© NCAB Group PCB | November 13, 2020
Continued growth for NCAB – a return to normalisation started in Q3
“During the first part of the third quarter, order intake remained weak. At the end of the quarter, however, we noted a general positive return towards more normal levels for the inflow of orders,” says Peter Kruk, who assumed the role of President and CEO on October 1.
Net sales for NCAB increased by 22% to SEK 536.7 million (EUR 52.45 million), compared to SEK 439.8 million (EUR 42.96 million) during the same period last year. The increase is a result of the acquisitions of Flatfield and Bare Board Group. Order intake increased 15% to SEK 512.3 million (EUR 50.04 million) from SEK 446.6 million (EUR 43.61 million) in the same quarter last year. The company says that the order intake has gradually improved during the quarter. “A return to normalisation for NCAB commenced during the third quarter after the very unique first half of the year. We reported an unusually large order intake during the first quarter due to customers wishing to secure deliveries when parts of China were closed down as a result of the pandemic. Subsequently, Chinese factories resumed operations during the second quarter, while many countries in which our customers are operational experienced various kinds of lockdowns or restrictions that resulted in reduced order intake for NCAB,” says the new CEO in his first quarter report. EBITA increased to SEK 50.1 million (EUR 4.99 million) from SEK 46.3 million (EUR 4.52 million), representing an EBITA margin of 9.3%. Operating profit was SEK 47.2 million (EUR 4.60 million) compared with SEK 45.9 million (EUR 4.48 million) during the third quarter last year. “During the first part of the third quarter, order intake remained weak. At the end of the quarter, however, we noted a general positive return towards more normal levels for the inflow of orders. Nordic, which was relatively strong during the first half of the year, reported a somewhat weaker order intake during the quarter, while Europe rebounded. This is particularly true in the UK, where we have seen improvements in the transport sector. In Germany, our market remained strong during the quarter. We also saw a recovery in southern Europe, which emerged from lockdown during the quarter. Our newly acquired company in the Netherlands is doing very well, and its integration into NCAB has proceeded positively despite being largely conducted digitally,” the CEO continues. For North America, the company says it is seeing growth continuing and profitability is on the rise. “The acquisition in the USA that was carried out in April is now in the process of being integrated into NCAB. The fact that we now have manufacturers in Taiwan is appreciated by many customers, and we are working to make them available for all of NCAB’s customers,” Mr. Kruk says. In the company’s East region, Russia had a somewhat weaker quarter, while China reported relatively healthy sales. Order intake in China has declined, however, in part due to a shortage of components at our customers and the impact of US trade tariffs. “All in all, my perception is that NCAB has handled the coronavirus pandemic well during the first three quarters of the year and that NCAB has a strong organisation, is well positioned not the least with our strong balance sheet and has great future potential,” the CEO concludes.