Incap Corporation                  
Interim Management Statement             12 November 2015 at 8.30 a.m. (EET)                                            


Strong performance continued: Revenue and result increased clearly, financing position improved.

The information in this Interim Management Statement of Incap Group refers to the continued operations of the company without the factory in Vaasa, which was divested in December 2014. The figures of this Statement describe the development during the period of January-September 2015 and the corresponding period in the year 2014, unless otherwise stated. The figures are unaudited.

Key figures in January-September 2015

  • The Group's revenue was EUR 21.2 million, increasing 64.6% year-on-year (1-9/2014: EUR 12.9 million).
  • The operating profit (EBIT) amounted to EUR 2.5 million (1-9/2014: EUR 0.1 million).  
  • Net profit for the period amounted to EUR 1.2 million (1-9/2014: EUR -0.5 million).

(EUR thousand)


1-9/2015 1-9/2014 1-6/2015 1-6/2014 1-12/2014
Revenue 21,214 12,887 13,254 8,155 18,499
Operating profit/loss (EBIT) 2,517 94 1,478 -144 1,061
Profit/loss for the period 1,247 -494 845 -637 151

Key events of the period 1 January – 12 November 2015

The Group's revenue increased steadily during the report period thanks to the launch of new customers' production and the increased volumes for established customer relationships. The revenue in January-September increased by 64.6% on the comparison period in the year 2014 to EUR 21.2 million (1-9/2014: EUR 12.9 million). The growth was favoured remarkably also by the strengthening of the Indian Rupee in relation to Euro.

The company's profitability improved further based on the growing volumes in production, the increased efficiency of operations and the strategic focusing. The positive effect of currency fluctuation on the result was remarkable. The operating profit (EBIT) in January-September was EUR 2.5 million (1-9/2014: EUR 0.1 million. Earnings per share for January-September 2015 was EUR 0.007 (1-9/2014: EUR -0.003). The number of the company's shares was doubled to 218,228,070 shares in the rights issue in June. Incap Group's equity ratio on 30 September 2015 was 28.4% (31 December 2014: 9.9%).

The cash position of the company improved due to the increased profitability, the rights issue and the renewal of financing contracts. The company's interest-bearing debt reduced from EUR 9.3 at the turn of the year to EUR 6.3 million on 30 September 2015. During the report period the company has paid back the capital investment of Finnfund made in 2009. The last instalment in the payment arrangement with the Finnish Tax Administration was paid in September.

Short-term risks and factors of uncertainty concerning operations

General risks related to the company's business operations and sector include the development of customer demand, price competition in contract manufacturing, successful acquisition of new customers, availability and price development of raw material and components, sufficiency of funding, liquidity and exchange rate fluctuations.

As a result of the improved profitability and the rights issue in June 2015, the financing position of the company has improved and the sufficiency of financing or working capital is posing no remarkable risk at the moment.

Outlook for 2015

Incap's estimates for future business development are based both on its customers' forecasts and on the company's own assessments. Due to the general economic uncertainty it is very hard to estimate the development of customer demand.

The company estimates that the Group's revenue for the full year 2015 will be approximately EUR 25-30 million and the full-year operating profit (EBIT) excluding any extraordinary items approximately EUR 2.9-3.5 million. In its previous guidance given on 6 August 2015 the company estimated that the Group's revenue and operating profit (EBIT) in 2015 will be clearly higher than in 2014, when the revenue was EUR 18.5 million and the operating profit (EBIT) EUR 1.1 million.   

Ville Vuori, President and CEO of Incap Group:
"Our business has now shifted to a solid growth mode. The strategic focus on the electronics manufacturing and on the actual core business has been a successful decision. We can be satisfied that our efforts have shown results, especially considering the fact that the competition in the market in general is very challenging. The currency fluctuation has affected favourably on our profitability. In order to secure our long-term profitability we shall – also in the growing business – be loyal to our light operational model and seek continuously new means to lower costs for example in material sourcing."

Board of Directors


For additional information, please contact:
Ville Vuori, President and CEO, tel. +358 400 369 438

NASDAQ OMX Helsinki Ltd
Principal media
The company's home page

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 400 people. Incap's share is listed on the NASDAQ OMX Helsinki Ltd. Additional information:

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Source: Incap Oyj via Globenewswire