Strategic financial objectives
The strategy and SRV’s entire operations are guided by the strategic financial objectives, updated in February 2017:
- During the strategy period, the company will seek to outpace industry growth using large-scale projects
- The operating profit margin will rise to more than 8 per cent by the end of the strategy period
- Return on equity will be at least 15 per cent by the end of the strategy period
- The return on investment will rise to at least 12 per cent by the end of the strategy period
- An equity ratio of over 35 per cent will be maintained
- A dividend payment equalling 30–50 per cent of the annual result, taking into account the capital needs of business operations.
The achievement of the objectives is based on weak but steady economic growth in Finland, and a slight recovery and stabilisation in Russia’s economy. In addition, achieving the objectives requires substantial growth in SRV’s developer-contracted
The effectiveness of financing is a critical factor for SRV’s solvency. The goal is to further improve the effectiveness of project financing. In addition to the right forms and sources of financing, also the timing of the projects are important. The return on capital will be increased by improving profitability via optimisation of the project portfolio. The rate of turnover of capital will be increased by broadening the financial shoulders.