- EBITDA and EBIT margins increased to 7.7% vs. 6.6% in 2022
and to 5.0% vs. 4.5%
- Significant increase in operating cash flow to €8.2 million
vs. €3.0 million in 2022 due to improved change in WCR
- Continuation and reinforcement of the operating cost
rationalization policy
- Reaffirmation of all Group growth and profitability
targets
- Proposal to distribute a dividend of €0.20 per share, i.e. a
distribution rate of 39% of net income
Regulatory News:
The ICAPE Group (ISIN code: FR001400A3Q3 - Ticker: ALICA), a
global technology distributor of printed circuit boards ("PCB") and
custom-made electromechanical parts, today announced its results
for the year ended December 31, 2023, as approved by the Board of
Directors on March 26, 2024.
Yann DUIGOU, ICAPE Group’s CEO, stated: "The crisis in
the components market during the pandemic, the shortage of
containers, and various other factors pushed industrial companies
to increase their orders as a precaution against possible
shortages. After the pandemic, 2023 was a year of general decline
for the global PCB market, largely due to this overstocking and the
economic slowdown. Despite these adverse conditions, we managed to
close the 2023 financial year with an improved EBIT margin. This
performance, which reflects the deployment of purchasing synergies
from acquisitions made since 2021, can also be seen at operational
level, thanks to our policy of strict cost control. Our main
financial indicators are showing significant progress,
demonstrating the adaptability and resilience of our business
model. Various signs point to the end of the downturn and, in 2024,
the Group intends to reactivate its growth momentum while
continuing to improve profitability, in particular by stepping up
the rationalization of general operating costs. The Group's efforts
will also focus on further improving WCR to strengthen cash
generation. In addition, we recorded an increasing number of new
references in 2023, a guarantee for our future growth. On these
solid foundations, we are in a position to reiterate all our growth
and profitability targets."
Simplified income statement
In €m (IFRS standards)
2022
2023
Var.
Revenue
219.6
179.5
-18.3%
% growth
-18.3%
Cost of goods sold
(157.4)
(121.1)
-23.1%
Transport
(11.3)
(7.4)
-34.7%
Agent fees
(1.3)
(1.3)
+2.8%
Payroll costs
(26.5)
(25.8)
-2.6%
G&A
(8.6)
(10.2)
+18.5%
EBITDA
14.6
13.7
-5.6%
% revenue
6.6%
7.7%
+1.0 pt
D&A of operating assets
(3.7)
(3.8)
+0.4%
EBITA
10.8
10.0
-7.7%
% revenue
4.9%
5.6%
+0.6 pt
D&A of intangible assets related to
acquisitions
(0.9)
(1.1)
+24%
EBIT
10.0
8.9
-10.4%
% revenue
4.5%
5.0%
+0.4 pt
Other income and expenses
0.1
(0.4)
n.a
Financial Result
(2.3)
(2.3)
-2.1%
Income Tax
(0.4)
(1.1)
+141.2%
Income from discontinued activities
(2.0)
(1.0)
-49.2%
Net Income
5.3
4.2
-20.1%
% revenue
2.4%
2.4%
0.1 pt
Improving profitability in an adverse environment
As of December 31, 2023, the Group’s revenue amounted to €179.5
million, down 18.3% compared to 2022. The deflationary effects on
PCB manufacturing prices in China in 2023 accounted for around 45%
of this decline. Falling global demand for electronic products and
the environment of high central bank interest rates in the West
explain the fall in order volumes, which accounted for 55% of this
decline of revenue.
The ICAPE business, dedicated to the distribution of PCB,
represented 83% of full-year revenue, and the CIPEM business,
dedicated to the distribution of electromechanical parts, accounts
for 17%.
At the end of December 2023, the ICAPE Group recorded an order
backlog of €50.9 million.
The policy of activating purchasing synergies, enabled by the
M&A strategy pursued by the Group, contributed to optimize the
weight of purchases consumed over the period, both in value and as
a proportion of revenue (67.5% in 2023 vs. 71.7% in 2022). This
improvement, together with a reduction of almost 35% in
transportation fees over 2023, enabled the Group to stabilize its
gross margin in value, at €49.8 million.
