2016-02-18 07:31:17 CET
2016-02-18 07:31:17 CET
REGULATED INFORMATION
Incap - Financial Statement Release
INCAP GROUP FINANCIAL STATEMENT RELEASE FOR 2015: STRONG GROWTH IN REVENUE AND RESULT
Incap Corporation
Financial Statement Release 18 February 2016 at 8.30 a.m. (EET)
INCAP GROUP FINANCIAL STATEMENT RELEASE FOR 2015: STRONG GROWTH IN REVENUE AND
RESULT
Incap Group's revenue in 2015 increased by 65% and the operating profit was more
than tripled on previous year. Financing position improved thanks to revenue
growth, good profitability and rights issue.
Key figures in January-December 2015
* The Group's revenue in 2015 amounted to EUR 30.6 million, up 65% year-on-
year (2014: EUR 18.5 million).
* The Group's full-year operating profit (EBIT) amounted to EUR 3.7 million,
increasing by 248% year-on-year (EUR 1.1 million).
* Net profit for the financial period amounted to EUR 2.0 million, which is
ten times higher than the year before (EUR 0.2 million).
* The Board of Directors will propose to the Annual General Meeting that no
dividend be paid.
* The company estimates that the Group's revenue in 2016 will be somewhat
higher than in 2015 and that the operating profit (EBIT) will be
approximately on the same level than in 2015.
Key figures in July-December 2015
* The revenue during the second half of the year amounted to EUR 17.3 million,
showing an increase of 67% compared with the corresponding period last year
(7-12/2014: EUR 10.3 million) and up 31% compared with the first half of the
year (1-6/2015: EUR 13.3 million).
* Operating profit (EBIT) for the second half of the year was EUR 2.2 million,
i.e. almost double when compared with the corresponding period last year (7-
12/2014: EUR 1.2 million). As expected, the operating profit was clearly
better than on the first half of the year when it stood at EUR 1.5 million.
The accounting principles for the financial statements
This financial statement release has been prepared in accordance with
international financial reporting standards (IFRS) - IAS 34 Interim Financial
Reporting standard. When preparing the release, the same principles have been
used as in the 2014 financial statement. Unless otherwise stated, the comparison
figures refer to the same period in the previous year. The information in this
financial statement report is unaudited.
The figures in the financial statement release describe the company's continuing
operations, i.e. the business operations of the factories in Estonia and India
as well as the parent company. The comparison figures for 2014 describe the
continuing operations of the Group without the business operations of the
factory in Vaasa, which was sold on 31 December 2014.
Ville Vuori, President and CEO of Incap Group:
"Year 2015 has been a defining year for Incap. We started the year with a new
market promise, which enabled a whole new positioning in the market as an EMS
company with strong emphasis on customer service. The implementation of the new
orientation required everyone in the organization to perform up to their full
potential. Today, I am extremely proud to say that we succeeded beyond all
expectations.
Our revenue grew by 65% and the profitability in terms of EBIT improved even
more, by 248% from previous year's EUR 1.1 million to 3.7 million. Our
professional, committed and agile team is to be praised for this. They have been
driving our customers' confidence to grant us new projects and strengthened the
gravity to attract new customers from a highly competitive marketplace.
We had an ambitious list of operational development projects for 2015, which
together with the relatively strong organic growth were occasionally
challenging. All of the projects were completed during 2015. Both factories now
operate within the same ERP system, which is facilitating the future search of
synergies between the units. Productivity of the factories continued improving
and the corporate functions have been developed as lean as it gets.
All operational Key Performance Indicators either improved or stayed on the same
level as in 2014. Improved profitability together with the rights issue in June
improved the financial indicators significantly. At year end our equity ratio
was 31% compared to 10% the year before, and the net gearing was 98% compared to
524% at the end of previous year. Proportional share of Net Working Capital
required for running the business developed well and decreased by 17%.
Extremely price-sensitive marketplace and continuing dim outlook in the global
economy possess a risk for the erosion of our operating profit. We need to
remember the lessons learned from the past years and continue focusing on costs
in all levels. We will continue our commitment and challenge ourselves to be
more lean, effective and agile for the benefit of our customers. I trust that by
developing the company further with the same orientation as last year the future
outlook will be positive. According to our estimates the revenue level of 2015
can be exceeded in 2016."
Business environment in 2015
The business environment of Incap Group continued challenging, because the
competition in the global market for manufacturing services was fierce.
Financial prospects in Europe and Asia were still unstable. General cost level
remained stable in countries where Incap has operations. Prices of components
and raw materials showed a moderate trend.
