Powering the Future: Why Thermal Management Defines the Future of Electronics
Standard of Excellence: Engineering Is the New Sales—How Technical Collaboration Wins Business
SMT Perspectives & Prospects: Artificial Intelligence, Part 7—Data Module 2
Incap Group’s Business Review for January-March 2021: A Strong Start for the Year
April 27, 2021 | IncapEstimated reading time: 4 minutes
Incap Corporation has released its business review for January-March 2021.
January–March 2021 highlights
- Revenue for the first quarter 2021 amounted to EUR 37.7 million (1–3/2020: EUR 24.3 million), showing an increase of 55%.
- Operating profit (EBIT) was EUR 5.5 million (EUR 2.2 million), an increase of 155%, corresponding to 14.6% of revenue (8.9%).
- AWS Electronics Group acquisition related purchase price allocation (PPA) amortisation amounted to EUR 0.2 million (EUR 0.5 million) and non-recurring costs were EUR 0.1 million (EUR 0.1 million). Operating profit (EBIT) adjusted with non-recurring items and PPA amortisation was EUR 5.7 million (EUR 2.7 million), corresponding to 15.2% of revenue (11.1%).
- Net profit for the period was EUR 4.6 million (EUR 1.6 million).
Unless otherwise stated, the comparison figures refer to the corresponding period in 2020. AWS Electronics Group´s figures have been included in Incap Group´s
January–March 2021 highlights
- Revenue for the first quarter 2021 amounted to EUR 37.7 million (1–3/2020: EUR 24.3 million), showing an increase of 55%.
- Operating profit (EBIT) was EUR 5.5 million (EUR 2.2 million), an increase of 155%, corresponding to 14.6% of revenue (8.9%).
- AWS Electronics Group acquisition related purchase price allocation (PPA) amortisation amounted to EUR 0.2 million (EUR 0.5 million) and non-recurring costs were EUR 0.1 million (EUR 0.1 million). Operating profit (EBIT) adjusted with non-recurring items and PPA amortisation was EUR 5.7 million (EUR 2.7 million), corresponding to 15.2% of revenue (11.1%).
- Net profit for the period was EUR 4.6 million (EUR 1.6 million).
Unless otherwise stated, the comparison figures refer to the corresponding period in 2020. AWS Electronics Group´s figures have been included in Incap Group´s reporting as of 23 January 2020. The figures are unaudited.
Outlook for 2021
Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2021 will be clearly higher than in 2020. The increase in revenue and operating profit estimate is driven by the strong development at the Indian factories and the ramp-up of the factory expansion, that has proceeded faster than expected. Furthermore, the visibility related to the customers’ forecasts and the company’s own assessments of the business development has improved.
The estimates are given provided that there are no major negative changes in the coronavirus pandemic situation, currency exchange rates or in component availability. The estimates are based both on forecasts by Incap’s customers and the company’s own assessments of the business development.
Otto Pukk, President and CEO of Incap Group:
“We begun the year 2021 with a strong order book and our business had indeed a strong start in the beginning of the year. In the first quarter of 2021, our net sales increased by 55 per cent and our EBIT margin was 14.6 per cent.
The strong revenue growth was mainly driven by the positive development at our Indian factories. As we have announced earlier, we are expanding our factories in India in order to respond to the demand from existing and new customers. The ramp-up of the expansion has proceeded faster than expected and hence we revised our 2021 revenue estimate upwards.
As a globally operating electronics manufacturing services company and a growing organisation, responsible operations are a must in achieving our goals. To ensure that we will continue to be the trusted partner in our industry and to meet the expectations of all our stakeholders also in the future, we established Incap's first corporate responsibility programme during 2020. With the programme, we will further mitigate risk on one hand, but we have also identified ways to become a more responsible employer, supplier, business partner and corporate citizen. I am very pleased that we have now crystallised and formalised our key themes and a reporting framework for the programme. They are outlined in our first ever corporate responsibility report, which was recently published.
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.
The coronavirus pandemic still poses some risks to our operations especially in India, where new restrictions have been implemented and may need to be continued and extended to limit the spread of the virus. Currently, our production units in India continue operations, despite the lock-down in the Karnataka state. The health and safety of our employees, suppliers and customers remains our first priority.
