CET), Dr. Per Walday, CEO, will present an overview of PCI Biotech’s technology and the multiple business development and commercial opportunities available based on this proprietary platform. The presentation will be made available on PCI Biotech’s website (www.pcibiotech.com ) under “Other presentations”. About PCI Biotech PCI Biotech is a biopharmaceutical company focusing on development and commercialisation of novel therapies for the treatment of cancer through its innovative photochemical internalisation (PCI) technology platform. PCI is applied to three distinct anticancer paradigms: fimaChem (enhancement of chemotherapeutics for localised treatment of cancer), fi