Incap Group's revenue and earnings in July-December 2015
Revenue for the second half of the year amounted to EUR 17.3 million, showing an
increase of 67% year-on-year (7-12/2014: EUR 10.3 million) and being 31% higher
than in the first half of the year (1-6/2015: EUR 13.3 million). The revenue
increased from previous year both in Estonia and in India. In Estonia the major
growth of revenue came from new customers, to whom the production was launched
during the latter half of the year. The volumes in the Indian factory were
increased especially due to the growing production for established customers.
The operating profit (EBIT) for the second half of the year amounted to EUR 2.2
million, i.e. almost double the figure in the corresponding period in 2014 (7-
12/2014: EUR 1.2 million) and remarkably higher than for the first half of the
year (1-6/2015: EUR 1.5 million). The net result for the second half of the year
was EUR 1.2 million, compared with EUR 0.8 million on the corresponding period
last year and EUR 0.8 million in the first half of the year 2015.
Incap Group's revenue and earnings in 2015
Revenue for the financial period amounted to EUR 30.6 million, by approx. 65%
more than in 2014 (1-12/2014: EUR 18.5 million). The increase in revenue was a
result of growing demand of present customers and the production for new
customers. Out of the growth, approximately EUR 3.1 million or 17 percentage
points was caused by the strengthening of Indian Rupee in relation to Euro.
The profitability of Incap Group showed a remarkable improvement thanks to the
growing production volumes, increased efficiency and strategic focusing. The
full-year operating profit (EBIT) amounted to EUR 3.7 million (EUR 1.1 million),
being 12.1% out of revenue which in the company's business, Electronics
Manufacturing Services, is in general terms considered to be a good level. The
operating profit in the comparison period 2014 included non-recurring items
connected with the dissolution of provision for rents amounting to approx. EUR
0.5 million. Approximately EUR 0.5 million of the net result for the period was
a result of the favourable exchange rate between Euro and Indian rupee.
The company continued with the strict cost management in 2015, based on which
the overhead costs remained low enabling profitable operations and increased
competitive edge.
Personnel expenses in the reporting period amounted to EUR 3.2 million (EUR 2.8
million). The growth was caused by the increased manufacturing volumes but was
more moderate than the growth rate of revenue. Other business costs increased
year-on-year mainly due to the renewal of ERP system, the oursourcing of finance
and administration, the development of reporting and the increase of rental
costs. In line with the increasing production volumes the value of inventories
increased from EUR 3.4 million to EUR 5.2 at the end of the reporting period.
Net financial expenses amounted to EUR 0.5 million (EUR 0.7 million).
Depreciation amounted to a total of EUR 0.3 million (EUR 0.3 million).
Net profit for the period was EUR 2.0 million (EUR 0.2 million). Earnings per
share were EUR 0.01 (EUR 0.00).
COMPARISON 1-12/2015 1-12/2014
BY REPORT PERIOD (1,000 euros)
Revenue 30,566 18,499
Operating profit/loss (EBIT) 3,692 1,061
Profit/loss for the period 2,012 151
Earnings per share, EUR 0.01 0.00
COMPARISON
BY 6-MONTH PERIOD 1-6/2015 7-12/2015 1-6/2014 7-12/2014
(1,000 euros)
Revenue 13,254 17,312 8,155 10,345
Operating profit/loss (EBIT) 1,478 2,213 -144 1,205
Profit/loss for the period 845 1,167 -637 788
Earnings per share, EUR 0.01 0.01 -0,01 0,01
Investments
Investments in 2015 totalled EUR 0.9 million (EUR 0.2 million) for the
development of production capacity in India and Estonia.
Quality assurance and environmental issues
Incap Group's both factories have environmental management and quality assurance
systems certified by Det Norske Veritas. The systems are used as tools for
continuous improvement. Incap's environmental management system complies with
ISO 14001:2004, and its quality assurance system complies with ISO 9001:2008. In
addition, the Kuressaare factory has ISO 13485:2003 quality certification for
the manufacture of medical devices.
Inission AB's public tender offer on Incap shares
After the increase of its holding in December 2014 Inission AB made a mandatory
public tender offer for all other Incap shares and securities entitling to
shares in line with the Securities Market Act, Chapter 11, Section 19. Based on
the trades in the mandatory public tender offer and direct buy of shares
Inission AB's holding increased to a total of 44,573,010 shares, i.e. to 40.85%
of all shares and votes. Later on, after the subscriptions made in Incap
Corporation's rights issue in May 2015, the holding of Inission AB increased to
90,490,452 shares.
