Operating profit went up 83.5% to 187.1 MSEK (101.9), operating margin totaled 28.8% (29.0)
By Mattias Roos, CEO of SSM:
SSM had a year of powerful development in 2016 and there is considerable momentum within the company. We can look back on a year of 83 percent growth in earnings and strong development in our project portfolio at the same time as we strengthened and adapted our organization to suit the company’s new and future needs.
The improvement in operating profit during the year is largely a result of running more projects ourselves.
The operating margin remains at a high level and exceeds the company’s financial goals.
Housing prices in the Greater Stockholm area continued to rise during the year. The ongoing urbanization and macroeconomic situation with low unemployment in Stockholm together with the high demand for homes is favorable for our industry and represents a continued strong demand for housing in the Greater Stockholm area.
SSM has started 2017 with new financial targets and a renewed long-term business plan in which we have formulated our intention to gradually expand the number of housing starts by 2021 to reach a level of 1,800 starts per year. This year, our goal is to start production of approximately 1,000 apartments. Our new financial targets confirm our continued focus on profitable growth and strong returns together with long-term value creation.
- Net sales increased by 85.1% to 649.9 MSEK (351.1).
- Operating profit went up 83.5% to 187.1 MSEK (101.9), operating margin totaled 28.8% (29.0).
- Profit after tax was 144.7 MSEK (95.6).
- Earnings per share totaled 1.68 SEK (1.81).
- The proposed dividend for the year is 0 SEK (18.5). The Board of Directors has adopted a new dividend policy: >30 percent of the year’s profits from 2017 onwards with the first possible dividend in connection with the AGM in 2018.
- 2,951 building rights were acquired (513).
- 5,255 (2,337) building rights in the project portfolio, of which 1,479 (1,287) are in production.
- 96% (97) sales rate for apartments in production.
- During the year, the company made preparations for a potential listing on Nasdaq Stockholm.