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NoHo Partners Plc
EXCHANGE ON JUNE 11, 2021 at 9:00 a.m.
NoHo Partners updates its strategic and financial objectives: search for controlled growth and better profitability over the 2022-2024 strategic period
The board of directors of NoHo Partners Plc has approved the company’s financial strategy and objectives for the strategic period 2022-2024.
The company’s vision is to be the leader in catering in Northern Europe. In accordance with its values, the company emphasizes entrepreneurship, quality, people, profitability and responsibility. The company will publish an ESG report on its operating principles based on its values in 2022.
Financial objectives for the 2022-2024 strategic period:
- The Group aims to achieve a turnover of around 400 million euros and an EBIT margin of around 10% in 2024.
- At the same time, the company’s objective is for the net debt to operating cash flow ratio, restated for IFRS 16 rental debt, to be less than 3.
- The company’s objective is to pay dividends during the strategy period.
The Group’s updated strategy focuses on:
- Profitable growth of the Norwegian catering market through acquisitions
- Deployment of the Friends & Brgrs channel at national level
- Large profitable urban projects
- Continuation of the cost reduction program
- Improved operational efficiency
- Portfolio development
- Implementation of development programs in Denmark
- Strong future operating cash flow
- Gradual sale of Eezy Plc
- Use of own shares in acquisitions
At this stage, the company will not issue a revenue and profitability forecast for 2021 due to the still uncertain operating environment. Management estimates that NoHo Partners Group’s turnover in 2022 will be around 280 MEUR with current units and around 400 MEUR as a whole in 2024. It is estimated that around 50 MEUR of the expected growth of around 120 MEUR will come from Norway. , around EUR 30 million from the scaling up of Friends & Brgrs’ business operations, around EUR 30 million from large profitable urban projects and around EUR 10 million from other Group activities.
The Chairman of the Board of Directors of NoHo Partners, Timo Laine:
“I would like to thank our employees and the management of the company for their fight through these exceptional times. NoHo Partners is and will be a growth company with the objective of controlled and profitable growth. In accordance with our updated strategy, we are returning to the path of growth disrupted by the pandemic. As the market recovers, our solid cash flow and the gradual reduction of our stake in Eezy will allow growth as well as the achievement of the desired level of debt. In the future, we also want to take advantage of our opportunities to use our own shares in acquisitions and growth financing, especially in Norway. Strengthening the economic development of the company will also allow us to start paying dividends again.
CEO of NoHo Partners Aku Vikstrom:
“This new published strategy is also a turning point for our company; we will move from defensive actions to controlled reconstruction and return to the path of profitable growth. Although our competitiveness was temporarily weakened during the crisis, we have tried to take care of our competitive advantages – people and culture. How successful we have been and how successful we will be in the future will ultimately determine to what extent the new published strategy is implemented. “
NoHo Partners is hosting a strategic briefing at Tapahtumatalo Bank (Unioninkatu 20, 00130 Helsinki) today at 10 a.m., where he will tell more about his strategy and financial goals. The briefing is also available as a live webcast at https://noho.videosync.fi/2021-strategiainfo.
Speakers at the event are Timo Laine, Chairman of the Board of Directors of NoHo Partners, Aku Vikström, CEO, and Juha Helminen, Head of International Affairs.
The briefing will be held in Finnish and the presentation material will be in English. The recording of the briefing will be available on the company’s website later today.
Aku Vikström, CEO, NoHo Partners Plc, tel. +358 44 011 1989
Jarno Suominen, Deputy Managing Director, NoHo Partners Plc, tel. +358 40 721 5655
NoHo Partners Plc is a Finnish group created in 1996, specializing in catering services. The company, which was listed on NASDAQ Helsinki in 2013 and became Finland’s first listed restaurant company, has continued to grow strongly throughout its history. Group companies include some 250 restaurants in Finland, Denmark and Norway. The company’s well-known catering concepts include Elite, Savoy, Teatteri, Stefan’s Steakhouse, Palace, Löyly, Hanko Sushi, Friends & Brgrs and Cock’s & Cows. Depending on the season, the Group employs around 2,100 people who are converted into full-time employees. The company’s vision is to be the leader in catering in Northern Europe. www.noho.fi