Rights issue
The Board of Directors of Incap Corporation resolved on 25 may 2015, based on
the authorization granted by the Extraordinary General Meeting on 7 May 2015 on
the share issue against payment in which the company offered to its shareholders
109,114,035 new shares for subscription. The subscription period was from 1 to
22 June 2015, when 106,585,585 new shares were subscribed by the preferred
subscription rights and 52,850,453 new shares by the secondary subscription
rights, i.e. altogether approximately 146% of all the new shares offered. The
Board of Directors accepted in accordance with the conditions of the rights
issue a total of 106,585,585 new shares subscribed by the preferred subscription
rights and 2,528,450 new shares by the secondary subscription rights i.e.
altogether 100% of all the new shares offered.
Altogether 1,033 subscribers participated in the rights issue by the preferred
subscription rights and altogether 471 subscribers by the secondary subscription
rights. The three largest shareholders of the company - Inission AB, Oy Etra
Invest Ab and Ilmarinen Mutual Pension Insurance Company - subscribed in
accordance with their conditional subscription undertakings new shares at a
minimum the quantity that corresponded to their pro rata proportions of the
company's outstanding shares.
Incap collected a total of EUR 2,181,280.70 new equity through the rights issue
i.e. the full amount targeted under the rights issue. The total subscription
price of EUR 2,181,280.70 as well as the related costs of approximately EUR 0.2
million have been recorded in the invested unrestricted equity reserve of the
company. The rights issue did not amend the registered share capital of the
company.
As a result of the rights issue, the amount of the company's shares doubled to
218,228,070 shares. The new shares were admitted to trading on Nasdaq Helsinki
on 1 July 2015.
Balance sheet, financing and cash flow
The balance sheet total on 31 December 2015 stood at EUR 18.1 million (EUR 14.4
million). The Group's equity at the close of the financial period was EUR 5.6
million (EUR 1.4 million). The parent company's equity totalled EUR 9.4 million,
representing 46% of the share capital (EUR 8.0 million, 39%). The Group's equity
ratio was 31.2 % (9.9%).
Liabilities decreased to EUR 12.5 million compared with previous year (EUR 13.0
million), of which EUR 7.6 million (EUR 9.3 million) were interest-bearing
liabilities. Interest-bearing net liabilities decreased from the comparison
period and were EUR 5.6 million (EUR 5.7 million), and the gearing ratio was
98% (524%).
The Group's non-current interest-bearing liabilities amounted to EUR 4.3 million
(EUR 0.3 million) while the current interest-bearing liabilities were EUR 3.3
million (EUR 9.1 million). In the corresponding period the majority of
liabilities were included in current liabilities because of the breach of
covenants. Approximately EUR 2.7 million of liabilities concern the Indian
subsidiary (EUR 3.4 million). Other current liabilities include EUR 4.1 million
of bank loans and limits granted by the company's Finnish bank and EUR 0.7
million of factoring financing used in Estonia.
The company agreed in February 2015 with the Finnish bank upon new conditions
and instalments of loans. The covenants of the loans are EBITDA and equity
ratio, and their status is reviewed every six months until 30 June 2018. In the
review on 31 December 2015 the target level of EBITDA was EUR 1.25 million and
the equity ratio 7.5%. The company met these covenants and the actual EBITDA on
the review date was EUR 4.0 million and the equity ratio 31.2%.
In autumn 2015 Incap paid back to Finnfund the capital investment of EUR 1.9
million, which Finnfund had made in Incap's subsidiary in India in 2009. At the
same time, Finnfund's holding of 22.5% in Incap Contract Manufacturing Services
Pvt. Ltd. became void. The payback was realised by lowering the share capital of
the Indian subsidiary and financed by means of the accumulated profits of the
Indian subsidiary and the local financing.
The company repaid the rest of the so-called OP Bank loan (previous convertible
loan 2007), EUR 0.2 million, in June 2015. The company further paid the last
instalment of the payment arrangement with the Finnish Tax Administration in
September 2015.
As to the loans granted by the Indian bank the company has committed to follow
ordinary covenants and the bank's general loan conditions.
INSTALMENTS AND INTERESTS OF LOANS
(1,000 euros)
31 Dec 2015 Total 31 Dec 2014 Total
Less than 6 months 4,197 3,740
6-12 months 383 3,130
1-5 years 3,402 3,111
More than 5years 0 0
In total 7,981 9,981
The Group's cash position improved thanks to the improved profitability, rights
issue and the renewal of financing agreements. The Group's quick ratio was 1.1
(0.6), and the current ratio was 1.8 (0.9).
Cash flow from operations was EUR 1.0 million (EUR -0.7 million). On 31 December
2015, the Group's cash and cash equivalents totalled EUR 2.1 million (EUR 1.9
million). The change in cash and cash equivalents showed an increase of EUR 0.2
million (increase of EUR 0.2 million).
Aspects related to the Group's financing and liquidity are also described in the
section "Short-term risks and factors of uncertainty concerning operations".
