Incap's revenue dropped 51% YoY

Incap's revenue was EUR 5.5 million, down approximately 51% year-on-year (Q1/2013: EUR 10.7 million) due to the decreased manufacturing volumes in the company's factories in Europe. The revenue was according to the estimate. Incap is expecting the revenue for 2014 to be significantly smaller than in 2013 when the revenue amounted to EUR 36.8 million. Despite the decrease in revenue the operating result (EBIT) was improving year-on-year (EUR -1.4 million in Q1/2013) being EUR -0.2 million as a result of activities improving cost-efficiency. Net profit was also improving remarkably year-on-year (EUR -1.9 million in Q1/2013) being EUR -0.4 million. Based on the successful financing negotiations with the company's Finnish bank, the financial position of Incap Group has improved. The loan instalments have been postponed so that the previously estimated instalments for the second half of the year were decreased to a half. Further, the covenants were re-negotiated and include now only the EBITDA for the last 6 months. As the company is tracking plan on the revenue, profitability and working capital the company estimates that the covenants are met in the next testing date on 30 June 2014. The Group's equity ratio on 31 March 2014 was 2,9%. The parent company's equity was EUR 10.2 million, representing 49,6% of the share capital. "The first months of 2014 have been full of activities to improve our operations. The factory level has been focusing on daily operations and achieved good results for example in improving the delivery accuracy and productivity. Also small but very important savings in daily activities have been found. The company's top management has been focusing on improving the sufficiency of funding and the good relationships with customers and other stakeholders. There still is a lot to do but I am sure that after all the changes and improvements we are in a good position to reach our targets for this year," commented Fredrik Berghel, President and CEO of Incap Group.