Opus revises its financial targets
The revised financial targets focus on growth, operating profit margin and the efficient use of capital.
Opus’ revised financial targets are in line with the expected continuation of profitable growth. The new targets are as follows:
- 5-10% annual revenue growth*
- 15% EBITA margin
- Net debt / EBITDA not to exceed 3.0**
*Organic and acquisitive growth based on 3-year CAGR
**Net Debt / EBITDA excluding IFRS16 effects. Net Debt / EBITDA may exceed 3.0 times if an attractive business opportunity arises
The revised financial targets include organic growth derived from underlying growth from existing business, as well as from program wins as they may occur, complemented by attractive bolt-on acquisitions. While continuing the growth of Opus, our operating profit target ensures focus on solid profit margins and capital returns of our combined businesses.
CEO Lothar Geilen stated “Opus will continue to drive profitable growth while considering our financial leverage, which includes applying less capital-intensive business models. By delivering on these objectives, we are convinced that Opus will further grow as a leader in the global vehicle inspection market and will continue its exciting journey in the intelligent vehicle support market.”
Gothenburg, April 15, 2019
Opus Group AB (publ)
This information is information that Opus Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on April 15, 2019.
For additional information, please contact:
Lothar Geilen, CEO
Tel: +46 31 748 34 00
Director of Corporate Communications & Investor Relations
Tel: +46 765 25 84 93
Opus is a technology-driven growth company in the vehicle inspection and intelligent vehicle support markets. The company has a strong focus on customer service and innovative technology within emission and safety testing and intelligent vehicle support. Opus had approximately SEK 2.5 billion in revenues in 2018 with solid operating profit and cash flow. Opus’ goal is to reach an annual revenue growth of 5-10 percent, through organic and acquisitive growth based on 3-year CAGR, and an EBITA margin of 15 percent. The majority of the growth is estimated to come from the international expansion of the vehicle inspection business, with a primary focus on the Latin American and Asian markets, and the expansion of the intelligent vehicle support business. With approximately 2,600 employees, Opus is headquartered in Gothenburg, Sweden. Opus has 34 regional offices, 24 of which are in the United States and the others in Sweden, Argentina, Chile, Mexico, Peru, Pakistan, United Kingdom, Spain and Australia. Opus has production facilities in the U.S. in Hartford, Ann Arbor and Tucson. The shares of Opus Group are listed on Nasdaq Stockholm.