Long-term financial objectives
Considering the competitive situation of the Baltic construction and real estate market and the overall low interest rate environment, as well as the group’s high equity base, the strategy and financial objectives are focused towards improving the return on invested capital and on increasing the efficiency of the balance sheet.
The long-term financial objectives of AS Merko Ehitus are:
- return on equity (ROE) at least 10%
- dividend rate 50-70% of annual profit
- equity ratio at least 40%
In 2018, the group fulfilled all set financial objectives: the group’s return on equity was 15.3% (2017: 11.9%) and the equity ratio 48.9% (2017: 47.0%). The solid results of 2018 can be attributed to the contributions and professionalism of our employees; also, we are grateful to our customers and partners who have put their trust in us. Considering the high equity and modest debt level of the group, the planned dividend rate for 2018 is 92% (2017: 120%).