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Electronics Production |
Incap swings to profit
2014 seem to have been a year of change for Incap as profitability reached a clear turning point, and both the Group's operating profit and net profit for the full year were positive.
The Group's revenue changed direction towards growth mid year, but still remained lower YoY as estimated. The measures of the turnaround program continued and with that profitability improved, while at the same time creating conditions for growth in revenue.
The company divested its mechanics manufacturing and focused its operations in the contract manufacturing of electronics in its factories in India and Estonia. Despite the improvement of the company's financing position sufficiency of working capital still is a challenge.
Revenues for continuing operations (excluding the mechanics factory in Vaasa) amounted to EUR 18.5 million in 2014, down approximately 28% year-on-year (2013: EUR 25.8 million). The decrease in revenue was expected and was caused by lower manufacturing volumes in the company's factory in Estonia.
Full-year operating profit (EBIT) improved clearly from previous year and amounted to approximately EUR 1.1 million (EUR -6.2 million). Approximately EUR 0.5 million of the operating profit was derived from non-recurring items in the dissolution of the provision for rental costs of the factory in Estonia.
Net profit for the financial period amounted to EUR 0.2 million, and increase from the year before at EUR -8.8 million.
