Incap’s Revenue and Operating Profit Increased Significantly

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Key figures in January-December 2018 

• The Group’s revenue amounted to EUR 59.0 million, up 21.5% year-on-year (2017: EUR 48.5 million).
• The Group’s operating profit (EBIT) amounted to EUR 8.6 million (EUR 4.5 million) and its share out of revenue was 14.6% (9.4%). 
• Net profit for the financial period amounted to EUR 5.8 million (EUR 3.1 million). 
• Earnings per share was EUR 1.34 (EUR 0.72) 
• The Board of Directors will propose to the Annual General Meeting that no dividend be paid. Following the share capital reduction carried out in 2016 there are limitations to the distribution of dividends until 31 August 2019. 
• For 2019, the company estimates that the Group’s full-year revenue and operating profit (EBIT) will be approximately at the same level or somewhat higher than in 2018, provided that there are no major changes in currency exchange rates or in component availability. 

Key Figures in July-December 2018 

• The revenue during the second half of the year amounted to EUR 32.0 million, showing an increase of 29.2% (7-12/2017: EUR 24.8 million).
• Operating profit (EBIT) for the second half of the year was EUR 5.6 million (7-12/2017: EUR 2.3 million). 

President and CEO of Incap Group Otto Pukk 

"Our business performed well throughout 2018. The fourth quarter of the year was strong both in terms of revenue and profitability exceeding our expectations. Our revenue increased mainly thanks to growing demand from the established customers, and we were also able to increase the volumes with new customers.

I am especially delighted of the good profitability. The operating profit amounted to EUR 8.6 million, corresponding to 14.6 percent of revenues. In electronics manufacturing services business this is generally considered to be a good level.

When developing our operations we continue to focus on functions, which bring the highest added value to our customers. We maintained a lean organizational structure and continued strict management of costs, and consequently, this together with revenue increase, our profitability clearly improved.

Along with the increased demand from our customers we focus on improving and increasing our manufacturing capacity. In India, the factory expansion with a new production line was indeed necessary to meet the growing demand. Furthermore, the development actions implemented in our factory in Estonia resulted in increased efficiency. In order to secure the customer deliveries we will continue our investments in developing the production capabilities and capacity further.

The electronics manufacturing services business has suffered from problems in component availability during the whole year. Thus, we increased our inventories measuredly and continued to cooperate closely with our suppliers to secure on-time deliveries to our customers.

We are continuing the work to expand our customer base. Alongside the established industrial companies we are also co-operating with several promising technology start-ups.

We face the future with confidence as the use of electronics in various application areas is expanding worldwide. Prospects for contract manufacturing services currently look bright but as an Electronic Manufacturing Service provider we need to be ready to adjust quickly to the possible market changes. However, I trust that our effective business model keeps us competitive also in the future. Our financial position is solid and we are in a good position to grow our business also through mergers and acquisitions should the right opportunity arise."

About Incap Corporation

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 China, and the company currently employs approximately 770 people. Incap's share is listed on the Nasdaq Helsinki Ltd. as from 1997.