Peab’s management steers the business based on the Board’s guidelines that are founded on three financial goals – Return on equity, the Equity/assets ratio and Dividends.
The goals are concrete, clear and simplify communication with financial markets. We use our goals to measure how well we can meet the market long-term, regardless of business and development cycles. Due to changes in the financial situation our goal achievement may vary.
Return on equity will be a minimum of 20 percent
The return on equity amounted to 19.6 percent (21.3) in 2018. Return on equity has been close to the goal of 20 percent in recent years due to higher earnings in operations.
Equity/assets ratio will be a minimum of 25 percent
In recent years the equity/assets ratio has been better than the goal and in 2018 it amounted to 30.4 percent (32.2). The lower equity/assets ratio is due to a higher balance sheet total as the result of more tied up working capital and investments in property in business area Project Development as well as investments in business area Industry.
Dividends will be a minimum of 50 percent of profit after tax
The dividend for 2018 was of SEK 4.20 (4.00) per share. Calculated as a share of the Group’s recognized profit for the year the dividend is 59 percent (58). The dividend is equivalent to a direct return of 5.8 percent (5.7) calculated on the closing price on December 31, 2018.
* Not recalculated taking IFRS 15 into account