Incap Corporation                                                

Financial Statements Release 2020                              24 February 2021 at 8.30 a.m. (EET) 

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

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 in January 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 to EUR 0.4 million (EUR 0 million) and non-recurring costs were EUR 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 approximately EUR 10.9 million.

January–December 2020 highlights

  • Acquisition of AWS Electronics Group with production facilities in the United Kingdom and Slovakia was completed in January 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 to EUR 1.9 million (EUR 0 million) and non-recurring costs were EUR 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.

Otto Pukk, President and CEO of Incap Group:

“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 AWS Electronics Group acquisition, but the second half of the year also showed good organic growth. The profitability improvement was based on good development primarily at the Indian factory but also on synergy effects from the successful integration of AWS. After the pandemic-related closure of the Indian factory, the backlog was quickly cleared, and the activity increased even more than previously estimated due to new demand from existing customers.

The main milestones of our growth strategy in 2020 were the acquisition and successful integration of AWS Electronics Group, an oversubscribed rights issue as well as strong organic growth and the announced new investments in capacity at our factories, foremost in India.

The key integration projects of AWS Electronics Group in the UK, which was acquired in January, has been completed according to plan.

In November, we successfully completed our rights issue of 10.9 million euros. With the rights issue we were able to strengthen our capital structure, balance sheet and financial position and thus create conditions for the implementation of our growth strategy. The oversubscribed offering indicates indeed a strong confidence in our strategy. The EMS sector remains highly fragmented and we want to be an active player in the sector.

In addition to inorganic growth opportunities, we continue to see good demand from existing and new customers especially in India. In August we announced a further expansion of our factory in India. The expansion is proceeding well, and we expect the original factory expansion to be finalised early 2021 and the further expansion to be completed by the end of 2021. By then we will have 16,000 square metres of capacity there. During 2020, we also invested in new machinery in Slovakia and new assembly lines in Estonia.

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 AWS Electronics Group acquisition and recruitment activities in India and Estonia, the number of personnel at Incap has increased from 834 to 1,902. I am pleased to see the Incap family growing and I welcome everyone on board. I also want to thank all our employees for their outstanding resilience and flexibility during this tough year and our customers and other stakeholders for the trust they have placed in Incap.

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 Helsinki, 24 February 2021

Board of Directors

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

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Incap Corporation is a trusted partner and full service provider in Electronics Manufacturing Services. As a global EMS company Incap supports customers ranging from large multinationals and mid-sized companies to small start-ups in their complete manufacturing value chain. Incap offers state-of-the-art technology backed up by an entrepreneurial culture and highly qualified personnel. The company has operations in Finland, Estonia, India, Slovakia, the UK and Hong Kong and employs approximately 1,900 people. Incap’s share has been listed on Nasdaq Helsinki Ltd stock exchange since 1997.