Financial goals
Addtech’s overriding goal is to achieve growth combined with profitability. The objective is earnings growth of at least 15 percent per annum over the course of a business cycle.
The target is for each individual unit to achieve a P/WC ratio (operating profit as a percentage of working capital) of at least 45 percent. The P/WC ratio encourages high operating profit and low levels of tied-up capital. When combined with the growth target of 15 percent, this provides good conditions for profitable Gowth.
Operating goals
The Addtech Group is to be the leader in value-adding technology trading and be perceived by our customers, suppliers and employees as the most competent and long-term partner.
STRATEGIES FOR PROFITABLE GROWTH
Profitable growth is achieved through continuous business and
organisational development. Addtech has three core strategies for reaching its goals:
Market-leading positions
Addtech sets out to be a market leader and build positions
in selected and well-defined niches with high knowledge and
technology content and where customers demand carefully
selected products, solutions and sub-systems often in small
and medium volumes. Market leadership is a critical factor for
achieving stable growth and sustainable profitability.
Operating mobility
Addtech is noted for its flexible organisational structure with quick-thinking and innovative employees who recognise new business opportunities. The Group seeks to capitalise on the growth potential of its subsidiaries and product areas by dividing or merging businesses either in whole or in part. Operating mobility involves having effective procedures in place for integrating new operations into the Group.
Acquisitions
Addtech works at all times to strengthen its operations through bolt-on acquisitions and by building and expanding its positions in chosen niches. Acquisitions are also made in new niches where the Group sees opportunities to become a market leader. The ability to apply the Group business model is vital to success in all acquisitions.