Inside information: Talenom announces medium-term financial targets

Talenom Plc, Inside information, 25 October 2022 at 8:30

Inside information: Talenom announces medium-term financial targets

Talenom’s Board of Directors has decided on the company's medium-term financial targets, which emphasize net sales growth. Growth is expected to come primarily from the international markets and is based on active sales development, digital sales and acquisitions. Due to depreciation of significant software development investments and lower profitability of acquisition targets, the relative profitability of the next few years is expected to decline. The profitability of an acquisition target will rise to the level of Talenom’s core business in an estimated three years when new systems have been implemented at the target.

Talenom’s medium-term (2023–2025) financial targets are as follows:

• annual net sales growth of over 30%,
• annual EBITDA growth of over 15%,
• growing EBIT in euros and
• increasing dividend per share.

The company has no previous longer-term financial targets.

"The digital transformation in the European accounting and banking sector is happening now, and we want to be part of it. The development is supported by legislation, market trends and changes in consumer behavior. We have proven the effectiveness of our strategy and business model in Finland, and we are progressing in Sweden as planned. In Spain, we have made faster progress than anticipated," says Otto-Pekka Huhtala, CEO of Talenom.

Talenom's vision and core strategy remain unchanged. The company's vision is to provide superior accounting and banking services for SMEs, and the strategy is still based on facilitating the daily lives of corporate customers, highly automated accounting services and active customer care.

As a pioneer in the industry, Talenom combines the development of own systems and accounting services in a unique way. Own software development combined with expertise in the accounting industry gives the company a clear competitive advantage. Automation will free up expert resources from manual routines to customer support, enabling an unrivaled customer experience for corporate customers.

"In Finland, we have raised the rate of automation in accounting and payroll to over 75%. In many European countries, automation development is only now starting with digitalization. In addition, our experience shows that the threshold for changing software platforms is high. Encouraged by our experiences in internationalization, and as an industry forerunner we want to introduce the industry’s best practices to new markets. We believe that in the long term our business model that combines software development with consultative services is a winning concept,” says Huhtala.

In recent years, Talenom's net sales growth has clearly exceeded market growth and profitability has scaled heavily. The company's business model and strategy are well in line with the digital transformation of the industry and Talenom is well positioned to accelerate its internationalization.

Talenom's Business Review and strategy review

Talenom will talk more about its Q3 result, strategy and financial targets in an event that starts today, 25 October 2022 at 10:00 EEST. The review will be in English and can be followed either by webcast https://talenom.videosync.fi/2022-q3 or at the company’s premises in Sanomatalo (Töölönlahdenkatu 2, 00100 Helsinki). Pre-registration is required for on-site participation.

A recording of the webcast will be available after the event on the company’s website https://sijoittajat.talenom.fi/en/

Board of Directors
Talenom Plc

Further information:
Otto-Pekka Huhtala
CEO, Talenom Plc
+358 40 703 8554
[email protected]

Talenom is an agile and progressive accounting firm established in 1972. Our business idea is to make daily life easier for entrepreneurs with the easiest-to-use digital tools on the market and highly automated services. In addition to comprehensive accounting services, we support our customers’ business with a wide range of expert services, as well as financing, account and payment traffic services. Our vision is to provide superior accounting, account and payment traffic services for SMEs.

Talenom's growth history has been strong – average annual net sales growth was 16.2% in 2005-2021. In 2021, Talenom had an average of 1,012 employees in Finland, Sweden and Spain at a total of 52 locations. Talenom's share is quoted on the Main Market of Nasdaq Helsinki. Read more: sijoittajat.talenom.fi/en/