Personnel
At the end of 2015, Incap Group had a payroll of 468 employees (423). 86.6%
(89%) of the personnel worked in India, 13.0% (9%) in Estonia and 0.4% (2%) in
Finland. At the end of the year, 96 of Incap's employees were women (68) and
372 were men (355). Permanently employed staff totalled 192 (167) and the number
of fixed-term employment contracts was 275 (204). The company had 1 part-time
employment contract at the end of the period (52). The average age of the
personnel was 29 years (36).
Management and organisation
The duties of CEO of Incap were carried out by Ville Vuori (B.Sc. Eng., eMBA,
born 1973). At the end of the report period the Group's Management Team included
besides the CEO Ville Vuori also the local Managing Directors: Murthy Munipalli
in India and Otto Pukk in Estonia.
The renewal of operational model of the Group was continued and the tasks in
finance and administration were outsourced to partners. At the same time, key
functions in the factories were strengthened and a new Managing Director was
appointed to the operations in Estonia. The Group's factories in Estonia and in
India operate as independent cost centres, which are responsible besides for the
actual delivery-order process also for the quotations and pricing.
Annual General Meeting 2015
The Annual General Meeting of Incap Corporation was held in Helsinki on 31 March
2015. A total of 15 shareholders participated in the meeting, representing
approximately 69.4% of all shares and votes. The Annual General Meeting adopted
the financial statements for the financial period ended 31 December 2014 and
decided, in accordance with the proposal of the Board of Directors, that no
dividend be distributed for the financial period and that the loss for the
financial period (EUR 2,677,306.56) be recognised in equity.
Extraordinary General Meeting
Incap Corporation's Extraordinary General Meeting was held on 7 May 2015. A
total of 14 shareholders participated in the meeting, representing a total of
60.0% of all shares and votes. The Extraordinary General Meeting authorised the
Board of Directors to decide on a rights issue in the way that the number of new
shares to be given in the rights issue can be a maximum of 109,114,035 new
shares of the company. The Board of Directors used the authorisation in June
2015, when the company carried out a successful rights issue.
Authorisation of the Board of Directors
The Annual General Meeting held on 31 March 2015 authorised the Board of
Directors to decide to issue a maximum of 10,911,403 new shares either against
payment or without payment. The new shares may be issued to the company's
shareholders in proportion to their current shareholdings in the company or
deviating from the shareholders' pre-emptive right through one or more directed
share issue, if the company has a weighty financial reason to do so, such as
developing the company's equity structure, implementing mergers and acquisitions
or other restructuring measures aimed at developing the company's business,
financing of investments and operations or using the shares as a part of the
company's remuneration and compensation system, to the terms and scope decided
by the Board of Directors.
The Board has not exercised the authorisation, which is valid until 31 March
2016.
Board of Directors and Auditor
Lassi Noponen acted as the Chairman of the Board of Directors until 4 March
2015, when the Board elected Olle Hulteberg to the Chairman of the Board.
The Annual General Meeting held on 31 March 2015 re-elected Fredrik Berghel,
Olle Hulteberg and Susanna Miekk-oja and elected Rainer Toiminen and Carl-Gustaf
von Troil as new members to the Board of Directors. From among its members, the
Board elected Olle Hulteberg to the Chairman of the Board.
The Board convened 26 times in 2015 and the average attendance rate of Board
members was 83.8%.
The firm of independent accountants Ernst & Young Oy continued to act as the
company's auditor, with Jari Karppinen, Authorised Public Accountant, as the
principal auditor.
Report on Corporate Governance
Incap Corporation is complying with the Corporate Governance Code of Securities
Market Association, which is valid as from 1 January 2016. The company will
release a report on the company's corporate governance in compliance with the
Securities Market Act as a separate document in connection with the publication
of the Report of the Board of Directors and the Annual Report in week 11/2016.
Shares and shareholders
Incap Corporation has one series of shares, and the number of shares at the end
of the period was 218,228,070 (31 December 2014: 109,114,035).
During the financial period, the share price varied between EUR 0.03 and 0.20
(EUR 0.04 and 0.11). The closing price for the period was EUR 0.16 (EUR 0.06).
The trading volume during the financial period was 123,997,394 shares, or 56.8%
of outstanding shares (40,584,525 shares, or 37.2% of outstanding shares). The
market capitalisation on 31 December 2015 was EUR 34.3 million (EUR 6.5
million). At the end of financial period, the company had 2,806 shareholders
(1,634). Nominee-registered or foreign owners held 41.85% (26.3%) of all shares.
The company does not hold any of its own shares.
