We are building a stronger Coor for the future

In 2023, we won a number of major new contracts, including Swedbank, and we extended a number of important contracts. We also saw a good level of activity in the market and a very positive trend in our TRIF rate, says Andreas Engdahl, CFO and IR Director, Coor.
How would you sum up 2023?
“There was a lot that was positive. We saw a good level of activity in the market, and we won a number of new contracts, including the contracts with Swedbank in Sweden and ATP Ejendomme in Denmark. We also extended a number of important contracts, such as those with Aibel, Equinor Offshore and MAN. We have a strong position in a market with solid organic growth, so there are good prospects for continued growth. We are also proud of our high level of ambition in environmental and social sustainability, where we are seeing a positive trend when it comes to our injury rate, for example, following several years of active efforts.

Yet 2023 was also a challenging year, marked by global unrest and a continued high level of inflation. As a company, we did not quite perform in line with our financial targets. I have strong confidence in the concerted effort we are now making in the form of an action program and am confident that it will take us back to our target margins.”

What was your focus as CFO during the year?
“My main focus during the year was on profitability. But while profitability was naturally high on the agenda during the year, it was also important to continue focusing on other important value drivers in the company. We maintained a high cash conversion rate, which is a key factor for a high dividend payout.”

Is sustainability still high on the agenda?

“We always have a strong focus on sustainability, both social and environmental. Early in the year, Coor signed an agreement on sustainability-linked refinancing. The transaction is also a testament to the confidence our partner banks have in Coor and I would like to thank them for their continued support. Through this sustainability-linked transaction, we also confirm Coor’s strong social and environmental commitments, which are a central part of our strategy.

“During the year, we also had our net zero 2040 goal validated by a third party. This shows once again that we are focusing on the right things in our sustainability strategy. This is one of the things we are doing to future-proof our company and maintain our market-leading position in facility management in the Nordics.”

Coor is stable despite the uncertain environment. What do you put that down to?
“Coor has a strong financial position as well as a high cash conversion rate. We are secure thanks to our well-thought-out business model with a large share of subscriptions, which gives us the ability to generate strong cash flows even in times of rapid change. During periods of economic weakness many businesses need to become more efficient, and efficiency is exactly what Coor does best! I also know from experience that many new outsourcing opportunities tend to appear in challenging times.”

What is Coor’s attitude to the dividend yield?
“Coor places great value on a high dividend yield. Under our dividend policy, we aim to distribute 50 per cent of our adjusted net profit but historically the payout has been closer to 100 per cent. In addition to that, we have been able to make a number of important value-adding acquisitions that have further strengthened our position in the Nordic market.”

How do you see the future for Coor?
“I see a bright future. The action programme we launched in autumn 2023 will strengthen our profitability going forward. We are taking an integrated approach and are building a stronger Coor for the future. The goal is to strengthen our profitability and return to our financial targets while continuing to build a sustainable company. The fact that we have an attractive offering in a growing market and a history of being strong in times of rapid change makes me confident about 2024 and the coming years.”

Three reasons to invest in Coor

Coor is a market leader in a stable market with good growth opportunities.
Coor is relatively immune to the economic cycle with stable profitability.
Coor has a high cash conversion rate, creating scope for dividend payments.