Financial goals
Up to 2024 Ambition
Based on the results realised in the period 2010-2015, we drafted our 2020 ambition, which was revenue of approx. DKK 2 billion and an EBITDA margin in the range of 14-15% in 2020. Profit before tax should reach 8-10% of revenue up from the 6.1% realised in 2015.
With the results in 2018 (revenue of DKK 2.0 billion, an EBITDA margin of 14.5% and profit before tax of 10.2% of revenue), we had met our 2020 goals as soon as in 2018. Therefore, we launched our 2022 ambition. The low growth rates in 2018 and 2019 and the coronavirus outbreak in 2020 delayed the realisation of our ambitions. We thought that we would be delayed by 2 years and renamed our 2022 ambitions to 2024 ambitions, primarily due to the coronavirus outbreak.
"Up to 2024, it is our ambition to generate revenue in the range of DKK 3.3-4.0 billion through continued customer focus and organic growth combined with acquisitions ("buy and build" strategy, preferably companies with own products and trademarks).
By increasing the share of own products in total sales from the current 23.8% to 28-30% in 2024, continuing the internationalisation and increasing
efficiency further as well as by making massive investments in new technologies and people, it is our ambition to improve the EBITDA margin to 16-19% by 2024 (or more) and increase profit before tax to 10-12% of revenue, as the share of own products and advanced solutions is expected to increase more relative to the rest of revenue.
In respect of subsupplier tasks, the goal is still to generate profit before tax corresponding to 5% of revenue. It is therefore our ambition to increase profit before tax to approx. DKK 400 million by 2024 (12% of DKK 3.3 billion). This assumes that the markets we operate in are generally well-working and that acquisition opportunities at fair prices are available."
We have built an organisation that has the skills and the capacity to deliver on our 2024 Ambition in 2024. However, it is doubtful whether we will be able to obtain the orders required. So far, we have increased the top line, but less than desired, we have increased the EBITDA margin, and we
have increased the equity ratio.
We still have the ambitions and conclude on the "2024 Ambition" in a year.
It is Management's goal to realise a ratio of net interest-bearing debt to EBITDA of 2-3.5 and to maintain this level. This goal leaves room for more activities than planned. SP Group will continue to reduce its net interestbearing debt by strengthening cash flows from operating activities and by selling non-value-creating assets in order to release capital.
The equity ratio (including non-controlling interests' share of equity) will be maintained at 25-45%. Should the equity ratio decrease due to a higher level of activity, the Company will consider asking the shareholders for additional capital. If, on the other hand, the equity ratio increases, any excess capital is expected to be transferred back to the shareholders unless it is in the interest of the Company to increase the equity ratio.
SP Group aims at providing its shareholders with a fair return through increases in the share price. It is the ambition that earnings per share (EPS) should increase by an average of 20% annually over a five-year period.
In recent years, dividends distributed have totalled 15-20% of the profit after tax. Every year before the annual general meeting, Management assesses whether the level is adequate. The proposed dividend for 2023 corresponds to 23.5% of profit after tax.
