NWG // FINANCIAL INFORMATION
Financial Targets and Dividend Policy
New Wave Group strives for sustainable and profitable sales growth through expansion within its three operating segments – Corporate, Sports & Leisure and Gifts & Home Furnishings – with a growth target, over an economic cycle, of 10 – 20 % per year, of which 5 – 10 % is organic growth, and an operating margin of 20 %. In addition, New Wave Group has a target for its equity ratio, stipulating that the equity ratio shall not fall below 40 % over an economic cycle.
The dividend policy states that 40 % of the Group’ s net profit shall be distributed over an economic cycle.
Other Information
A description of the Group’ s governance and the work of the Board of Directors is presented in the Corporate Governance section.
Proposed appropriation of profits
The following amounts are available to the Annual General Meeting:
SEK |
Retained earnings |
1,578,038,678, |
Share premium reserve |
48,017,672, |
Result for the year |
294,500,000 |
Total |
1,920,556,350 |
The Board proposes a dividend of SEK 3.00( 3.50) per share, totaling SEK 398,061,258( 464,404,801), and that retained earnings and the profit for the year totaling SEK 1,578,038,678( 1,669,488,491) be carried forward. The dividend is to be paid in two half-year installments of SEK 1.50 per share.
Statement by the board regarding the proposed dividend
Justification
The Group’ s equity has been calculated in accordance with the IFRS standards adopted by the EU and the interpretations thereof, as well as in accordance with Swedish law through the application of the Swedish Financial Reporting Board’ s recommendation RFR 1 Supplementary Accounting Rules for Groups. The Parent Company’ s equity has been calculated in accordance with Swedish law and through the application of the Swedish Financial Reporting Board’ s recommendation RFR 2 Accounting for Legal Entities.
The proposed dividend corresponds to 51 %( 53) of the Group’ s profit after tax, which is in line with the stated objective that dividends shall correspond to 40 % of the Group’ s profit after tax over an economic cycle. Consideration has also been given to the Group’ s investment plans, consolidation needs, liquidity, and overall financial position.
The Board of Directors finds that full coverage exists for the Company’ s restricted equity after the proposed dividend. The Board also finds that the proposed dividend to shareholders is justifiable with reference to Chapter 17, Section 3, second and third paragraphs of the Swedish Companies Act( the nature, scope and risks of the business, as well as consolidation needs, liquidity and the Company’ s overall position).
The Board wishes to emphasize the following:
Nature, Scope and Risks of the Business The Board of Directors assesses that the Company’ s and the Group’ s equity, after the proposed dividend, will be sufficient in relation to the nature, scope and risks of the operations. In this assessment, the Board considers, among other factors, the historical performance of the Company and the Group, the budgeted development, investment plans, and the prevailing economic conditions.
Consolidation Needs The Board has conducted a comprehensive assessment of the financial position of the Company and the Group and their ability to meet their obligations in the long term. The proposed dividend corresponds to 17 %( 18.0) of the Company’ s equity and 5.8 %( 6.4) of the Group’ s equity. The stated objective for the Group’ s capital structure— an equity ratio of at least 40 %— is maintained after the proposed dividend. The Company’ s and the Group’ s equity position is strong. Against this background, the Board considers that the Company and the Group are well‐positioned to manage future business risks and to withstand potential losses. Planned investments have been taken into account when determining the proposed dividend. The dividend will also not adversely affect the Company’ s and the Group’ s ability to carry out additional commercially justified investments in accordance with adopted plans.
Liquidity The proposed dividend will not affect the ability of the Company and the Group to meet their payment obligations as they fall due. The Company and the Group have access to liquidity reserves in the form of both short‐term and long‐term credit facilities. These facilities may be drawn at short notice, ensuring that the Company and the Group are prepared to handle variations in liquidity as well as any unforeseen events.
Other Financial Circumstances The Board has considered all other known circumstances that may be
098 // ANNUAL REPORT