Stock Exchange Release 28 November 2014 at 12.30 pm (EET)
INCAP'S NEW RENTAL CONTRACT IN KURESSAARE IMPROVES RESULT FOR 2014 AND LOWERS COSTS IN LONG TERM
Incap has renegotiated the rental contract for the factory premises in Kuressaare. The new contract is having a positive impact on the result of Incap Group for the year 2014, because the remaining provision for the rents in Kuressaare, amounting to approximately EUR 0.5 million, can be released in the result for the last quarter of 2014. The rental contract also lowers the company's cost levels and improves thereby the profitability in long term.
The present rental contract was due to expire in March 2015. The new contract is valid as from December 2014 and extends to October 2019. The continuation of the rental contract was supported by the positive outlook and increasing manufacturing volumes in the Kuressaare factory. The present customers are indicating growing demand and the company has also been able to acquire new customers to be served in Kuressaare.
Even though the new rental contract does have an impact on the result for 2014, Incap keeps its financial guidance unchanged. In the Interim Management Statement on 13 November 2014 the company estimated that the Group's revenue in 2014 will be significantly smaller than in 2013 when it was EUR 36.8 million and that the full-year operating result (EBIT) is positive (2013: EUR -5.9 million).
President and CEO
Ville Vuori, President and CEO, tel. +358 400 369 438
Kirsti Parvi, CFO, tel. +358 50 517 4569
NASDAQ OMX Helsinki Ltd
INCAP IN BRIEF
Incap Corporation is an international contract manufacturer whose comprehensive services cover the entire life-cycle of electromechanical products from design and sourcing to actual manufacture and further to maintenance services. 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. The Group's revenue in 2013 amounted to approximately EUR 36.8 million, and the company currently employs approximately 500 people. Incap's share has been listed on the NASDAQ OMX Helsinki Ltd since 1997. Additional information: www.incap.fi.
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Source: Incap Oyj via Globenewswire