Cramo announces new financial targets and 'best in town' strategy
By Murray Pollok03 September 2010
Cramo has renewed its strategic and financial targets for the next three years, with the cornerstone of the strategy being the aim to become "best in town" in each of its key market areas.
The company has also adopted new financial targets for the 2010-13 period and these include generating 10% annual revenue growth, 15% EBITA margin and greater than 15% return on equity (ROE). Cramo said it hoped to achieve these targets as soon as possible within the period.
The strategy was announced during the company's annual Capital Markets Day for analysts and institutional investors in Helsinki on 1 September.
The company said it wanted to be the "best" rental companies in every town, city, district or region in which it operated. It will undertake a ranking of current locations and create action plans for each depot "to address gaps in market position or profitability".
Cramo said this analysis could lead to depot expansions, a change of the rental model (for example, franchising, a "web shop" or cross-border cooperation) or even depot closures.
The target is for Cramo to grow profitably faster than the market and for the company to remain a driver of rental development in new markets.
For the coming year, the aim is to increase prices and time utilisation. Cramo said its current fleet enabled increased sales of between €60 to €115 million.
In addition, the company said it will push what it called ‘Cramo Concept', driving the development of new rental concepts, such as low energy site buildings, 24 hour service, a ‘Flexi' tool rental concept and insurance.