Lamor updates its strategy and long-term financial targets
Lamor Corporation Plc Company release, inside information 22 November 2022 at 09:00 a.m. EET
Lamor updates its strategy and long-term financial targets
Lamor's Board of Directors has approved the updated strategy and the company’s long-term financial targets for the period 2023-2025.
Lamor’s environmental protection and material recycling solutions respond to the global megatrends
Lamor's operations are global, and the company’s business will be divided into three market areas, which are the Middle East and Africa, South and North America, and Europe and Asia.
Lamor's business consists of environmental protection and material recycling solutions. With its solutions and technologies, Lamor promotes circular economy, protection of biodiversity and careful use of scarce resources.
Cornerstones of the updated strategy
Lamor's strategy aims for long-term growth and a leading position in selected market areas and selected environmental service solutions. Lamor has recognised significant growth potential in all its market areas, but in this strategy period the company is focusing on achieving growth especially in the Middle East and South America.
Lamor has defined five main targets for the strategy period:
- To be the preferred partner in selected strategic markets, especially in the Middle East and South America.
- To enter three new markets to create a positive environmental impact.
- To win five new significant projects to strengthen local presence and to solve significant environmental challenges.
- To be part of solving the global plastics problem with a 100 kilotonne project portfolio of recycled plastics.
- To deliver efficient and effective solutions to customers with the globally local operating model.
"We have made significant growth investments during 2022 for example in our personnel, and we have identified a large number of potential new projects that will help us to significantly increase our business volume in the coming years. We can see that the customer behaviour is changing towards more sustainable business models, and the megatrends will further strengthen this change in the future. We believe that during the strategy period the growth potential is significant especially in the Middle East”, comments Mika Pirneskoski, CEO of Lamor.
Global partner network as a growth accelerator
The cornerstone of the strategy implementation is Lamor's unique globally operating local partner network. Supported by the network, Lamor can deliver the best know-how and technologies to the customers. In turn, working with local partners enables efficient scalability and compatibility with the local practices. This way of working enables a successful transition from project deliveries to ongoing local business operations and creates significant added value for the customer and partner network.
Long-term financial targets
Lamor's updated strategic targets focus on achieving growth and operational efficiency. To illustrate the target levels, Lamor’s Board of Directors has defined the following long-term financial targets for the company, which are pursued at the latest during the financial year following the strategy period 2023-2025:
- Growth: Increase of annual revenue to over EUR 250 million
- Profitability: Adjusted operating profit (EBIT) margin -% over 14 per cent.
- Capital structure: Achieving a capital structure suitable for the company’s strategy, targets and risk profile by maintaining a strong balance sheet.
Earlier in terms of growth, Lamor was aiming at increasing annualised revenue to over EUR 100 million as soon as possible, and after achieving this, growing annually significantly faster than the market. In terms of profitability, the company aimed at adjusted EBITDA margin -% of over 16 per cent and adjusted operating profit (EBIT) margin -% over 14 per cent. The company has decided to define the long-term profitability target as the adjusted operating profit (EBIT) % in the future, because it describes the actual profitability of the business better than the adjusted EBITDA %.
The defined long-term financial targets are not considered as market guidance for any year.
Lamor’s Board of Directors has not updated the company’s dividend policy. According to its dividend policy, the company aims to distribute annual dividends, while keeping growth as the company’s most important target.
Capital Markets Day
Lamor’s Capital Markets Day 2022 will be held on Tuesday 22 November 2022 at 2:00 – 4:30 p.m. EET.
At the event, Lamor's management will provide more information about the company's strategic focus areas and targets for the coming years. The event will be held in English and can be followed via a webcast at https://lamor.videosync.fi/cmd-2022/. The presentation materials will be available later on Lamor’s website at https://investors.lamor.com/reports-and-presentations/.
Certain statements in this company release are forward-looking statements based on management's opinion at the time they are made and involve risks and uncertainties. Forecasts may change in case of any significant changes in the general economic situation.
Mika Pirneskoski, CEO, Lamor Corporation Plc, tel. +358 40 757 2151
Danske Bank A/S, Finland Branch, tel. +358 50 590 7667
Lamor in brief
Lamor is one of the leading global providers of environmental solutions. Lamor provides its customers with equipment used for oil recovery, waste management and water treatment as well as versatile environmental solutions and services, such as clean-up and preparedness services related to oil spill response and oil spills, services for the treatment of waste and tailored and adapted water treatment solutions. Lamor operates together with its local partners, offering a wide selection of solutions, which can be tailored according to the needs of each customer, and aiming to clean the world, for which the company has worked since its incorporation. The company's share is listed on the Nasdaq First North Premier Growth Market Finland marketplace maintained by Nasdaq Helsinki under the trading code LAMOR. Further information: www.lamor.com
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