Increasing profitability in Northern Europe
Aiming for a lean organisation and an efficient service process
Caverion aims to increase the Group’s EBITDA to more than 6% of revenue by the end of 2016.
We will focus on improving the profitability especially in Northern Europe, where it has in the recent year been burdened by high fixed costs and lower project margins.
We aim for a lean, efficient organisation by cutting fixed costs, closing down unprofitable units, reducing organisational levels and concentrating project business to centres of excellence.
We have already carried out most of this restructuring. In addition, we continuously aim to increase service efficiency by upgrading our methods, processes and tools. Our target is to reach negative working capital by the end of 2016, particularly through more efficient invoicing. We will speed up the back office process of invoicing and facilitate reporting from the field by using mobile technology, among others.
Completion of less profitable projects is also important for improving profitability. We will be more selective in choosing our projects with regard to both profitability and risks.