The EMS market demand has continued strong and the investments in component supply capacity are lagging behind the demand affecting the component availability globally. We have been able to manage the situation quite well in the first quarter and there were no delivery delays impacting our customers. Going forward, we continue to carefully monitor and manage the situation. Despite the risks related to the pandemic and the component supply, we have revised our 2021 revenue estimate upwards.”
Financial performance
In January–March 2021, revenue grew 55 per cent year on year and amounted to EUR 37.7 million (EUR 24.3 million). The growth was driven mainly by the positive development at our Indian factories.
First quarter operating profit (EBIT) grew 155% year on year and amounted to EUR 5.5 million (EUR 2.2 million). January–March adjusted operating profit (EBIT) was EUR 5.7 million (EUR 2.7 million). Year-on-year growth was 113%. Adjusted operating profit margin increased from 11.1 % to 15.2%. Net profit for the period increased significantly from the comparison period and totalled EUR 4.6 million (EUR 1.6 million).
The company’s financial position remained strong. At the end of March 2021, cash reserves were EUR 2.7 million (EUR 7.8 million) and the company had an unutilised bank facility and credit line amounting to EUR 6.0 million. At the end of March 2021, the company’s equity ratio was at 53.1% (32.9%). The increase in the equity ratio was mainly due to a loan repayment in December 2020.
Financial reporting in 2021
In 2021, Incap will publish the half-year report for January-June on 28 July and the business review for January-September on 27 October.
Share on:
Testimonial
"Advertising in PCB007 Magazine has been a great way to showcase our bare board testers to the right audience. The I-Connect007 team makes the process smooth and professional. We’re proud to be featured in such a trusted publication."
Klaus Koziol - atgSuggested Items
ESD Alliance Reports Electronic System Design Industry Posts $5.5 Billion in Revenue in Q4 2025
04/15/2026 | SEMIElectronic System Design (ESD) industry revenue increased 10.3% to $5,466.3 million in the fourth quarter of 2025 from the $4,955.2 million registered in the fourth quarter of 2024, the ESD Alliance, a SEMI Technology Community, announced today in its latest Electronic Design Market Data (EDMD) report.
Punching Out: How Many PCB Companies Are There in North America Now?
03/19/2026 | Tom Kastner -- Column: Punching Out!When I am asked how many PCB shops are still in the U.S., my answer is usually, “About 130. How many do you want to buy?” However, I do not really know the number. My job is either to sell PCB shops or help people buy them, not to count them. I probably should keep better track of them, but many are small (70% have revenue below $10 million), or they say they are making boards even if they rent out their facility as an auto repair shop.
EIPC Winter Conference 2026 Review: The Keynote Sessions
02/11/2026 | Pete Starkey, I-Connect007Aix-en-Provence (pronounced “ex-ahn-pro-vonse”), a historic city and commune in the south of France, about 20 miles north of Marseille, was the pleasant venue for EIPC’s Winter Conference in early February. Industry delegates from 11 European countries, as well as from the U.S. and China, gathered at the Renaissance Hotel for a two-day programme, “Driving the Future: Innovation, Energy, and Sustainability in PCB Technology.” An added attraction was a privileged visit to the ITER fusion power project at the Cadarache research and development centre.
SMTA Space Coast: What's Needed to Modernize Defense Solder Standards
12/23/2025 | Nolan Johnson, I-Connect007Long-time lead-free solder investigator, Denny Fritz, hit the SMTA Space Coast Expo in November to drum up support for an initiative to include lead-free solder in milaero-based printed circuit board assemblies. In this interview, Denny provides background on the genesis of the “consider all solders” project and why it matters to continue leading this effort.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
11/28/2025 | Nolan Johnson, I-Connect007Yesterday was the U.S. Thanksgiving holiday. The traditional meal is, of course, roast turkey with “all the trimmings.” Although not everyone observes that menu, most do, and it was reported that 42 million turkeys were consumed on that day. With an average weight of 16 pounds per turkey, we cooked up 672 million pounds! With approximately 342 million people in the U.S, that pencils out to just under two pounds of drumstick and white meat per person. That, my friends, is a whole lot of leftovers.