LARGEST SHAREHOLDERS Shares, Holding,
on 31 December 2015 pcs %
Inission AB (nominee-registered) 90,490,452 41.47
Oy Etra Invest Ab 29,000,000 13.29
Ilmarinen Mutual Pension Insurance Company 16,615,384 7.61
Laurila Kalevi Henrik 4,470,858 2.05
JMC Finance / Penan raudoitus Oy 3,838,072 1.76
Onvest Oy 3,302,346 1.51
Sjöblom Katri Pauliina 3,122,230 1.43
Kontino Invest Oy 2,761,018 1.27
Kantola Mikko 2,266,298 1.04
Aaltonen Pekka Juhani 2,053,691 0.94
10 largest in total 157,920,349 72.37
At the end of the financial period 2015, the members of Incap Corporation's
Board of Directors and the President and CEO and their interest parties owned a
total of 93,016,656 shares or approximately 42.6% of the company's shares
outstanding.
Announcements in accordance with Section 10 of Chapter 9 of the Securities
Market Act on a change in holdings
Based on the trades in the mandatory public tender offer Inission AB's holding
increased to 40.85% of all shares and votes or to 44,573,010 shares. The
previous holding of Inission AB was 37.31% or 40,707,564 shares. At the date of
the financial statement release Inission AB holds 90,490,452 shares.
The holding of Oy Etra Invest Ab decreased on 13 November 2015 so that the new
holding is 32,400,000 shares and 14.85% of all shares and votes. The previous
holding of Oy Etra Invest Ab was 33,000,000 shares and 15.12% of all shares and
votes.
Risk management
The Risk Management Policy approved by the Incap Board classifies risks as risks
connected to the operating environment, operational risks and damage and funding
risks. The company's risk management is mainly focused on risks that threaten
the company's business objectives and continuity of operations. In order to
improve its business opportunities, the company is willing to take on managed
risks within the scope of the Group's risk management capabilities. The company
regularly reviews its insurance policies as part of its risk management system.
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 executed in June
2015 the company's financing position has improved and the sufficiency of
financing and working capital are at the moment posing no remarkable risk.
Based on the cash flow estimate prepared in connection with the financial
statement, the company estimates that the company's working capital will cover
the requirement for the next 12 months.
The company agreed in February 2015 with the bank on new conditions and
instalment of the loans. The loan covenants are EBITDA and equity ratio, which
are reviewed every six months until 30 June 2018. The new instalment schedule
was conditional to the arrangement of a share issue to strengthen the equity.
As a result of the rights issue arranged in June the parent company's equity was
improved by EUR 1.9 million. The company met the covenants both in June and in
December 2015. During 2015 the company has paid back the loans at a minimum to
the quantity agreed in the instalment plan.
During 2015 the Group functions have been arranged to align with the new
organisation structure and in the definition of the volumes of internal
transactions the actual value added and the so-called "arm's length" principle
are considered. After the cumulative losses in India were covered during the
latter half of 2015, it is possible to repatriate profits also through
dividends.
The parent company's equity at the end of the financial period 2015 totalled EUR
9.4 million, i.e. 46% of the share capital.
The value of the shares in subsidiaries in the parent group has a significant
impact on the parent company's equity and therefore on, for example, equity
ratio. In connection with the financial statements for 2014 the value of the
shares in the Estonian subsidiary was decreased by EUR 1.0 million. Based on
the value calculations in connection with the financial statements for 2015
there is no need for further decrease of the value of the shares in
subsidiaries. However, there is a risk connected with the valuation of the
shares of the Estonian subsidiary because of the previous unprofitable
operations of the subsidiary. The business of the subsidiary in India has shown
a favourable development and there is no risk connected with its valuation.
Demand for Incap's services and the company's financial position are affected by
global economic trends and the fluctuation among Incap's customer industries. In
2016, the business environment is estimated to continue challenging, but the
general financial development is estimated to have no remarkable negative effect
on the demand or the solvency of the company's customers. The customer
relationship management is of utmost importance in a challenging market
situation and the management is paying special attention to this.
The company's sales are spread over several customer sectors balancing out the
impact of the economic fluctuation in different industrial sectors. In 2015,
there were two customers in the Group with a revenue exceeding 10% of the total
revenue of the Group. The combined revenue of these two customers was 65% of the
Group's revenue.
The company's operating segment, electronics manufacturing services, is highly
competitive and there are major pressures on cost level management. The company
has succeeded in increasing the efficiency of its operations and in lowering the
costs remarkably during 2013-2015. Furthermore, the company's production is
located in countries with competitive levels of wage and general costs.
The most significant exchange rate risk of the company is related to the Indian
subsidiary. A remarkable part of the Group's operations is located in India. The
fluctuation in the exchange rates between Indian Rupee and Euro may have a
remarkable effect on revenue and result.
A tax audit is currently taking place in the Indian subsidiary. The audit is not
complete yet at the reporting date and its end result cannot be estimated yet.
