Fourth quarter of 2020
Despite the pandemic, which continued to impact our end markets, trading in Q4 was relatively strong. Revenue came in at EUR 103.1 million, an increase of 12% compared with Q4 2019 (EUR 92.3 million) and 5% higher than in the traditionally stronger third quarter, when we posted Euro 98.6 million. Excluding the contribution of INTORQ, revenue decreased by 2%. This is a step-up from the organic revenue decrease of 16% we experienced in Q3 2020 and the 34% in Q2 2020. Exchange rates had a negative effect of 0.8% on consolidated revenue.
In the Automotive Group, activity levels continued to improve from the summer onwards, with year-over-year organic revenue decreasing by 5% compared to a decrease of 16% in Q3, and 44% in Q2. Revenue in the passenger car segments continued to increase, while revenue for coaches and trucks in the US remained well below pre-COVID-19 levels. Organic revenue of the Industrial activities increased by 5% compared with Q4 2019. Including INTORQ, revenue increased by 45%. China revenue increased 60% year-over-year including INTORQ and 7% organically, with all business units contributing to the increase.
Compared to full-year 2019, revenue decreased by 4% to EUR 396.4 million (2019: EUR 412.4 million). Excluding the revenue contribution of INTORQ, revenue decreased by 17%. Exchange rates had a slight negative effect of 0.3% on consolidated revenue in 2020.
Revenue in our Automotive activities declined by 20%, impacted by an estimated 16% reduction in the global production of passenger cars and a slowdown in the truck and bus markets, especially in Europe and the US. Industrial activities grew by 24%. including a EUR 54.0 million revenue contribution from INTORQ. Excluding INTORQ, Industrial revenue declined 11%. Despite the COVID-19 impact in the first quarter, organic revenue in China increased by 5% in 2020. In 2020, China represented 12% of group revenue. Revenue of our European and US customers decreased by 18% and 24% respectively.
Fourth quarter of 2020
The normalised operating result before depreciation and amortisation (EBITDA) increased significantly by 58% to EUR 11.4 million (Q4 2019: EUR 7.2 million) and the EBITDA margin rose to 11.1% (Q4 2019: 7.8%). We attribute this strong profitability to higher activity levels combined with INTORQ’s contribution and continued cost control.
Total personnel costs and other operating expenses decreased on an organic basis by EUR 2.3 million or 6%, following cost control and structural cost measures. Profitability in our Industrial and Automotive activities developed favourably compared to the previous quarters, and profitability in our Industrial activities also improved year-over-year.
Normalised EBITA amounted to EUR 4.9 million (2019: EUR 1.2 million).
Normalised EBITDA for the full-year 2020 increased by 2% to EUR 44.6 million (2019: EUR 43.8 million). The normalised EBITDA margin increased from 10.6% in 2019 to 11.3% in 2020. Normalised EBITA for the year ended up at EUR 18.9 million slightly lower than 2019 (EUR 19.8 million). The added value as a percentage of the production value increased by 1.1% as a consequence of the higher revenue share of our Industrial activities. On an EBITDA level, the improved added value margin, and the EUR 19.6 million lower organic staff and other operating costs more than offset the revenue decline.
Normalised net finance costs increased to EUR 3.5 million (2019: EUR 2.5 million) mainly due to the additional debt taken on to fund the acquisition of INTORQ and EUR 0.3 million unfavourable currency results. Reported finance expenses were EUR 4.1 million and include EUR 0.6 million additional accrued interest on the expected outcome of German tax audits covering 2010 to 2014 and the expected impact on subsequent years.
The normalised income tax expense amounted to EUR 2.3 million (2019: EUR 3.8 million). The normalised effective income tax rate for 2020 came to 22.0% (2019: 26.1%), positively impacted by previously unrecognised carry forward tax losses. The reported tax rate in 2020 came to 24.6% (25.0% in 2019).
Normalised net profit before amortisation of intangibles arising from acquisitions in 2020 decreased to EUR 11.7 million (2019: EUR 12.6 million). Normalised basic earnings per share amounted to EUR 0.79 (2019: EUR 0.94). Reported net profit was EUR 4.3 million (2019: EUR 8.3 million) and includes EUR 4.1 million (2019: EUR 2.7 million) one-off costs that have been normalised in the results and EUR 3.3 million (2019: EUR 1.6 million) net of tax amortisation of intangibles arising from acquisitions.