Payroll costs are slightly down by 2.6% compared with 2022,
reaching €25.8 million. This reduction is due to the
rationalization of organizations following the various
integrations. Administrative expenses, on the other hand, are up by
18.5%, due to a broader scope of activity than in 2022 and costs
associated with the rationalization of the Group's legal
structure.
In line with the improved gross margin as a percentage of
revenue, and thanks to the success of the cost control strategy,
EBITDA and EBITA rose slightly as a percentage of revenue, by
around 1 point for the former and 0.6 for the latter. EBIT follows
the same trend, rising as a percentage of revenue by 0.4 points to
5.0%, for a total of €8.9 million, compared with €10.0 million in
2022.
After considering financial income of -€2.3 million, stable
compared with 2022, a higher tax charge of - €1.1 million, and net
income from discontinued operations of - €1.1 million, net income
reached €4.2 million on December 31, 2023, compared with €5.3
million in 2022, remaining stable as a percentage of revenue.
As of December 31, 2023, the ICAPE Group's gross cash position
improved significantly to €32.7 million, compared with €27.9
million at the end of 2022, thanks in particular to a significant
improvement in WCR. Financial debt amounted to €49.2 million,
compared with €36.0 million at the end of 2022, bringing the
Group's net debt as of December 31, 2023, to €16.5 million,
compared with €8.0 million a year earlier. This increase stems from
the successful placement in December 2023 of a €47 million
financing package, including €41 million in senior debt (€21
million as a Refinancing Loan and €20 million external growth
credit facility) and €6 million in Recovery Bonds, with a pool of 9
European banks. These new resources, which testify to the trust of
the Group's financial partners, reinforce the Group's short- and
medium-term external growth strategy.
2023 Highlights
In 2023, the ICAPE Group pursued its policy of offensive
external growth, reinforcing its role as a key technological expert
in the supply chain for printed circuit boards and custom-made
electromechanical parts, with the following acquisitions:
- FIMOR Electronics, French distributor of custom-made technical
parts;
- HLT, German PCB distributor;
- Princitec, a high value-added German supplier of PCB;
- PCB Solutions, Ustek Incorporated and Nujay Technologies Inc,
three US companies specialized in PCB trading in the United States
for over twenty years;
- Bordan, a German supplier specializing in the design of
custom-made technical parts.
These various operations were 85% financed from the Company's
own funds and integrated to various ICAPE Group subsidiaries.
In parallel with these acquisitions, the ICAPE Group
strengthened its fundamentals in 2023. On one hand, by
consolidating its supply chain through the deployment of a new
European logistics solution in Modena (Italy), a strategic
location, and, on the other, by diversifying its sources of supply
and investing in its network of factories.
Post-closing events
On February 12, 2024, the ICAPE Group announced the acquisition
of the operating assets of Italian distributor P.C.S. and the
design company Studio E2. Like all the Group's acquisitions, P.C.S.
offers strong potential in terms of purchasing and commercial
synergies with the Group's local subsidiary, while benefiting from
a high level of profitability. The integration of Studio E2
completes the already extensive range of services provided by the
ICAPE Group to its customers, with the addition of printed circuit
board design. The Group thus now enjoys proven expertise across the
entire printed circuit board value chain, from design to delivery
to the end customer.
Dividend distribution policy
The ICAPE Group intends to continue its dividend distribution
policy initiated in 2022. To this end, the Board of Directors
decided to propose to the Annual General Meeting to be held on
Wednesday, May 22, 2024, the distribution of an ordinary dividend
in respect of the 2023 financial year of €0.20 per share,
representing 39% of the consolidated net income generated in 2023.
The detachment date for this dividend is scheduled for June 19,
2024, with payment on June 21, 2024.
