VMP’s financial targets
VMP’s Board of Directors has set the following long-term financial targets.
- Growth: growth in net sales outpacing market growth.
- Profitability: adjusted EBITDA percentage of 10 percent.
- Leverage: the ratio of net debt to adjusted EBITDA is 1.5 times.
- Payment of dividends: the aim is to distribute as dividends 30 to 50 percent of annual net result, adjusted for depreciation of goodwill, as dividend to VMP’s shareholders*.
*The Company’s Board of Directors reviews the balance between the amount of dividend and the Company’s financial position, cash flow and growth investments, and based on this review, prepares a proposal on the amount of dividend to be distributed.
VMP’s future prospects:
VMP expects the adjusted EBITDA to grow clearly during the financial period ending December 31, 2018, compared to the financial period ended December 31, 2017.
The Company’s adjusted EBITDA was EUR 9.3 million for the financial period ended on December 31, 2017.
VMP’s profit forecast is based on the estimates and assumptions of the Company’s management on the development of the Company’s net sales, EBITDA and operating environment. The profit forecast is based on the increase of the volume of business operations as well as the growth from acquisitions made during 2017 and 2018. Organic growth is expected to develop favorably because of the improved economic situation.
VMP can influence the development of our EBITDA with a customer-oriented product and service offering, product development that meets the needs of the clients, cost control and by streamlining its operations.
Factors outside of VMP’s influence are mainly related to general economic development, development of the labor market, operations of its competitors and the legislation related to VMP’s operations which might affect the demand for services and the competitiveness of the Company. Also other industry and business operations related general risk factors are outside of VMP’s influence.