SRV GROUP PLC INVESTOR NEWS 16 DECEMBER 2019 13.30 EET
SRV’s co-operation negotiations have been completed
SRV has completed the co-operation negotiations, launched in November, held in SRV Group Plc, SRV Construction Ltd and SRV Infra Ltd. Negotiations were conducted as part of a recovery programme, which started in October. The programme focuses on organisation and organisational culture reformation, lightening company’s balance sheet, strengthening cash flow, and cost savings.
Negotiations identified ways to reduce the need for adjustment. The planned personnel adjustment measures, cost saving measures and attrition are expected to generate the expected annual cost savings of EUR 6 million.
As a result of the co-operation negotiations, the number of personnel will be reduced by a maximum of 48 persons. Furthermore, layoffs and part-time assignments will be implemented for an estimated 12 person-years. The combined effect of the adjustment measures and other attrition is about 80 person-years. The company initially estimated the need for personnel adjustments to be 90 person-years.
Recovery programme’s short-term goal is to ensure company’s operative operating profit and cash flow for 2020 are positive and returning its operative operating profit for 2021 to the level of 2017.
For further information, please contact:
Saku Sipola, President & CEO, tel. +358 (0) 40 551 5953, saku.sipola@srv.fi
Ilkka Pitkänen, CFO, tel. +358 (0)40 667 0906, ilkka.pitkanen@srv.fi
Maija Karhusaari, Senior Vice President, Communications and Marketing, tel. +358 (0)45 218 3772, maija.karhusaari@srv.fi
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SRV in brief
SRV is a bold developer and innovator in the construction industry. We want to offer the best customer experience as a constructor of urban city centres, while also being the most attractive employer in the industry. Our genuine cooperation and enthusiasm for our work comes across in every encounter. Sustainability is reflected in all our activities.
Established in 1987, we are a publicly listed company since 2007 in Helsinki Nasdaq stock exchange that operates in selected growth centres in Finland and Russia. Our revenue in 2018 was EUR 960 million. Over 1,000 people work for us and we employ a network of almost 4,000 subcontractors in our projects.
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