Financial Goals & Strategies

Financial goals

Stability and profitability constitute the basis foundations of Stille. Stille’s group-wide long-term financial goals consist of:

  • The average EBIT should exceed 17% in average over a five-year period.
  • Solidity must not be less than 40% over a five-year period.
Results from the past 5 years 2019 2018 2017 2016* 2015*
Net turnover (SEK million) 156.7 135.8 121.8 96,3 83.5
Growth in net turnover, % 15.4 11.5 26.5 15.4 2.5
EBIT, % 18.2 18.6 15.8 16.9 12.2
Solidity, % 63.4 74.9 77.2 77.5 70.5
*Not presented according IFRS 16 but in line with previous accounting principles           

Our growth targets consist of:

  • 10 percent organic growth.
  • Complementary acquisitions.

With this we aim to achieve a stable and long-term return to shareholders.

Strategies

We are working for growth partly through organic growth, partly through acquisitions that complement our existing product portfolio and market presence. This applies to both our business areas.

Among other things, the action plan includes:

  • Continued investments in product development.
  • Acquisitions of complementary operations and products.
  • Strengthened presence and organization in the USA.
  • Strengthened sales organization.
  • Identifying and developing additional distribution channels for our business area: surgical instrument products.
  • Market expansion together with our business area distributors of operating tables

Today, Stille is a strong brand name that is very well known and with a good reputation among surgeons all over the world. We must use and administer our brand name for continuing profitable growth.

Dividend

Stille’s policy is that the dividend is based on the group’s earnings trend and possibilities and its financial standing. The long-term goal is that the dividend must have a stable development and amount to 30–40 percent of results after tax.

Capital structure

Stille must have a proportion of equity that exceeds 40% of the balance sheet total. Bank financing may be needed for acquisitions or major investments. Shares can be issued in conjunction with large acquisitions.