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The ICAPE Group, a global technology distributor of printed circuit boards ("PCB") and custom-made electromechanical parts, announced its half-year results for the first half of 2024, which ended on June 30, 2024, and approved by the Board of Directors on September 25, 2024.
Yann DUIGOU, ICAPE Group’s CEO, stated: "Our profitability indicators were impacted by a sluggish market environment. In this context, we are actively stepping up the deployment of synergies, accelerating cost rationalization, to return to higher levels of profitability as soon as possible. Having completed the major acquisition of NTW in Japan, we are also announcing the acquisition of François Frères, enabling the Group to achieve an immediately accretive transaction and to integrate our principal intermediary and long-standing business partner into our structure. The implementation of our operating levers, the success of our external growth policy, and the synergy potential of our recent acquisitions will enable us to take full advantage of the upturn in business. We are confident of achieving our sales and profitability targets.”
Simplified income statement
In € thousands (IFRS standards) | 30/06/2023 | 30/06/2024 | Var. % |
Revenue | 94,519 | 86,619 | -8.4% |
Cost of goods | -65,400 | -57,256 | -12.5% |
External expenses | -9,518 | -10,150 | +6.6% |
Payroll costs | -12,231 | -13,544 | +10.7% |
Taxes, other operating income, and expenses | -296 | -162 | -45.3% |
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EBITDA | 7,074 | 5,507 | -22% |
% revenue | 7.5% | 6.4% | -1.1 pts |
Operating depreciation and amortization | -1,900 | -1,854 | -2.4% |
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EBITA | 5,174 | 3,653 | -29% |
% revenue | 5.5% | 4.2% | -1.3 pts |
Amortization of acquisition-related intangible assets | -443 | -736 | +66.1% |
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EBIT | 4,731 | 2,917 | -38% |
% revenue | 5.0% | 3.4% | -1.6 pts |
Other operating income and expenses | -866 | -137 | -84.2% |
Financial result | -1,290 | -1,452 | +12.6% |
Income tax | -1,029 | -70 | -93.2% |
Income from discontinued activities | 375 | -218 | -158.1% |
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Net income | 1,921 | 1,040 | -46% |
% revenue | 2.0% | 1.2% | -0.8 pts |
Business activity and financial results
As of June 30, 2024, Group revenue stood at €86.6 million, down 8.4% compared with the first half of 2023, reflecting the economic downturn in the first quarter, followed by an improvement in the following quarter. On a sequential basis, sales were up 1.9% on the previous half-year, indicating the first signs of the recovery expected in the second half.
The backlog maintained at a high level of €47.2 million as of June 30, 2024, compared with €50.9 million at the end of December 2023.
External expenses and payroll costs increased by 7% and 11% respectively compared with the same period last year, mainly because of recent acquisitions. Against this backdrop, the Group is actively deploying operational synergies to support short-term profitability.
Taking all these factors into account, EBITDA margin fell by 110 basis points over the period to 6.4%. Operating income recurring followed a similar trajectory, falling by 38% to €2.9 million at the end of June 2024. After taking into account financial result of € -1.5 million, other operating income and expenses of €-0.1 million, and income from discontinued operations of € -0.2 million, net income stood at € 1.0 million as of June 30, 2024, compared with € 1.9 million at end-June 2023, down 46%.
As of June 30, 2024, the Group's cash position stood at €28.2 million. Financial debt stood at €56.3 million, compared with €59.5 million as of December 31, 2023, giving the Group net debt as of June 30, 2024, of €28.1 million, compared with €26.8 million as of December 31, 2023.
An extract from the IFRS financial statements (balance sheet and income statement) is provided in the appendix to this press release.
The 2024 half-year financial report is scheduled for publication on October 4.
Continuation of the Group's external growth strategy in H1 2024 and beyond
In line with its strategy for 2022 and 2023, the Group pursued its policy of selective acquisitions in the first half of 2024 and beyond. The operating assets of Italian distributor P.C.S and design company Studio E2 were acquired in February 2024, consolidating the Group's position on the Italian peninsula and adding printed circuit board design to its already extensive range of services.
On September 19, 2024, the Group also announced the closing of its acquisition of the NTW group, one of the leading PCB distributors in Japan and in Southeast Asia. With proven market expertise and 7 subsidiaries located close to the world's PCB production centers, the NTW group has developed a portfolio of major Japanese accounts that the ICAPE Group had not previously addressed. NTW's management will support the ICAPE Group in this integration, to deploy all necessary synergies between the two organizations.
