NCAB Releases Q1 2022 Interim Report


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NCAB Group presented their Interim report for the first quarter 2022.

January-March 2022

  • Net sales increased by 85% to SEK 1,141.3 million (617.1). In USD, net sales increased 66%. For comparable units, net sales increased by 60%, and in USD 42%.
  • Order intake increased 20% to SEK 1,171.3 million (978.9). In USD, the increase was 8%. For comparable units, order intake rose 2%, while the decrease in USD was 8%.
  • EBITA increased 151% to SEK 146.3 million (58.4), representing an EBITA margin of 12.8% (9.5).
  • EBITA was negatively impacted by an additional purchase consideration for the acquisition of Prevent, which was SEK 3.2 million higher than the provision. EBITA, excluding these costs, was SEK 149.5 million, corresponding to a margin of 13.1% (9.5).
  • Operating profit was SEK 93.8 million (55.4) and was burdened by impairment losses of SEK 43.2 million for the termination of NCAB’s Russian operations. Operating margin was 8.2% (9.0). Excluding the impairment, operating profit amounted to SEK 137.0 million (55.4).
  • Profit after tax was SEK 66.2 million (40.7).
  • Earnings per share* before and after dilution was SEK 0.35 (0.22).

Significant events during and after the quarter

  • On 2 January 2022, 100% of the shares was acquired in META Leiterplatten in Germany.
  • The Board of Directors proposes to the 2022 AGM a dividend of SEK 0.60 per share, 50% of which to be paid in May and 50% in October (in 2021, SEK 0.50* per share was paid as an ordinary dividend and SEK 1.00 as an extra dividend).
  • On 28 February, all deliveries were halted to customers in Russia and on 8 April NCAB divested its operations in Russia to the Russian management for 1 Ruble.

*Calculated after 10:1 split

New financial targets

In the autumn of 2021, NCAB Group announced that the financial targets published in connection with the company’s IPO in 2018 would be revised in 2022. Yesterday, the 27:th April, the Board of NCAB has set new financial targets which were published in a press release. The new medium-term objectives are: 

  • Net sales of SEK 8 billion in 2026, achieved by approximately equal parts organic and acquired growth.
  • EBITA of SEK 1 billion in 2026.
  • Net debt less than 2x EBITDA (unchanged from before).
  • Dividend based on available cash flow amounting to approximately 50% of net profit (unchanged from before).

"Despite the turbulent times, there is strong demand for NCAB’s products and services. It is positive that order intake has continued to grow and exceeds net sales despite a stabilisation in lead times. Our conclusion is that demand for PCBs is continuing to rise while NCAB is also growing its market share. The acquisitions completed in 2020 and 2021 have also made a significant contribution.

Order intake rose 20 per cent year-on-year to SEK 1, 171 million, slightly higher than net sales of SEK 1, 141 million for the quarter, an increase of 85 per cent or 42 per cent for comparable units in USD. Demand is strong in all customer segments and industries, both traditional industries and greentech, such as electrification and IoT. EBITA increased 151 per cent to SEK 146 million, with an EBITA margin of 12.8 percent,” says Peter Kruk, CEO, NCAB Group.

The continued strong growth in net sales was a natural consequence of the higher order intake we witnessed in the third and fourth quarters of 2021. The higher EBITA margin was the result of synergies from our acquisitions but also from general scale effects.

In the Nordic segment, it was highly gratifying to see broad net sales increases in all countries, with the greatest contribution from Norway and Denmark. The acquisition of Elmatica in Norway also yielded a very positive contribution.

In the Europe segment, we noted the main net sales increases in the UK, Germany, Benelux and Italy. Our acquisitions, Flatfield in the Netherlands and Prevent in Italy have been successful and the minor acquisitions, sas and META in Germany, have clearly strengthened our market position, which is generating new customers.

Net sales also increased in North America, both in our previous NCAB operations and in the acquired BBG and RedBoard. 

The East segment faced greater challenges during the quarter. Russia’s war in Ukraine led initially to the cessation of PCB deliveries to Russia regardless of whether or not these were included in sanctions. We subsequently conducted an analysis and assessment of our operations in Russia and concluded that we could see more risks than opportunities by continuing to operate in the country. This culminated in the divestment of the Russian operations to the management of NCAB Russia in April, after the end of the quarter. This was a difficult decision. Our staff and management have been experienced, knowledgeable and loyal – many for more than 20 years. NCAB has however concluded that there was no value of the Russian operation neither in the short nor medium term. The cost to us was about SEK 43 million, which was booked as a write-down.

Our order intake in China were weaker as many Chinese customers were forced to close due to new outbreaks of coronavirus and restrictions. However, production at our Chinese factory partners has progressed well, though some delivery delays were seen due to freight problems. Like so many other companies, some of our customers are experiencing problems with component deliveries.

We recently published our Annual and Sustainability Report for 2021. As part of sustainability work, we have now also reviewed our impact on the climate according to Scope 1, 2 and 3. This is another important step forward and provides us with an excellent platform for future sustainability efforts.

We have now decided on new financial targets. Our new financial targets clearly show our ambitions to develop NCAB in the coming years. All in all, I am optimistic about market demand and the opportunities offered by our business model and how we add value to our customer. We are continuing to focus on profitable growth, both organically and as witnessed in recent years, through acquisitions. We have an exciting pipeline of acquisition candidates.

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