Financial targets and outlook

Financial targets for the strategy period 2021–2024

Revenue: Loihde Group aims to achieve average annual revenue growth of more than 10 per cent, including potential acquisitions.

Profitability: The profitability target is an adjusted EBITDA margin in excess of 10 per cent, calculated in accordance with the IFRS standards. The Group has taken the decision to transition to IFRS-compliant reporting from the financial year 2022 on. The management estimates that the transition to IFRS reporting will increase the adjusted EBITDA margin by approximately 3–4 percentage points compared to the corresponding figure calculated in accordance with the FAS standards.*

*The difference of 3–4 percentage points, estimated by the management, between the adjusted EBITDA margins calculated in accordance with IFRS vs. FAS standards is mainly due to handling of leases in accordance with IFRS 16.

Outlook for 2022

In 2022, Loihde expects revenue from continuing operations in the security business to grow approximately 18% and revenue from continuing operations in digital development to grow more rapidly than in the previous year, or more than 13%. The Group’s adjusted EBITDA is estimated to improve compared to 2021, when it was EUR 4.3 million.