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14 December 2022 at 3.15 pm EET
Gofore updates its strategy and long-term financial targets – Changes in the management team
Gofore Plc’s Board of Directors has today accepted the company’s updated strategy for 2023-2024, as well as updated long-term financial targets.
The strategy update that Gofore carried out together with its staff strengthens the company’s growth strategy, while sharpening its choices according to Gofore’s strengths. Gofore continues to pursue strengthening its position as an agile, culturally strong and developing top expert organisation that helps its customers in digital transformation.
The three strategic growth avenues for organic growth are the industries that the Digital Society and Intelligent Industry industries, which the company will be focusing on, and supporting growth with mergers and acquisitions. Gofore’s vision is to be the most significant European digital transformation consultancy.
Gofore’s strategic focus themes are:
– Industry focus
– Future of work
Growth strategy avenues derived from the focus themes are:
– Digital Society
– Intelligent Industry
– Mergers and acquisitions
Gofore updates its long-term financial targets
In connection with the strategy update, Gofore’s Board of Directors has approved updated long-term financial targets. The organic growth of Gofore’s business has for long continued as faster than the overall growth of the IT services market and exceeded the company’s own targets.
- Gofore targets over 25 (over 20) percent of annual net sales growth.
- Organic growth target is over 15 (over 10) percent of annual growth.
- Gofore continues growth by acquisitions and targets 10 (10) percent of annual growth.
- Gofore’s profitability target is 15 (15) percent adjusted EBITA.
Gofore’s dividend policy continues to be paying a minimum of 40 percent of net profit in dividends.
Strategic focus themes
Gofore has chosen four strategic focus themes that guide the strategy execution in the next two years. With the industry focus, Gofore strives for a deeper understanding of the chosen industries, Digital Society and Intelligent Industry, that it has decided to focus on.
Gofore sees sustainability as a more and more strategic area and a business opportunity. Gofore intends to e.g. grow its business by supporting the customers’ sustainability goals particularly in the areas of green transition, green ICT and socially sustainable digital services.
The customer work impact related to sustainability themes also strengthens the company’s already excellent employer brand. Gofore wants to continue to offer its experts increasingly meaningful work and development opportunities.
Diversifying of future working life means that as an employer, Gofore wants to individually cater to the needs of several different employee groups, and this way differentiate itself as the most attractive employer in the talent competition. To reach this goal, Gofore also develops current and new Group companies, as well as its ability to work together with the companies and entrepreneurs in its partner network.
Gofore intends to continue growing its international business in the chosen DACH area, i.e. German-speaking Europe. The eMundo acquisition in November 2022 gave Gofore a stronger than before growth platform and a professional team in the area, as well as a portfolio of large, long-term customer relationships with international companies.
Strategic growth avenues
Gofore’s ambition for the next years is for business growth in the following areas: Digital Society and Intelligent Industry, as well as mergers and acquisitions.
Gofore has grown organically relying on successful recruiting and good ability to serve its customers, especially in large and more demanding projects. Strong organic growth is also continued in the future. Gofore’s objective is a leading position in its two main industries, both of which have significant international business potential. Organic growth is supported by acquisitions.
Gofore has a sturdy market position as one of the leading Finnish builders of digital society, and the company intends to keep building on its success in this area both in Finland and abroad. Gofore’s success is based on the ability to deliver extensive, demanding projects with an agile development method, and a comprehensive offering that caters to the needs of this industry.
Finnish societal digitalisation is still very much a growing market, where both the public sector and private operators invest. Gofore wants to strengthen its position as a leading supplier for the industry and be profiled as an expert in demanding projects.
Finland is internationally known for its pioneering societal digitalisation, and Gofore sees a promising business opportunity in digital exports.
Gofore has built a good market position and customer portfolio of leading companies in the growing industrial digitalisation area, i.e. the digitalisation of machines, devices and services. A key trend of the industry is the growth of the meaning of software, data, and other IT as part of product design and lifecycle. Intelligent industry has a pivotal role in carrying out the green transition that will also bring Gofore business opportunities in the form of related digitalisation projects.
