Brief: Serstech Issues Profit Warning And Sets New Financial Goal

Serstech AB

02/12/2019 08:04

Dec 2 (Reuters) - Serstech AB  SERT.ST :
    * REG-SERSTECH ISSUES PROFIT WARNING AND SETS NEW FINANCIAL
GOAL
    * BOARD OF DIRECTORS HAS CONCLUDED THAT LIKELIHOOD OF
REACHING
THIS GOAL IN 2020 IS LOW.
    * OVER LAST THREE QUARTERS, SERSTECH HAS GROWN AT A
TRIPLE-DIGIT
PACE AND EXPECTS A CONTINUED HIGH GROWTH FOR COMING FIVE-YEAR
PERIOD.
    * MARKET FOR SERSTECH'S PRODUCTS IS MORE THAN 1500 MSEK AND
HAS AN
ANNUAL GROWTH RATE OF 10%, WHICH IS EXPECTED TO BE CONSISTENT
FOR NEXT SEVERAL YEARS.
    * BOARD HAS THEREFORE SET A FIVE-YEAR REVENUE GROWTH TARGET
OF AT
LEAST 50% PER YEAR ON AVERAGE.
    * EBITDA RESULTS TARGET IS SET TO BE AT LEAST 25% BY END OF
FIVE-YEAR PERIOD
    * EXPECTATION IS THAT RESULTS WILL BE CLOSE TO ZERO AT
BEGINNING
OF PERIOD, DUE TO INCREASED
    * EXPECTATION IS THAT RESULTS WILL BE CLOSE TO ZERO AT
BEGINNING
OF PERIOD, DUE TO INCREASED INVESTMENTS IN RESEARCH AND
DEVELOPMENT AND SALES.

Source text for Eikon:  ID:nGNE7qYwsg 
Further company coverage:  SERT.ST 

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