Reaffirmation of growth and profitability financial
targets
As announced with the publication of 2023 full-year revenue on
February 8, 2024, the objective of achieving revenue of around €500
million by 2026 is now expected to be achieved in the medium term,
due to the persistence of an adverse economic environment. However,
as the fundamentals remain strong, the Group reaffirms all its
targets for 2026, namely:
- an average annual organic growth rate of 10% between 2023 and
2026;
- around €120 million in additional revenue from external growth
between July 1st, 2023, and the end of 2026;
- an EBIT margin of around 9.5% by 2026.
The Board of Directors of Icape Holding, which met on March 26,
2024, reviewed and approved the Group's consolidated financial
statements for the year ended December 31, 2023. The audit
procedures have been performed and the audit report relating to the
certification is in the process of being issued.
Information available on the Company’s website
The 2023 full-year financial report will be available on April
5, 2024 on the Company's website.
Next Financial release
- 2024 First Quarter Revenue, Wednesday, May 15th, 2024,
after market close
About the ICAPE Group
Founded in 1999, the ICAPE Group acts as a key technological
expert in the PCB and technical parts supply chain. With a global
network of 35 subsidiaries and a major presence in China, where
most of the world’s PCB production is done, the Group is a
one-stop-shop provider for the products and services which are
essentials for customers. As of December 31, 2023, the ICAPE Group
recorded a consolidated revenue of €179.5 million.
For more information: icape-group.com
Appendices – Financial
Statements (IFRS)
CONSOLIDATED BALANCE SHEET
in €m (IFRS standards)
2022
2023
Goodwill
20.9
23.7
Intangible Assets
16.4
23.3
Tangible Assets
3.7
3.8
Other non-current assets (incl. Rights of
use)
9.3
7.5
Total fixed Assets
50.4
58.2
Inventories
13.9
11.4
Accounts Receivable
45.3
41.9
Other Receivables
1.2
1.5
Cash
28.0
32.7
Total Current Assets
88.3
87.5
Total Assets to be Divested
6.0
5.1
Total Assets
144.7
150.8
Equity
20.0
19.8
Reserves
3.0
7.1
Net Income / (loss)
5.5
4.5
Shareholdings
0.6
0.3
Total Equity
29.1
31.7
Loans and financial liabilites (incl.
non-current leases)
43.6
59.5
Trade and other payables
56.6
48.7
Other liabilites
12.1
9.4
Total Liabilities
112.2
117.5
Total Liabilities to be
Divested
3.5
1.6
Total Liabilities and Equity
144.7
150.8
CONSOLIDATED CASH FLOW STATEMENT
in €m (IFRS standards)
2022
2023
Net Income
5.3
4.2
Depreciation and amortization
3.3
5.4
Operating cash flow after cost of net
financial debt and tax
8.6
9.6
Less tax and expenses (income)
0.2
-1.1
Less cost of net financial debt
0.7
0.9
Operating cash flow before cost of net
financial debt and tax
9.5
9.4
Change in working capital requirements
-6.7
-1.2
Other Operating Impacts
0.2
0
Cash flows from operating
activities
3.0
8.2
Purchases of subsidiaries
-16.5
-11.2
Acquisition /disposal of tangible and
intangible assets
-4.5
-1.6
Other impacts of investment operations
0
-2.5
Other impacts of Investments
0.6
0.2
Cash Flow from Investing
Activities
-20.4
-15.2
Increase (decrease) in capital
17.7
0
Net Sales of treasury shares
-0.2
-0.1
Long-term debts of issuance
16.0
45.6
Repayments of long-term debts
-13.5
-30.3
Financial interests paid
-0.9
-1.7
Dividends
0
-1.6
Cash flows from investing
activities
19.0
11.8
Foreign currency effects and IFRS 5
0.5
-0.1
Change in Cash
2.0
4.7
Cash at the beginning of the period
25.9
27.9
Cash at the end of the period
27.9
32.7
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240327549058/en/
ICAPE Group CFO Arnaud Le Coquic Tél : 01 58 18 39
10 investor@icape.fr
Investors Relations NewCap Nicolas Fossiez
Louis-Victor Delouvrier Tél : 01 44 71 94 98 icape@newcap.eu
Media Relations NewCap Arthur Rouillé Antoine
Pacquier Tél : 01 44 71 94 94 icape@newcap.eu
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