Gofore wants to be increasingly profiled as an agile digitalisation partner for large industrial companies in both Finland and abroad, by extending and deepening its collaboration with leading companies in the industry. In Finland and the DACH area, there are many industrial companies who Gofore serves with its strong industry expertise supplemented by acquisitions. Gofore especially pursues large customers, and uses customer insight in striving for long term, strategic partnerships.
Mergers and acquisitions
Gofore has made eight acquisitions in 2017–2022, and used them to grow its expertise, shareholder value and culture. The Devecto and eMundo acquisitions Gofore made in 2022 completed its intelligent industry services, as well as its customer and service portfolio in the DACH area, in line with strategic growth avenues. Gofore will continue similar controlled acquisitions that renew its service offering and customer portfolio.
Gofore is a domestically well-known and appreciated acquisitor, and its digital platform is easy to integrate to. Active work in carrying out mergers and acquisitions will continue in both Finland and in the DACH area.
Gofore Impact foundation being planned
As part of the sustainability theme of its strategy, Gofore is planning to start a foundation called Gofore Impact, to promote societal digital change.
The main purpose of the planned foundation would be to support the positive impacts of digitalisation, such as democracy and equality development, to mitigate the social tensions and side effects related to digital change, as well as relieve digital inequality and social exclusion. The foundation would also like to have an impact on the diversity of digital change makers, as well as the overall vitality of our industry.
The now planned foundation would pursue its goals mainly by supporting research and giving out donations, contributions and grants for various projects.
Gofore plans to start the foundation during 2023. Gofore’s Board of Directors plans to propose the Annual General Meeting 2023 making a donation to the Gofore Impact foundation to start its operations.
Changes in Gofore’s management team
To support the execution of the growth strategy for the next years, there will be changes in Gofore Group’s management team.
Devecto Oy’s Chief Executive Officer Harri Laukkanen is appointed as a member of the management team. In addition, Director of Digital Transformation Elja Kirjavainen is appointed deputy Group CEO. As of 1 January 2023, Gofore’s management team will be:
Mikael Nylund, Chief Executive Officer
Sanna Hildén, Director, People Operations
Ville Hurnonen, Director, Mergers and Acquisitions
Elja Kirjavainen, deputy CEO, Director of Digital Transformation and Managing Director, Gofore Lead Oy
Harri Laukkanen, Director, Industrial Digitalisation and Managing Director, Devecto Oy (name will be changed to Gofore Drive Oy)
Kalle Mäki, General Counsel
Miika Nurminen, Director, Digital Quality Assurance and Managing Director, Gofore Verify Oy
Petra Sievinen, Director, Marketing and Communications
Teppo Talvinko, Chief Financial Officer
Riikka Vilminko-Heikkinen, Director, Sales and Customer Value
Juha Virtanen, Director, Digital Services Development
Capital Markets Day on 13 January 2023
Gofore will present its updated strategy in a Capital Markets Day on 13 January 2023. Invitation and instructions on how to enrol for the event will be send out separately today, 14 December 2022.
Mikael Nylund, CEO, Gofore Plc
tel. +358 40 540 2280
Gofore Plc is a digital transformation consultancy with some 1,300 impact-driven employees across Finland, Germany, Spain, and Estonia – top experts in our industry who are our company’s heart, brain, and hands. We use our holistic service offering – consulting, coding, design, and verification – as tools to incite positive change. We care for our people, our customers, and the surrounding world. Our values guide our business: Gofore is a great workplace that thrives on customer success. In 2021, our net sales amounted to EUR 104.5 million. In 2022, Gofore is celebrating its 20th anniversary. Gofore Plc’s share is listed on the Nasdaq Helsinki Ltd. in Finland. Get to know us better at www.gofore.com.