SRV is a Finnish developer and innovator in the construction industry that builds business premises, housing and infrastructure. We are building a more sustainable and responsible urban environment. In our operations, we take the best interests of both the environment and people into consideration and account for economic wellbeing. We respond to the ongoing trends in our business environment, such as accelerating climate change, urban growth and high-density development, and faster digitalisation. SRV’s business uses a partnership model — construction work is procured from SRV’s partners and the variable costs involved truly are variable.
Why invest in SRV?
Sustainably profitable
Our aim is to build SRV into a sustainably profitable company. We steer our profitability by tapping into market opportunities and engaging in prudent risk management and selecting our projects carefully. We also proactively manage our risks by diversifying our portfolio geographically, by intended use and contract type, and by limiting the amount of capital tied up in projects.
Stable financial position and low risk levels
In 2019-2023, SRV successfully revitalised its balance sheet, developed leadership and boosted operational efficiency, and improved project risk management. Thanks to our healthy balance sheet, favourable risk position and low housing exposure, we will be able to start rapidly pursuing profitable growth when investor demand recovers.
Order backlog and controllability in good shape
We have a strong order backlog that is heavily focused on collaborative business premises contracting, in which the customer and SRV share the financial risk. The controllability of our projects is at a good level, which is reflected in occupational safety, customer satisfaction and achievement of budgeted margins.
Profitable growth through a strong portfolio of development and developer-contracting projects
Strategically, we pursue profitable growth by further bolstering our leading position in collaborative contracting, and at the same time we seek controlled growth in project types with a higher profitability, that is, development of business premises as well as development and developer-contracted housing construction projects. Our strong expertise in project development, the project candidates this produces, our extensive project development portfolio and our knowhow in transactions enable future growth.
Lifecycle wisdom and high-quality customer work are our competitive advantages
Lifecycle wisdom, i.e. construction that is sustainable from an environmental, human and financial perspective, is at the heart of SRV’s strategy. We have unique expertise in constructing lifecycle-wise buildings and have implemented many public-sector projects under the lifecycle model. In these lifecycle projects, we are responsible for the design and implementation of the property, and its maintenance and servicing for 20 years after completion. Our robust expertise in technical building services and energy lay the foundation for both lifecycle-wise construction and high-quality customer work.
Strategic objectives
SRV’s strategic objectives are to increase shareholder value, provide an excellent customer experience, be a desired employer and mitigate climate change. To ensure the achievement of our objectives, we focus on five strategic priorities: a portfolio that is optimised for market conditions and risk management, lifecycle-wise construction, customer work that produces value, efficiency and digitalisation, and corporate culture, people and expertise.
SRV aims to continuously optimise its portfolio for market conditions and risk management in order to reach its long-term financial objectives. We pursue profitable growth by increasing the share accounted for by housing construction and especially by housing and business premises construction based on in-house project development in a controlled manner, such that we will bolster our leading position in cooperative project management contracting and alliance projects as well as increase the share of revenue accounted for by housing construction to 30-40 per cent. We are also increasing the relative share of the portfolio accounted for by business premises based on in-house project development, residential development projects and residential developer contracting projects to 30–40 per cent of revenue.
Long-term financial objectives
SRV’s operations are guided by the following long-term financial objectives that it aims to achieve by the end of 2027:
- Operative operating profit of at least EUR 50 million
- Revenue > EUR 900 million
In line with its dividend policy, SRV’s objective is to distribute a dividend equalling 30-50 per cent of the annual result, while taking into account the outlook and capital needs of the company.
SRV as an investment
