GOFORE PLC COMPANY ANNOUNCEMENT 16 DECEMBER 2020 AT 16.52
Gofore updates its strategy and long-term financial targets and makes changes to the composition and responsibilities of the Group Executive Team
Gofore Plc's Board of Directors has approved the company's updated strategy for 2021–2023 and long-term financial targets. In order to support the execution of its updated strategy, Gofore will make changes to the composition and responsibilities of its Group Executive Team as of 1 January 2021.
Gofore's vision is to be one of the most significant digital transformation consultancies in Europe. In line with this vision, Gofore is constantly striving to be:
1. Growing and profitable
2. Impactful and responsible
4. Constantly renewing
5. Offering exceptional customer and employee experience
Gofore strengthens its position as an agile and culturally strong, continuously evolving top expert organisation. Gofore prides itself on its positive impact on society and believes that the value-based responsibility shared among its employees will help in the pursuit of sustainable success.
Gofore strives for growth in all its operating areas and customer segments. The advancement of digitalisation in society and within businesses means that in addition to leveraging cutting-edge technology, customers must have the ability to implement change in their business, organisation, and practices. Gofore aims to differentiate itself from its competitors by serving its customers extensively as a partner in agile digital transformation. The company provides expert services for holistic transformation, including digital transformation consulting, service design, digital service development, and digital quality assurance.
Strategic Growth Avenues
Business growth is pursued in three areas: continued growth in Finland, growth in international markets and growth through acquisitions.
1. Continued growth in Finland
In the public sector in Finland, Gofore aims to continue developing into a leading provider of expert services for digital transformation and further strengthening its strong position. Finland is one of the world's leading countries in public digital services, and significant investments in the development of digital services are expected to continue.
Gofore strives to support its public sector customers with its extensive and continuously evolving expertise and service offering. Gofore strives to develop its service capabilities to be the most attractive provider of major public sector development projects, providing exceptional customer experience and success stories.
In the private sector, Gofore aims to strengthen its position as a digitalisation service provider. The aim is to grow and develop into a significant partner for companies that develop their business through digital services and better use of data. Gofore's strengths are its versatile, extensive experience gained in large-scale and demanding public sector transformation projects, an agile and efficient operating model and a strong company culture. Through its expertise and commitment, Gofore strives to deliver success to its customers and this way grow into one of the most significant companies serving the private sector in providing digital transformation services.
Gofore expects demand for digital transformation expert services in Finland to remain good among public and private sector customers. This supports Gofore to continue its growth outpacing the overall growth rate of the Finnish IT service market.
2. Growth in international markets
Gofore aims to continue its international growth by leveraging its flexible, scalable and location-independent service platform and by differentiating itself as an agile, technology-independent expert partner in digital transformation.
Gofore of the future is an international and diverse company that is able to serve its large international customers in the best possible way. International business is directed to both the public and private sector IT service markets.
Gofore actively seeks possibilities to acquire internationally operating private and public sector customers that the company is able to serve with its current strengths and existing resources location independently.
The company has identified Germany as an attractive growth market in which it wants to increase its presence both through organic actions and acquisitions. Germany has a large industrial manufacturing sector where the company can take advantage of its existing industry experience to serve its customers. In Germany, Gofore has an established business and offices in Munich and Brunswick. Sales and customer relationship development in the German-speaking market are carried out by the local organisation.
The aim is to achieve international growth at the same pace as the Group's net sales growth.
3. Growth through acquisitions
As part of its growth, Gofore aims to make acquisitions that support its strategy. Gofore has an excellent track-record in acquisitions during 2017–2020: acquisitions have improved the company's expertise and ability to serve its customers, and increased shareholder value. Gofore continues to develop its capabilities to make successful acquisitions.
In the coming years, approximately half of the growth will be targeted through business and company acquisitions that are well suited to Gofore's business model and culture. Through acquisitions Gofore aims to achieve expertise that supports its strategy, expand its customer base or strengthen its geographical position, while simultaneously ensuring synergies.
Long-term financial targets
As part of the strategy update, Gofore's Board of Directors has also confirmed the company’s updated long-term financial targets.
Gofore aims for more than 20% annual net sales growth, of which organic growth accounts for approximately half. In terms of profitability, Gofore aims for an adjusted EBITA of 15%. The long-term financial target is in accordance with the International Financial Reporting Standards (IFRS).
The Gofore Group's business is divided into three main business areas: Digital Transformation (Gofore Lead), Digital Services Development (Gofore Create) and Digital Quality Assurance (Qentinel Finland). The German business is organised into its own company, Gofore Germany GmbH.
The Group's sales and account management are responsible for joint accounts. The Group is also responsible for joint brand and marketing. Business growth is supported by a common growth platform that provides digital solutions and business support services.
Composition and responsibilities of the Group Executive Team
To support in the execution of the updated strategy, the responsibilities and composition of the Group Executive Team have been updated. The Group Executive Team from 1 January 2021 is:
Mikael Nylund, CEO
Teppo Talvinko, CFO
Juha Virtanen, Director, Sales and Customer Value
Petra Sievinen, Director, Marketing and Communications
Aki Koikkalainen, Director, Digital Services Development
Elja Kirjavainen, Director, Digital Transformation and MD, Gofore Lead Oy
Miika Nurminen, Director, Digital Quality Assurance and MD, Qentinel Finland Oy (new as of 1 January 2021)
Terhi Vesanen, Director, Growth Platform and Digitalisation
Sanna Hildén, Director, People Operations (new as of 1 January 2021)
Kalle Mäki, General Counsel (new as of 1 January 2021)
With the change, Kristiina Härkönen, Chief Sustainability Officer, will continue in her position but will leave the Group Executive Team as of 1 January 2021.
Capital Markets Day on 14 January 2021
Gofore will present its updated strategy in Capital Markets Day on 14 January 2021. The invitation to the event will be published separately today.
Mikael Nylund, CEO, Gofore Plc
tel. +358 40 540 2280
Certified Adviser: Evli Bank Plc, tel. +358 40 579 6210
Gofore Plc is a Finland-based digitalisation specialist with international growth plans. Together with our customers, we are pioneering an ethical digital world. We're made up of over 700 impact-driven people across Finland, Germany, Spain and Estonia – top experts in our industry who are our company's heart, brain, and hands. We use consulting, coding and design as tools to incite positive change. We care for our people, our customers, and the surrounding world. Our values guide our business: Gofore is a great workplace that thrives on customer success. In 2019, our net sales amounted to EUR 64.1 million. Gofore Plc's shares are quoted in the Nasdaq First North Growth Market Finland. Learn more: www.gofore.com.