This was stated in a press release.
Bergman & Beving will continue to apply a more stringent allocation of capital towards areas with high profitability, significant value creation and good growth prospects. Complementary new targets are to achieve an operating margin, ebit, of more than 10 percent by 2025/2026 and a return on operating margin, R/RK, of at least 45 percent by 2026/2027. Previous financial goals still stand. For companies that are not expected to reach the R/RK profitability target of at least 45 percent within 3-5 years, alternative structural solutions will be evaluated.
The company’s vision is to be the leading supplier of productive, safe and sustainable solutions to the construction and industrial sectors. The focus will be expanded on acquired companies, some examples being completed acquisitions in infrastructure, electronic testing equipment, mobile heating solutions and security products.
The group prioritizes earnings growth over volume growth with the aim of achieving EBIT growth of at least 15 percent per annum over the business cycle. The ambition is for parts of earnings growth to come from acquisitions of companies with gross earnings of SEK 50-80 million per year. The acquisitions will mainly target niche B2B technology companies that have their own products, especially in the Nordic countries and Great Britain.
“We will ensure that we allocate resources and capital to areas with the best returns. The majority of Bergman & Beving’s 28 companies already meet our profitability requirement for an R/RK of at least 45 percent. “We will act aggressively in companies that we do not see We will evaluate our role in companies where we see that the profitability goal will not be achieved within 3 to 5 years,” says CEO Magnus Söderlind.
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