Events after the end of the period
There are no remarkable events after the end of the period.
Strategy and targets
The recent positive trend in profitability enables the strong development of the
company aiming at ensuring the future growth. In 2016 the company is targeting
at acquiring new customers and new products to production while at the same time
securing that the operational efficiency and quality stay at high level. The
sales operations are enhanced, organisations and competencies of the factories
are developed further, a new operational model is implemented in global
sourcing, production capacity of both factories is developed and the utilisation
of the shared ERP is enhanced further.
The Board of Directors is focusing in growing the business further and is not
actively assessing opportunities for strategic alliances.
Outlook for 2016
Incap's estimates for future business development are based both on its
customers' forecasts and on the company's own assessments.
Due to the recent strong turbulence in world economy and the continued general
uncertainty it is very difficult to estimate the development of customer demand.
Most of the company's customers are indicating that their own demand will show a
moderate growth in 2016.
The electronics manufacturing volumes in Incap's factory in Kuressaare have
grown steadily and the positive development is expected to continue. The
progress in Indian operations has been strong and the revenue is estimated to
grow also in future, however with a more moderate pace than previously.
The Group's revenue in 2016 is estimated to be somewhat higher than in 2015 and
the operating profit (EBIT) is estimated to be approximately at the same level
than in 2015, provided that there are no major changes in exchange rates.
Board of Directors' proposal on measures related to the result
The parent company's loss for the financial period totalled EUR 772,720.93. The
Board of Directors will propose to the Annual General Meeting on 6 April 2016
that no dividend be paid and the result for the financial period be recognised
in equity.
Annual General Meeting 2016
The Annual General Meeting will be held on Wednesday, 6 April 2016 at 3 pm. at
BANK/Wall street, Unioninkatu 20, 00130 Helsinki. Notice to the Annual General
Meeting will be given on 11 March 2016.
Publication of the annual report 2015
The annual report of Incap Group including the Report of the Board of Directors
and the Auditor's report for 2015 will be published during week 11/2016 at the
company's website www.incapcorp.com.
Financial reporting of Incap in 2016
Incap will publish the Interim Management Report in compliance with IAS 34 for
January-June 2016 on Tuesday, 23 August 2016 as well as financial business
reports for January-March on Thursday, 12 May 2016 and for January-September on
Tuesday, 15 November 2016.
In Helsinki, 18 February 2016
INCAP CORPORATION
Board of Directors
For additional information, please contact:
Ville Vuori, President and CEO, tel. +358 400 369 438
Distribution:
Nasdaq Helsinki Ltd
Principal media
The company's home page www.incapcorp.com
ANNEXES
1 Consolidated Statement of Comprehensive Income
2 Consolidated Balance Sheet
3 Consolidated Cash Flow Statement
4 Consolidated Statement of Changes in Equity
5 Group Key Figures and Contingent Liabilities
6 Quarterly Key Figures
7 Calculations of Key Figures
INCAP IN BRIEF
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 470 people. Incap's share is listed on the
Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.
Annex 1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS), CONTINUING OPERATIONS
-------------------------------------------------------------------------------
(1,000 euros, unaudited)
1-12/2015 Change, % 1-12/2014 7-12/2015 7-12/2014
-------------------------------------------------------------------------------
REVENUE 30,556 65 18,499 17,312 10,345
Change in inventories of 165 -203 -159 -30 -73
finished goods
Other operating income 36 -87 280 8 31
Raw materials and 21,147 67 12,665 11,973 7,019
consumables used
Personnel expenses 3,154 11 2,841 1 550 1,340
Depreciation, amortisation 337 7 314 182 162
and impairment losses
Other operating expenses 2,437 40 1,738 1,371 578
OPERATING PROFIT/LOSS 3,692 248 1,061 2,213 1,205
Financing income and -470 -37 -747 -276 -254
expenses
PROFIT/LOSS BEFORE TAX 3,222 926 314 1,938 951
Income tax expenses -1,210 643 -163 -771 -163
PROFIT/LOSS FOR THE PERIOD 2,012 1,232 151 1,167 788
Earnnings per share 0.01 0.00 0.01 0.01
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-------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME 1-12/ Change, % 1-12/ 7-12/ 7.-12/
2015 2014 2015 2014
-------------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD, CONTINUING 2,012 1,232 151 1,167 788
OPERATIONS
PROFIT/LOSS FOR DISCONTINUED OPERATIONS 0 -100 396 0 332
