Tellusgruppen announces new financial targets focused on continued growth and strong profitability
Published: May 8, 2024
IR - Regulatory
Tellusgruppen Since its initial public offering in 2021, AB (publ.) has grown significantly and expanded its operations into several segments. The company is expected to reach revenue of over 500 MSEK in 2024. The Board of Directors has established new long-term financial targets. The company’s focus remains on stable and profitable growth, both organically and through acquisitions.
On May 7, the Board of Directors resolved that the Tellus Group’s long-term financial objective is to achieve, through both organic growth and acquisitions:
- 25 percent annual growth.
- An operating margin before depreciation and amortization (EBITDA margin) of at least 7 percent.
- Threshold ratio of net interest-bearing debt to adjusted EBITDA of 3.0.
Tellusgruppen continues to grow, but as the Group expands, maintaining the same absolute growth rate—in order to grow in a controlled and sustainable manner—will also result in a proportionally lower growth rate relative to revenue. Therefore, the Board of Directors has set a long-term annual growth target of 25 percent.
The profitability target remains unchanged. Tellusgruppen will continue to combine a high growth rate with strong profitability, the latter defined as significantly higher than the industry average.
The Tellus Group’s various business areas have different capital adequacy requirements. EBITDA relative to net interest-bearing debt is a well-established metric that is widely used across different business areas and remains relevant throughout an “acquisition cycle” when acquiring new companies. For Tellusgruppen , the Board of Directors has determined that an appropriate threshold for net interest-bearing debt to Adjusted EBITDA is 3.0.
“The new long-term financial goals set by the board are better suited to our business and our circumstances,” says CEO Bijan Fahimi.
This information is information that Tellusgruppen AB (publ) is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on May 8, 2024, at 8:00 a.m. CEST.
For more information, please contact:
Bijan Fahimi, CEO of Tellusgruppen AB
Email:bijan.fahimi@tellusgruppen.se
Phone: +46 707 167 453
Certified Adviser
Mangold Fondkommission AB
Phone: 08-503 015 50
Email:ca@mangold.se
About Tellusgruppen AB (publ)
Tellusgruppen is a long-term owner of well-managed companies in the education and child care sectors. The Group currently operates 27 preschools and seven elementary schools, and also provides child care and educational services. Tellusgruppen was founded in 2012 as the parent company of Tellusbarn (founded in 2007) and serves as a platform for future expansion in the education and childcare sectors. Its business model is to establish, operate, and develop profitable and growing subsidiaries that offer high-quality, innovative, and in-demand services within their respective fields.