HUMBLE RAISES FINANCIAL TARGETS REGARDING GROWTH AND PROFITABILITY

HUMBLE RAISES FINANCIAL TARGETS REGARDING GROWTH AND PROFITABILITY

The board of Humble Group AB (publ) (“Humble”) adopted new medium-term financial targets for the Humble Group on the 26th of March 2021. Today, the board has decided to raise the financial growth target to a net turnover of SEK 13 billion proforma (increase of 63 percent from the previous target of SEK 8 billion), with a target of organic growth of 15 percent per year (increase of 50 percent from the previous target of 10 percent per year), as well as raise and replace the previous profitability target with a fixed adjusted EBITDA-target of SEK 1.5 billion on a proforma basis (increase by 88 percent compared to the previous target of an adjusted profitability margin of 10 percent). The financial targets have been raised due to a strong growth, a faster acquisition pace than previously anticipated, an improved balance sheet as well as a positive response from entrepreneurs and relevant market participants that wants to become a part of the Humble Group. The other financial targets and the time period for the targets regarding the medium-term (2025) remain unchanged.

The reasons for raising the targets are as follows:

  • Humble has acquired more companies, and in a faster pace, than anticipated when the previous financial targets were established in March 2021. Humble signed binding agreements to acquire a total amount of 13 companies during the first 6 months of 2021. Combined, those companies generated a turnover of SEK 1,518 million with an adjusted EBITDA of SEK 216 million, during the twelve-month period starting from Q2 2020 up until Q1 2021.
  • Several of the acquired companies have higher organic growth than our previously stated target.
  • Humble has experienced a positive response from entrepreneurs and other relevant market participants, which, among other things, has resulted in more high quality companies reaching out to Humble, than previously anticipated.
  • Humble has during the first six months of 2021 issued bonds and completed a directed share issue which in total has added SEK 1,400 million to the company, where the framework of the existing bonds enables further financing of up to SEK 1,000 million.
  • Humble has during Q2 2021 completed a large procurement of bank services for the Humble Group, and have received several positive offers from leading Nordic banks, where a house bank will strengthen the entire groups bank service- and credit-terms substantially compared to the previous ones.

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