Alcadon Group decides on new financial targets
The Board of Directors of Alcadon has decided on new financial targets for Alcadon Group. The new financial targets will contribute to Alcadon Group's vision of becoming a leading competence partner in Europe in the digitalisation of society.
Financial targets
· Profitability – Alcadon Group shall reach and maintain a profitability level of 50 per cent, P/WC
· Profit growth – Alcadon Group shall generate an average profit growth of at least 10 per cent per year over time
· Profit margin – Alcadon Group shall improve profit margin striving towards 10 per cent
· Indebtedness – Alcadon Group shall operate with an indebtedness ratio below 3
Our targets shall be reached through both organic improvements and acquisitions of sustainable and profitable companies, always with shareholder value creation in focus.
Other supporting targets
· Customer loyalty – Net Promoter Score exceeding 30
· Employee engagement – Employee Net Promoter Score exceeding 30
Definitions
Profitability – Measured as Profit (P) divided by Working Capital (WC). Profit is defined as Adjusted EBITA R12 proforma. Working Capital is defined as outgoing balance of Inventory plus Accounts Receivables less Accounts Payables.
Profit growth – Measured as average annual adjusted EBITA growth where growth can be generated through both organic growth and acquisitions.
Profit margin – Measured as adjusted EBITA margin.
Indebtedness – Measured as Net interest-bearing dept excluding lease liabilities divided by Adjusted EBITDA R12 proforma with lease costs added back.
Customer loyalty – Measured by the Net Promoter Score (NPS) which provides a measure of how willing customers are to recommend Alcadon. NPS is measured by customers rating Alcadon on a scale of 1-10, where the number of ambassadors is then compared to the number of critics. Ambassadors are considered to be all those who answered between 9-10 while critics are considered to be all those who answered between 1-6.
Employee engagement – measured by the Employee Net Promoter Score (eNPS) which provides a measure of how willing employees are to recommend their workplace. Employees rank Alcadon on a scale of 1-10, with the number of ambassadors then set against the number of critics. Ambassadors are all those who answered between 9-10, while critics are all those who answered between 1-6.