Finally, the Group today announces the acquisition of François Frères. This transaction is immediately accretive, internalizing the Group's main intermediary and reducing the agent fees paid by the ICAPE Group. It also brings highly experienced PCB market experts into the ICAPE Group.
All Group objectives confirmed
Having achieved €45 million in additional revenue through external growth since the beginning of 2023, and with solid fundamentals in a gradually improving market context, the Group confirms all its commercial and financial objectives, namely:
- an average annual organic growth rate of 10% between 2023 and 2026;
- around €120 million in additional revenue from external growth between the beginning of 2023 and the end of 2026;
- an EBIT margin of around 9.5% by 2026;
- medium-term sales of around €500 million.
Next Financial release
- 2024 Third-Quarter Revenue, Wednesday, November 13th, 2024, after market close
Appendices – Financial Statements (IFRS)
CONSOLIDATED BALANCE SHEET
(In € thousands) | 31/12/2023 | 30/06/2024 |
Goodwill | 23,667 | 23,788 |
Intangible assets | 23,269 | 23,597 |
Tangible assets | 3,755 | 3,479 |
Rights of use and other fixed assets | 7,503 | 6,622 |
Total fixed Assets | 58,194 | 57,487 |
Inventories and work-in-progress | 11,357 | 9,828 |
Trade and other receivables | 41,888 | 41,896 |
Other current assets | 1,508 | 2,149 |
Cash and cash equivalents | 32,747 | 28,216 |
Total current assets | 87,500 | 82,090 |
Total assets held for sale | 5,149 | 4,988 |
Total Assets | 150,843 | 144,565 |
Share capital | 3,235 | 3,235 |
Additional paid-in capital | 16,912 | 15,301 |
Retained earnings | 6,746 | 11,381 |
Net income for the year | 4,482 | 994 |
Total equity - Group share | 31,375 | 30,912 |
Non-controlling interests | 312 | 378 |
Total equity | 31,687 | 31,290 |
Borrowings | 32,263 | 30,271 |
Non-current lease liabilities | 4,386 | 3,569 |
Other non-current liabilities | 3,788 | 3,775 |
Total non-current liabilities | 40,436 | 37,615 |
Current borrowings and bank overdrafts | 20,983 | 20,657 |
Current lease liabilities | 1,870 | 1,822 |
Trade and other payables | 48,664 | 46,834 |
Other current liabilities | 5,575 | 4,697 |
Total current liabilities | 77,089 | 74,011 |
Total liabilities associated with assets held for sale | 1,630 | 1,650 |
Total liabilities and equity | 150,843 | 144,565 |
CONSOLIDATED CASH FLOW STATEMENT
(In € thousands) | 30/06/2023 | 31/12/2023 | 30/06/2024 |
Net income | 1,921 | 4,230 | 1,040 |
Elimination of depreciation, amortization and provisions | 2,707 | 5,399 | 2,913 |
Elimination of income tax expense, net of taxes paid | -200 | -1,059 | -564 |
Elimination of net cost of debt | 571 | 853 | 1,173 |
Change in working capital requirement | -9,461 | -1,174 | -1,259 |
Other operating cash flows | -65 | -20 | -43 |
Cash flows from operating activities | -4,528 | 8,229 | 3,260 |
Acquisition of operating assets and subsidiaries | -5,438 | -11,214 | -732 |
Acquisition of property, plant and equipment, and intangible assets | -1,625 | -1,621 | -1,085 |
Other cash flows from investing activities | 90 | -2,344 | -6 |
Cash flows from investing activities | -6,972 | -15,179 | -1,822 |
Issuance of borrowings | 15,348 | 44,346 | 277 |
Repayment of borrowings | -4,566 | -28,517 | -3,724 |
Interest paid | -628 | -1,654 | -1,024 |
Dividends paid to Group shareholders | -1,614 | -1,614 | -1,610 |
Other cash flows from financing activities | 384 | -730 | -297 |
Cash flows from financing activities | 8,926 | 11,832 | -6,378 |
Impact of changes in exchange rates and application of IFRS 5 | -63 | -140 | 403 |
Change in cash and cash equivalents | -2,636 | 4,743 | -4,538 |
Opening cash position | 27,941 | 27,941 | 32,684 |
Closing cash position | 25,305 | 32,684 | 28,146 |
Click here to learn more about ICAPE Group.
Publisher: PCB Directory
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