Volati presents new financial targets

Volati’s Board has adopted new financial targets and an updated dividend policy, which replace the previous financial targets communicated in connection with the IPO in 2016. The strategic direction stands firm, but with the new targets, the Company wants to consolidate its strong long-term focus on value growth. 

Volati’s overall objective remains to generate long-term value growth by building an industrial group of profitable companies with solid cash flows and capacity for continuous development.

“Since Volati’s ordinary shares were listed on Nasdaq Stockholm in 2016, the Company’s net sales have more than doubled and EBITA has increased by 61 percent. The new financial targets clearly reflect our continuing ambition to grow, both through acquisitions and organically, while maintaining a strong balance sheet and a strong focus on creating long-term value for our shareholders,” says Volati CEO Mårten Andersson.

New financial targets
The Board has adopted the following long-term financial targets, which should be evaluated as a whole:

• EBITA growth: The target is average annual growth in EBITA per ordinary share of at least 15 percent over a business cycle.
• Return on adjusted equity: The long-term target is a return on adjusted equity* of 20 percent.
• Capital structure: The target is a net debt/adjusted EBITDA* ratio of 2 to 3 times as an average over the last four quarters, and not exceeding 3.5 times.

* See pages 130-131 of the 2018 Annual Report for definitions of alternative performance measures.

The Board has also defined an updated dividend policy:

• Volati will normally distribute 10–30 percent of the Company’s net profit attributable to the Parent Company’s shareholders. When determining dividends, net debt in relation to the Company’s targets is taken into account, together with future acquisition opportunities, scope for development in existing companies and other factors that Volati’s Board considers significant. Dividends on preference shares are issued at an annual amount of SEK 40.00 per preference share, in quarterly payments of SEK 10.00, in accordance with the Articles of Association.

This information is information that Volati 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 persons set out below, at 07.45 CET on 20 February 2020.

For further information, please contact:
Mårten Andersson, CEO Volati AB, +46 72 735 42 84, marten.andersson@volati.se
Andreas Stenbäck, CFO Volati AB, +46 70 889 09 60, andreas.stenback@volati.se

Volati AB (publ)
Engelbrektsplan 1, SE-114 34 Stockholm
Tel: +46 8 21 68 40, email: info@volati.se, corp.reg.no.: 556555-4317

About Volati
Volati is a Swedish industrial group, formed in 2003, organised in four business areas: Trading, Consumer, Akademibokhandeln and Industry. Volati mainly acquires reasonably valued companies with proven business models, leading market positions and strong cash flows and develops them with a focus on long-term value creation. The strategy is to build on the companies’ identity and entrepreneurial spirit, adding leadership, expertise, processes and financial resources. Volati has operations in 16 countries, over 2,000 employees and annual sales of approximately SEK 7 billion. Volati’s ordinary shares and preference shares are listed on Nasdaq Stockholm. Further information is available at www.volati.se.