Consti is updating its long-term financial targets
CONSTI GROUP PLC STOCK EXCHANGE RELEASE 7 FEBRUARY 2020, at 8.30 a.m.
Consti is updating its long-term financial targets
Consti’s Board of Directors has assessed the company’s current strategy and financial targets during the ongoing strategy period in light of the changes that have occurred in the market and competitive environment, as well as the development of Consti’s operations. As a result of the assessment the Board determined that the strategy is still valid. During the ongoing strategy period the strategy focus has been adjusted to match the company’s operational development especially by underlining the importance of Consti’s Profitable and Competitive Operations initiative and by renewing the group’s organisational structure.
Consti’s mission is to improve the value of the building stock and people's quality of life. Consti's vision is to be number one in renovation in Finland. To achieve its vision and goals, Consti has defined strategic initiatives which are advanced as strategic development projects. The strategic initiatives are: profitable and competitive operations, the best professionals, excellent services and solutions, the best customer experience and renewal and growth.
Long-term financial targets
Alongside strategy work Consti’s Board has renewed the company’s long-term financial targets. Net sales target is now tied to market growth. Long-term targets relating to profitability, cash flow and capital structure have remained unchanged.
”In order to accelerate the improvement of Consti’s performance and strategy implementation we have adjusted the company’s operations and resources during the ongoing strategy period. Through a group-wide turnaround program, that was carried out in 2019, we have created a more customer-oriented organisational structure which enables moving business leadership closer to production at our worksites and promotes the efficient organisation of internal services that support our business. We continue to strive for growth in all our business areas, but we believe that a more moderate growth objective better reflects our aspiration to build a foundation for sustainable profitability based on market growth and our strategic initiatives aiming at improving profitability”, says CEO Esa Korkeela.
Consti’s long-term financial targets are:
- Growth: net sales growing faster than the market (altered)
- Profitability: EBIT-margin exceeding 5 percent (unchanged)
- Cash flow: Cash conversion ratio exceeding 90 percent (unchanged)
- Capital structure: Net debt to adjusted EBITDA ratio of less than 2.5x (unchanged)
Consti’s dividend policy remains unchanged. Consti’s aim is to distribute at least 50% of its net profit as dividends annually.
CONSTI GROUP PLC
Further information:
Esa Korkeela, CEO, Consti Group Plc, Tel. 8
Joni Sorsanen, CFO, Consti Group Plc, Tel. 5
Distribution:
Nasdaq Helsinki Ltd.
Major media
Consti is a leading Finnish company concentrating on renovation and technical services. Consti offers comprehensive renovation and building technology services to housing companies, corporations, investors and the public sector in Finland’s growth centres. Company has four business areas: Housing Companies, Corporations, Public Sector and Building Technology. In 2019, Consti Group’s net sales amounted to 315 million euro. It employs approximately 1000 professionals in renovation construction and building technology.
Consti Group Plc is listed on Nasdaq Helsinki. The trading code is CONSTI.
