ICAPE Group Announces Strong Improvement in 1H 2023 Results

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ICAPE Group, a global technology distributor of printed circuit boards (PCB), announced its half-year results for the first half of 2023, ended on June 30, 2023, and approved by the Board of Directors on September 26, 2023.

Yann Duigou, ICAPE Group’s CEO, stated: "ICAPE Group delivered a notable performance in the first half of the year, with a marked improvement in results despite the difficult context that affected the whole sector. Despite the current industrial environment, we maintain our profitability indicators while pursuing our growth trajectory. Achievements in the first half are the result of the gradual activation of synergies arising from our acquisition strategy. With a stronger cash position, ICAPE Group intends to pursue this policy of external growth, which will provide us with substantial additional revenue in the short and medium term. Advanced discussions are in progress with several players in the PCB industry, some of which should be finalized before the end of 2023."

Commercial activity and financial results

As of June 30, 2023, half-year revenue went down by 12.1% compared to the first half of 2022 and reached €94.5 million, restated for the disposal of DIVSYS activities in the United States and of the Russian subsidiary. An unfavorable economic context, which impacted the entire industry, justifies this lower level of activity. According to the latest study published by Prismark1, its evolution remains significantly higher than that of the PCB market, which declined by 20.9%.

The evolution of the product mix, together with enhanced operating efficiency following the acquisitions made, ensured a reduction in the cost of good sold, and enabled the Group to record an increase in its gross margin of +6 basis points over the period, restated for assets being sold, to €24.4 million in the first half of 2023, representing 25.8% of revenue.

Expenses allocated to salary amounted to €13.1 million, up by 7.5% compared to the first half of 2022, reflecting the various acquisitions made over the past two years. At the same time, administrative expenses fell by a net 10.6% to €4.2 million, reflecting the Group's improved operating efficiency.

Taking all these factors into account, EBITDA margin improved by 3.4 basis points over the period, to 7.5%. Operating income recurring and net income are on a similar positive trajectory, reaching €4.8 million (+78%) and €1.9 million (+118%) respectively by the end of June 2023.

As of June 30, 2023, the Group's cash position stood at €25.3 million, consolidated by the unanimous agreement obtained from its banking syndicate to release €13 million in financing, of which €5 million had been drawn down by June 30, 2023. With financial debts of €48.9 million, ICAPE Group had net financial debt of €23.6 million as of June 30.