INC Group has reached over PLN 5 million of net profit in Q1 2020

In the first quarter of 2020, the INC Group generated PLN 5.3 million of net profit (PLN 4.993 million attributable to shareholders of the parent company). As previously announced, the Group focused on implementing projects for companies from the so-called new economy, and in March the Group updated its development strategy. Until the end of the second quarter, INC wants to carry out several projects to obtain financing, and by the end of the year to introduce at least 10 companies on the Warsaw Stock Exchange.

The goal of the new INC’s strategy is to become the national leader in comprehensive service for small and medium-sized companies seeking financing for development. One of the foundations of the INC’s development plan are diversified sources of income from advisory and transaction activities. The Group also plans to expand its operations outside Poland.

In the past quarter, the INC Group developed cooperation with Tar Heel Capital Pathfinder and companies from the PlayWay Group. In January, the Group successfully completed the issue of Skinwallet shares worth PLN 3.4 million. This is a consequence of the letter of intent signed in November 2019 with THC Pathfinder, thanks to which the INC Group will be the first choice entity in terms of obtaining financing or making the fund’s portfolio companies public. In the first quarter, INC also obtained funding for President Studio, and in recent weeks for Detalion Games. Both companies belong to the PlayWay Group, as well as Play2Chill, Madmind Studio and Punch Punk Games with which INC also began a cooperation.

– Importantly, we achieved operational and financial success despite the uncertain situation in global financial markets related to the coronavirus epidemic. We have proved that well-organized and attractive projects can find financing even in such unpredictable times. What also helped us was the growing interest in the stock market from individual investors, but only the appearance of new investors  will not change the situation of companies, you still need to be able to effectively reach target groups, which we do successfully. – adds Paweł Śliwiński.

At the turn of March and April, INC successfully obtained financing for genXone worth PLN 4.3 million. In turn, in April, hosted the fastest crowd fundraising  in history. In less than 30 minutes, investors subscribed for shares for over PLN 350 thousands. The value of the entire public offering was PLN 1.4 million.

– From the beginning of the year we are witnessing  a large bull market on the so-called small stock exchange. In April, turnover on NewConnect was higher than on sWIG80, and the value of turnover since the beginning of the year exceeds the annual turnover observed over the last decade. This is a long-awaited situation because the market marginalized in recent years is returning to favor. The recovery is particularly visible among companies from the so-called new economy, i.e. technology, gaming, biotechnology and photovoltaic companies. – says Paweł Śliwiński.

On the NewConnect market, in April investors generated PLN 1.09 billion of turnover . This is an increase of 1176 percent y/y. In the first four months of 2020, the value of turnover is almost PLN 2.5 billion. This is a higher value than the annual turnover on this market over the last decade.