Finland-based rental company Cramo has outlined a new four-year financial plan, as it aims to lead and shape the development within its industry.
The company – which recently announced a year-on-year rise in its revenues of 6.6% to €712.3 million in 2016 – has created the Shape & Share strategy, which it said included capturing each market segment’s potential as well as optimising synergies within the group.
The company said it would separate equipment rental and modular space into two sectors, while aiming to make them more autonomous businesses to improve its efficiency with demand. It added that it would focus on selected markets in which the company was striving for a leading position, and wanted to take a more customer-oriented approach. It also said it would develop a digital strategy in order to capture the change in its customers’ behaviour and requirements.
Cramo also laid out a number of financial targets over the next four years, which included aiming for double-digit growth in its modular space sector and achieving an ROCE (return on capital employed) of more than 12.5%. It is also targeting growth in its markets for its equipment rental sector and an ROCE of more than 14.5%.
The company has also restructured its segments into: Equipment rental, Scandinavia; Equipment rental, Finland and Eastern Europe; Equipment rental, Central Europe; and Modular space.
It said it would publish additional sales figures for the company’s four largest countries – Sweden, Finland, Germany and Norway – broken down by equipment rental and modular space.
Leif Gustafsson, president and CEO of Cramo, said, “We believe Cramo is in the right position to capitalise on the demands of tomorrow and benefit from a changing environment.
“As digitalisation, migration and urbanisation continue to gain speed, demand for full-service renting solutions increases rapidly.”
He added that with a more focused business segmentation, enhanced performance culture and a clear customer orientation, the company would deliver on its growth strategy and enhance its synergies.