Strategy for 2024–2027

During the strategy period 2024–2027, Loihde aims to grow faster than the market and achieve a significant improvement in profitability.

Loihde’s comprehensive service portfolio of security, data, digitalisation and cloud technologies is well aligned with global market trends, and the company has modelled its service areas around the client needs related to these.

Loihde consists of five complementary and interlinked service areas:

1) Data & AI
2) Cloud & Connect
3) Cyber
4) Digital Services
5) Security Solutions

To clarify the total offering, customer communication and employer brand, Loihde will start using a single, common Loihde brand, instead of the current network model with several sub-brands. Loihde will be organised into business units based on service areas and jointly produced support services.

Loihde will focus in particular on continuous services. The aim is for continuous services to grow faster than Loihde’s other offering and to represent 30% of revenue at the end of the strategy period.

“We operate in a very interesting and dynamic market. Security in both the physical and cyber world is an extremely topical issue, and the use of data is growing rapidly, driven by e.g. efforts in artificial intelligence. Companies are modernising their networks, more and more companies are looking to take advantage of cloud technologies, and the development of digital services is on the agenda of virtually every company. All this provides Loihde with plenty of opportunities to grow and benefit our clients,” says CEO Samu Konttinen.

Medium-term financial targets

In connection with the strategy update, Loihde’s Board of Directors has adopted the following updated, medium-term financial targets:

Growth
  • Annual revenue growth of approximately 10%, including both organic growth and acquisitions
  • The revenue target for the end of the strategy period, i.e. for 2027, is at least EUR 200 million.

 

Profitability
  • Adjusted EBITDA margin for the end of the strategy period, i.e. for 2027, 15%

 

Capital
  • Return on investment (ROI) above 10%
  • Net debt/EBITDA between 0–2x

Strategy for 2021–2024

Organic growth and improved profitability

Loihde aims to increase revenue and improve profitability in both of its business areas. The achievement of these goals is supported by the strong digitalisation trend in society, the robust growth of the cyber security market and the company’s strong market position in physical security. The company’s view is that digitality will break through in nearly all industries, the data-driven approach and the use of data in all business activities will increase in significance and, simultaneously, technologies will develop at a rapid rate. To keep abreast of this development, companies will take advantage of the expertise of partners such as Loihde.

We focus on the growth segments in digital development and the security market

In digital development, the company’s strategic focus is on growing service areas such as data analytics, service design, software development and cloud technology development projects. A major priority is also the controlled introduction of artificial intelligence as a part of digitalisation. A trend that has been evident in the market in recent years is companies aiming to establish customer relationships starting from the planning and design stages of digitalisation projects, as being able to sell one hour of design work typically means selling several hours of software development work. The Talent Base acquisition completed in spring 2021 takes Loihde in precisely this direction in the value chain.

In the security business, the company continues to develop cyber security and cloud transformation services in response to changing customer needs. Digitality and the significance of information security are also growing in physical security solutions, while analytics is creating new growth as increasingly advanced video surveillance and access control systems become more commonplace. Loihde continues to refine its unique One Security (Yksi Turvallisuus®) total security concept that covers both digital and physical security. The company is confident that it will strengthen its position as one of the strongest comprehensive service providers in physical security in Finland and aims to achieve market leadership in Finland.

Synergies through cooperation within the Group

During the past few years, the company has completed a number of acquisitions that have created the core of today’s Loihde. The acquired companies have operated as separate companies under several different brands. The company aims to develop and harmonise the Group’s operations, increase cross-selling and develop synergistic comprehensive solutions. One clear indication of the creation of a more coherent Group is the brand renewal implemented in 2021 that saw all of the Group companies moved under the common Loihde brand.

Accelerating growth through selected acquisitions

Loihde aims to continue to make focused acquisitions to support its selected direction of growth. The company’s strong balance sheet enables acquisitions that support its strategy.

Competent and committed personnel enable a high level of customer satisfaction. The company wants to be a highly sought-after workplace, where people thrive, develop as professionals and feel they are doing meaningful work each and every day. Loihde’s slogan “People first since 1882” refers both to the clients for whom we work and to the staff on whose skills the company is built.