PROFIT/LOSS FOR THE PERIOD 2,012 267 548 1,167 1,120
OTHER COMPREHENSIVE INCOME:
Items that may be recognised in profit or
loss at a later date:
Translation differences from foreign units 215 -42 370 -153 248
Other comprehensive income, net 215 -42 370 -153 248
TOTAL COMPREHENSIVE INCOME 2,227 143 917 1,014 1,368
Attributable to:
Shareholders of the parent company 2,227 143 917 1,014 1,120
Non-controlling interest 0 0 0
-------------------------------------------------------------------------------
Annex 2
CONSOLIDATED BALANCE SHEET (IFRS), CONTINUING OPERATIONS
-------------------------------------------------------------------------------
(EUR thousands, unaudited) 31 December 2015 Change, % 31 December 2014
-------------------------------------------------------------------------------
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 2,230 47 1,519
Goodwill 938 3 910
Other intangible assets 61 8 56
Other financial assets 6 -96 174
Other receivables 878 -3 906
TOTAL NON-CURRENT ASSETS 4,113 15 3,565
CURRENT ASSETS
Inventories 5,172 53 3,371
Trade and other receivables 6,771 21 5,585
Cash and cash equivalents 2,068 10 1,873
TOTAL CURRENT ASSETS 14,011 29 10,829
TOTAL ASSETS 18,124 26 14,394
EQUITY ATTRIBUTABLE TO EQUITY
HOLDERS OF THE PARENT COMPANY
Share capital 20 487 0 20,487
Share premium account 44 0 44
Reserve for invested unrestricted 19,464 11 17,471
equity
Exchange differences -673 -24 -888
Retained earnings -33,675 -6 -35,687
TOTAL EQUITY 5,647 296 1,427
NON-CURRENT LIABILITIES
Interest-bearing loans and 4,567 1,683 256
borrowings
NON-CURRENT LIABILITIES 4,567 1,683 256
CURRENT LIABILITIES
Trade and other payables 4,607 27 3,617
Current interest-bearing loans and 3,303 -64 9,093
borrowings
CURRENT LIABILITIES 7,910 -38 12,710
LIABILITIES 12,476 -4 12,967
TOTAL EQUITY AND LIABILITIES 18,124 26 14 394
-------------------------------------------------------------------------------
Annex 3
CONSOLIDATED CASH FLOW STATEMENT (IFRS), CONTINUING OPERATIONS
--------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
(EUR thousands, unaudited) 1-12/2015 1-12/2014
--------------------------------------------------------------------------
Cash flow from operating activities
Operating profit, continuing operations 3,692 1,061
Operating profit, discontinued operations 0 396
Operating profit, in total 3,672 1,457
Adjustments to operating profit 316 -528
Change in working capital -1,419 -1,164
Interest paid and payments made -918 -699
Interest received 85 11
Paid tax and tax refund -763 182
Cash flow from operating activities 992 -741
Cash flow from investing activities
Capital expenditure on tangible and intangible assets -940 -201
Proceeds from sale of tangible and intangible assets 0 229
Capital gain on shares 268 0
Cash flow from investing activities -672 28
Cash flow from financing activities
Proceeds from share issue 1,993 0
Drawdown of loans 2,996 2,381
Repayments of borrowings -5,159 -1,434
Repayments of obligations under finance leases 0 -26
Cash flow from financing activities -169 920
Change in cash and cash equivalents 151 207
Cash and cash equivalents at beginning of period 1 873 1,507
Effect of changes in exchange rates 43 158
Cash and cash equivalents at end of period 2,068 1,872
--------------------------------------------------------------------------
Annex 4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS), CONTINUING OPERATIONS
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
(EUR thousands,
unaudited)
-------------------------------------------------------------------------------
Share Share Reserve for Exchange Retained Total
capital premium invested differences earnings
account unrestricted
equity
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity at 1 20,487 44 17,471 -888 -35,687 1,427
January 2015
-------------------------------------------------------------------------------
Total 2,012 2,012
comprehensive
income
-------------------------------------------------------------------------------
Currency 215 212
translation
differences
-------------------------------------------------------------------------------
Transactions
with
shareholders
-------------------------------------------------------------------------------
Directed share 2,182 2,182
issue
-------------------------------------------------------------------------------
Transaction -189 -189
costs for
equity
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity at 31 20,487 44 19,464 -673 -33,675 5,647
December 2015
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity at 1 20,487 44 17,471 -1,258 -36,057 687
January 2014
-------------------------------------------------------------------------------
Total
comprehensive 548 548
income
-------------------------------------------------------------------------------
Currency
translation 370 370
differences
