Espoo, Finland, 2015-08-06 07:29 CEST (GLOBE NEWSWIRE) -- SRV GROUP PLC STOCK EXCHANGE RELEASE 6 AUGUST 2015, AT 8:29 AM
SRV updates its strategic objectives
At its meeting on 5 August 2015, SRV's Board of Directors decided to update the company's strategic objectives for 2015–2019.
According to the new objectives, SRV aims to increase its operating profit margin to over 8 per cent by the end of the strategy period, instead of the earlier announced target of 6 per cent. The target for return on equity remains unchanged at no less than 15 per cent, but in the revised objectives the company intends to achieve it by the end of the strategy period. SRV seeks to increase the return on investment of International Operations to at least 15 per cent by the end of the strategy period. The earlier objective was to increase the average annual revenue of International Operations to about EUR 100 million. The new objective for the dividend payment is 30–50 per cent of the annual result, taking into account the capital needs of business operations, instead of the earlier announced figure of 30 per cent.
The achievement of the set strategic objectives is based on weak but steady economic growth in Finland and Russia’s economy stabilizing at its current level. In addition, substantial growth in SRV’s developer-contracted projects is required.
“Our operating environment changed in the first half of the year, especially in Russia. Although our ongoing projects in Russia are progressing well and in line with plans, general uncertainty in the country unavoidably impacts on our objectives for the next few years. On the other hand, we are in a better position to improve our earnings performance in the near future thanks to our ongoing large-scale projects in Finland – such as REDI in Kalasatama, Niittykumpu metro centre and yesterday announced Fennovoima nuclear power plant project – and our record-high order books. SRV can always be counted on to pay steady dividends, and our updated financial objectives are directly evident in our new target for dividend payments,” says Juha Pekka Ojala, President & CEO.
SRV published its strategic objectives for 2015–2019 in February 2014. This update focused primarily on financial objectives.
Further information:
Juha Pekka Ojala, President & CEO, tel. +358 (0)40 733 4173
Ilkka Pitkänen, CFO, tel. +358 (0)40 667 0906
Päivi Kauhanen, Vice President, Communications, tel. +358 (0)50 598 9560