Continued growth and strengthened margin
The long-term work of developing the Group in line with our prioritised strategies is based largely on the fact that we are active in a mature industry with limited potential for organic growth. Acquisition-based growth is therefore paramount in achieving the size needed to realise economies of scale in the business.
In parallel with growth, the efficiency of the business, measured as the adjusted operating margin, is a vital parameter in managing the day-to-day operations of the operating units.
Sales growth, %
Annual sales growth over a business cycle is to amount to 10 percent.
In 2019, sales growth amounted to 21 percent. Average
growth during the last five-year period totalled 9 percent.
Adjusted operating margin, %
The adjusted operating margin is to be at least 10 percent.
In 2019, the adjusted operating margin was 8.1 percent. The average for the last five-year period was 8.5 percent.
Dividend policy, percent of net profit after tax
Dividends are to amount to between 30 and 50 percent of net profit after tax with consideration given to the capital structure and acquisition plans.
For 2019, the dividend proposed by the Board amounted to 39 percent of net profit. The average for the last five-year period was 38 percent.
Return on operating capital, %*
The return on operating capital is to be at least 15 percent.
In 2019, the return on operating capital was 14.1 percent. Average annual growth during the last five-year period was 16.9 percent.
* Nederman Group applies the retroactive approach in relation to IFRS 16 Leases and the figures for 2018 were therefore restated pursuant to the new standard. For earlier financial years, IAS 17 Leases was applied in accordance with the accounting policies that applied through 2017.