-------------------------------------------------------------------------------
Transactions
with
shareholders
-------------------------------------------------------------------------------
Other changes -177 -177
-------------------------------------------------------------------------------
Equity at 31 20,487 44 17,471 -888 -35,687 1,427
December 2014
-------------------------------------------------------------------------------
Annex 5
GROUP KEY FIGURES AND CONTINGENT LIABILITIES (IFRS), CONTINUING OPERATIONS
------------------------------------------------------------------------
(unaudited) 31 Dec 2015 31 Dec 2014
------------------------------------------------------------------------
Revenue, EUR million 30.6 18.5
Operating profit/loss, EUR million 3.7 1.1
% of revenue 12.1 6.0
Profit/loss before taxes, EUR million 3.2 0.3
% of revenue 10.5 2.0
Return on investment (ROI), % 26.0 11,2
Return on equity (ROE), % 56.9 15.4
Equity ratio, % 31.2 9.9
Net Gearing, % 98.3 523.95
Net debt, EUR million 3.6 5.5
Net interest-bearing debt, EUR million 5.6 7.5
Quick ratio 1.1 0.6
Current ratio 1.8 0.9
Average number of shares during the review 218, 228,070 109,114,035
period, adjusted for share issues
Earnings per share (EPS), EUR 0.01 0.00
Equity per share, EUR 0.03 0.01
Dividend per share, EUR 0.00 0.00
Dividend out of profit, % 0 0
P/E ratio 15.25 43.3
Trend in share price
Minimum price during the period, EUR 0.03 0.04
Maximum price during the period, EUR 0.20 0.11
Mean price during the period, EUR 0.12 0.06
Closing price at the end of the period, EUR 0.16 0.06
Total market capitalisation, EUR million 34.3 6.5
Trade volume, no. of shares 123,997,394 40,584,525
Trade volume, % 56.8 37.2
Investments, EUR million 0.9 0.2
% of revenue 3.0 1.1
Average number of employees 425 404
CONTINGENT LIABILITIES, EUR million
FOR OWN LIABILITIES
Mortgages and pledges 14.6 14.5
Off-balance sheet liabilities 1.2 1.7
------------------------------------------------------------------------
Annex 6
KEY FIGURES BY REPORT PERIOD (IFRS), CONTINUING OPERATIONS
-----------------------------------------------------------------------
1-12/ 1-12/ 7-12/ 7-12/ 1-6/ 1-6/
2015 2014 2015 2014 2015 2014
-----------------------------------------------------------------------
Revenue, 30.6 18.5 17.3 10.3 13,3 8.2
EUR million
Operating profit, 3.7 1.1 2.2 1.2 1,5 -0.1
EUR million
% of revenue 12 6 13 12 11 -2
Profit before taxes, 3.2 0.3 1.9 1.0 1,3 -0.6
EUR million
% of revenue 11 2 11 9 10 -8
Return on investment 26.0 11.2 22.8 24.5 19,2 -0.9
(ROI), %
Return on equity 56.9 15.4 45.4 208.8 55,8 -412.5
(ROE),%
Equity ratio, % 31.2 9.9 31.2 9.9 26,3 0.6
Net Gearing, % 98.3 523.9 98.3 523.9 100,4 9,831.3
Net debt, 3.6 5.5 3.4 5.5 4,7 7.9
EUR million
Net interest-bearing 5.6 7.5 5.6 7.5 4,7 8.1
debt,
EUR million
Average 218, 109, 182, 109, 109 109,
number of 228,070 114,035 855,938 114,035 716 875 114,035
shares during
the review
period, adjusted
for share
issues
Earnings per share 0.01 0.00 0.01 0.01 0,01 -0.01
(EPS), EUR
Equity per share, 0.03 0.01 0.03 0.01 0,02 0.00
EUR
Investments, 0.9 0.2 0.2 0.1 0,7 0.1
EUR million
% of revenue 3.0 1.1 1.1 1.0 5,5 1.2
Average number of 425 404 456 422 393 387
employees
-----------------------------------------------------------------------
Annex 7
CALCULATION OF KEY FIGURES
100 x (profit/loss for the period + financial
Return on investment, % expenses)
---------------------------------------------------
equity + interest-bearing financing loans
Return on equity, % 100 x profit/loss for the period
---------------------------------------------------
average equity during the financial period
Equity ratio, % 100 x equity
---------------------------------------------------
balance sheet total - advances received
Net gearing, % 100 x interest-bearing net financing loans
---------------------------------------------------
equity
Net liabilities liabilities - current assets
Quick ratio current assets
---------------------------------------------------
short-term liabilities - short-term advances
received
Current ratio current assets + inventories
---------------------------------------------------
short-term liabilities
Earnings per share net profit/loss for the period
---------------------------------------------------
average number of shares during the period,
adjusted for share issues
Equity per share equity
---------------------------------------------------
number of shares at the end of the period,
adjusted for share issues
VAT-exclusive working capital acquisitions,
Capital expenditure without deduction of investment subsidies
average of personnel numbers calculated at the end
Average number of employees of each month
closing price for the period x number of shares
Total market capitalisation available for public trading
[HUG#1987087]
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