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NoHo Partners Plc
STOCK EXCHANGE RELEASE 11 JUNE 2021 at 9:00
NoHo Partners is updating its strategy and financial targets: seeking controlled growth and improved profitability in the strategy period 2022–2024
NoHo Partners Plc’s Board of Directors has approved the company’s strategy and financial targets for the strategy period 2022–2024.
The company’s vision is to be the leading restaurant company in Northern Europe. According to its values, the company focuses on entrepreneurship, quality, people, profitability and responsibility. The company will publish an ESG report on its operating principles on the basis of its values in 2022.
The financial targets for the strategy period 2022–2024:
The Group aims to achieve a turnover of approximately MEUR 400 and an EBIT margin of approximately 10 per cent during 2024.
At the same time, the aim of the company is for the ratio of net debt to operating cash flow, adjusted for IFRS 16 lease liability, to be under 3.
The objective of the company is to pay dividends during the strategy period.
The Group’s updated strategy focuses on:
Profitable growth in the Norwegian restaurant market through acquisitions
Scaling up the Friends & Brgrs chain to a national level
Large and profitable urban projects
Continuation of the cost-saving programme
Operational efficiency improvement
Implementation of the development programmes in Denmark
Strong future operating cash flow
Gradual divestment of Eezy Plc
Use of treasury shares in acquisitions
At this stage, the company will not issue a turnover and profitability guidance for 2021 due to the still uncertain operating environment. The management estimates that the turnover of NoHo Partners Group in 2022 will be approximately MEUR 280 with the current units and approximately MEUR 400 as a whole in 2024. It is estimated that approximately MEUR 50 of the expected growth of approximately MEUR 120 will come from Norway, approximately MEUR 30 from the scaling of Friends & Brgrs business operations, approximately MEUR 30 from large and profitable urban projects and approximately MEUR 10 from the Group’s other businesses.
The Chairman of NoHo Partners’ Board of Directors, Timo Laine:
“I would like to thank our staff and the company’s management for their battle through these exceptional times. NoHo Partners is and will be a growth company with the goal of controlled and profitable growth. In line with our updated strategy, we are returning to the growth path disrupted by the pandemic. While the market recovers, our strong cash flow and the gradual reduction of our holding in Eezy will enable growth as well as the achievement of the desired level of debt. In the future, we also want to take advantage of our opportunities to use our treasury shares in acquisitions and growth financing, especially in Norway. The company’s strengthening economic development will also allow us to start paying dividends again.”
NoHo Partners CEO Aku Vikström:
“This newly published strategy is also a turning point for our company; we will move from defensive actions to controlled rebuilding and back to the path of profitable growth. Although our competitiveness has been temporarily weakened during the crisis, we have tried to take care of our competitive advantages – people and culture. How well we have succeeded and will succeed in the future will ultimately determine how well the newly published strategy will be implemented.”
NoHo Partners is organising a strategy briefing at Tapahtumatalo Bank (Unioninkatu 20, 00130 Helsinki) today at 10 a.m., where it will tell more about its strategy and financial targets. The briefing is also available as a live webcast at https://noho.videosync.fi/2021-strategiainfo.
The speakers at the event are Timo Laine, Chairman of the Board of Directors of NoHo Partners, Aku Vikström, CEO, and Juha Helminen, Head of International Business.
The briefing will be held in Finnish and the presentation material will be in English. The recording of the briefing will be available on the company's website later on today.
Aku Vikström, CEO, NoHo Partners Plc, tel. +358 44 011 1989
Jarno Suominen, Deputy CEO, NoHo Partners Plc, tel. +358 40 721 5655
NoHo Partners Plc is a Finnish group established in 1996, specialising in restaurant services. The company, which was listed on NASDAQ Helsinki in 2013 and became the first Finnish listed restaurant company, has continued to grow strongly throughout its history. The Group companies include some 250 restaurants in Finland, Denmark and Norway. The well-known restaurant concepts of the company include Elite, Savoy, Teatteri, Stefan’s Steakhouse, Palace, Löyly, Hanko Sushi, Friends & Brgrs and Cock’s & Cows. Depending on the season, the Group employs approximately 2,100 people converted into full-time employees. The company’s vision is to be the leading restaurant company in Northern Europe. www.noho.fi