SRV GROUP PLC STOCK EXCHANGE RELEASE 3 DECEMBER 2018 16.45 EET
SRV Group Plc to change its segment reporting and renew Corporate Executive Team
SRV Group Plc will introduce new reporting segments. As of 1 January 2019, SRV will report on two business areas: Construction and Investments. SRV’s current reporting segments are Operations in Finland, International Operations, and Other Operations. A new business area, Investments, will largely be formed from the operations currently classified as International Operations, while business operations now reported under Other Operations will primarily be transferred to Construction. The segment change does not entail personnel reduction needs. In the same context, the composition of the SRV Corporate Executive Team is renewed.
“We believe that the new segments will result in sharper leadership, enhance capital management, and increase transparency in SRV. In Construction, we are focusing on efficient project management and implementation, as well as high-quality construction and an excellent customer experience. We are bringing all of our property investment expertise together under Investments. This will improve our competitive position in changing market conditions,” says CEO Juha Pekka Ojala.
Construction business area comprises all construction business as well as the capital and plots required for developer-contracted housing production. Housing construction, business construction, technical departments, procurement, and internal services are part of the Construction business area. As of 1 January 2019, M.Sc. (Eng.) Juha Toimela has been appointed Senior Vice President, Construction. Toimela is currently heading Operations in Finland. The annual revenue of the Construction business is approximately EUR 1 billion and capital employed amounted to EUR 337 million at the end of September 2018. Construction employs approximately 900 people, which is most of the SRV’s employees.
Investments business area consists of both complete and incomplete properties and sites in which SRV is a long-term investor. Plots that SRV will develop itself, and whose expected profits will be generated through development, will also be reported on under Investments. The segment focuses on the management and realisation of the group’s real estate investments and the creation and ownership of new collective investment structures.
Initially, the capital employed of the Investments business area is EUR 330 million. It includes SRV’s ownership in the shopping centres in both Finland and Russia and the Tampere Central Deck and Arena project. In addition, the portfolio includes land and smaller holdings in the office and logistics real estates in St. Petersburg and Moscow. The Investments segment will employ about 140 people, of which most work in the shopping centre management and in SRV Russia and SRV Estonia. As of 1 January 2019, M.Sc. (Econ.) Jarkko Rantala has been appointed Senior Vice President, Investments. Rantala has held various finance and real estate development roles in SRV since 2012. Veli-Matti Kullas continues to be in charge of operations in Russia and Estonia and shopping centre management. Kullas will report to CEO Juha Pekka Ojala.
SRV group services comprise the following functions in the new structure: project development, finance, HR, legal, communications and marketing and business development.
SRV first-quarter 2019 interim report will follow the new segment structure and SRV is planning to publish comparison figures in March.
SRV Corporate Executive Team as of 1 January 2019
In the same context, the composition of the SRV Corporate Executive Team changes. Veli-Matti Kullas, Senior Vice President, International Operations, and Pirjo Ahanen, Senior Vice President Human Resources, will step down from the Executive Team.
SRV Corporate Executive Team as of 1 January 2019:
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