Loihde updates its strategy, mid-term financial targets and dividend policy
13.11.2023 15:01:01 EET | Loihde Oyj | Company Announcement
Loihde Plc's Board of Directors has today approved the company's updated strategy and mid-term financial targets for the period 2024–2027. In addition, the Board has updated the company's dividend policy.
Loihde's comprehensive service portfolio of security, data, digitalisation and cloud technologies is well aligned with global market trends, and the company has modelled its service areas around the client needs related to these.
In the coming strategy period, Loihde aims to grow faster than the market and achieve a significant improvement in profitability. Loihde will form five complementary and interlinked service areas:
1) Data & AI
2) Cloud & Connect
3) Cyber
4) Digital Services
5) Security Solutions
"These five service areas enable both well-focused service development and customer orientation as well as a unique total offering with the ability to combine different areas of expertise according to client needs," says CEO Samu Konttinen.
To clarify the total offering, customer communication and employer brand, Loihde will start using a single, common Loihde brand, instead of the current network model with several sub-brands and organizes itself in business units in accordance with the service areas and in common support functions.
Loihde will focus in particular on continuous services. The aim is for continuous services to grow faster than Loihde’s other offering and to represent 30% of revenue at the end of the strategy period.
"We operate in a very interesting and dynamic market. Security in both the physical and cyber world is an extremely topical issue, and the use of data is growing rapidly, driven by e.g. efforts in artificial intelligence. Companies are modernising their networks, more and more companies are looking to take advantage of cloud technologies, and the development of digital services is on the agenda of virtually every company. All this provides Loihde with plenty of opportunities to grow and benefit our clients," says CEO Samu Konttinen.
Mid-term financial targets
In connection with the strategy update, Loihde's Board of Directors has adopted the following updated, mid-term financial targets:
Growth
- Annual revenue growth of approximately 10%, including both organic growth and acquisitions
- The revenue target for the end of the strategy period, i.e. for 2027, is at least EUR 200 million.
Profitability
- Adjusted EBITDA margin for the end of the strategy period, i.e. for 2027, 15%
Capital
- Return on investment (ROI) above 10%
- Net debt/EBITDA between 0–2x
Dividend policy
Loihde aims to annually pay a dividend of at least 50 per cent of the Group’s profit for the financial year. The company will assess the conditions for the distribution of dividends annually, taking into account the company’s financial position, the achievement of growth and development targets and the investments necessary for that purpose as well as other material factors influencing the distribution of dividends.
Capital Markets Day
On Thursday, 16 November 2023, Loihde will host a Capital Markets Day, where the company will provide in-depth information on its new strategy and business.
The Capital Markets Day webcast will start at 9:00 a.m. and can be followed at https://loihde.videosync.fi/cmd-2023, where viewers can also register for the webcast. The presentations will be held in Finnish and the presentation material will be in English.
Materials from the presentations and a recording of the event will be available after the event on Loihde’s website at:
https://www.loihde.com/en/for-shareholders-2/reports-and-presentations/.
Further information
CEO Samu Konttinen
Media contact: Director of Communications Tiina Nieminen, tel. +358 44 411 3480 or tiina.nieminen@loihde.com
Certified Adviser Aktia Alexander Corporate Finance Oy, tel. +358 50 520 4098
Loihde enables business continuity. We help our customers to gain a sustainable competitive edge through data, AI and digitalisation, to harness the potential of the cloud and to protect themselves against both physical and cyber threats. The combining of these skills is what makes Loihde a unique and comprehensive partner. We are nearly 900 skilled professionals, and our revenue in 2022 amounted to EUR 123.0 million.