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InTiCa Systems AG: Initial forecast for 2020 following a strong fourth quarter
Disclosure of inside information in accordance with Article 17 of Regulation (EU) No. 596/2014
Sales expected to rise to over EUR 70 million (2019: EUR 65.7 million)
Positive EBIT in the range EUR 0.5 million to EUR 1.0 million (2019: EUR 2.1 million)
Optimistic about 2021 due to high level of orders on hand
Based on the development of its business in the fourth quarter, InTiCa Systems AG (ISIN DE0005874846, ticker IS7), which is listed in the Prime Standard on Frankfurt Stock Exchange, is issuing initial guidance for the 2020 financial year. In view of the high uncertainty caused by the impact of the COVID-19 pandemic, it was not possible to issue a qualitative forecast within specific ranges until now.
In its interim report on the first nine months, the company assumed that at year end earnings would be below the prior-year level. Following a strong spurt at the end of the year, the Board of Directors now assumes a rise in Group sales to over EUR 70 million (2019: EUR 65.7 million), while EBIT is expected to be positive between EUR 0.5 million and EUR 1.0 million (2019: EUR 2.1 million). Driven, among other things, by a hike in demand for electric cars, the Automotive segment made a particularly strong contribution to sales growth. The entire e-solutions business continued to report high demand and increased its share of total Group sales to well over 50% in 2020. When comparing earnings with the previous year, it should be noted that the sharp depreciation of the Czech koruna and Mexican peso at the start of the coronavirus pandemic led to significant currency losses, which increased other expenses but had no impact on cash flows.
At the end of the first nine months, sales and earnings were still well below the prior-year figures. However, there was a certain recovery in the fourth quarter due to the high level of orders on hand. Despite rising infections throughout Europe, production continued more or less smoothly. An additional challenge was the high volume of order call-offs by customers within a short time. Consequently, not all orders could be delivered in 2020. With orders on hand in the triple-digit millions range, overall the order situation for 2021 remains extremely positive. Nevertheless, returning to the pre-pandemic growth path remains a long process and is susceptible to setbacks. Uncertainty therefore remains high, especially as the infection situation is still critical and there is a possibility of tighter restrictions. Given its general strategic focus, InTiCa Systems AG is nevertheless confident that it will emerge strengthened from the present difficult situation.
The provisional figures for the 2020 financial year will probably be published on March 24, 2021. Publication of the annual report with the audited figures for 2021 is scheduled for April 22, 2021
Forward-looking statements and predictions
This press release contains statements and forecasts referring to the future development of InTiCa Systems AG which are based on current assumptions and estimates by the management that are made using information currently available to them. If the underlying assumptions do not materialize, the actual figures may differ substantially from such estimates. Future developments and results are in fact dependent on a large number of factors; they contain different risks and imponderables and are based on assumptions that may not be accurate. We neither intend nor assume any obligation to update forward-looking statements on an ongoing basis as these are based exclusively on the circumstances prevailing on the date of publication.
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