Strategy

In the 2020s, Admicom has changed from a single ERP system provider to a wide-scale software provider for the construction industry. Admicom still sees a lot of opportunities in Finland and internationally to boost the productivity of the construction industry through digitalisation, especially in the area of SMEs.

In November 2022, we published our clarified strategy, which puts the customer experience of customers in the construction industry at the heart of our operations. The aim is to significantly increase the productivity and quality of operations of construction entrepreneurs through digitalisation. Digitalisation solutions utilize both software and highly productized value-added services. Admicom’s strong foundation in Finland and its extensive user base in the construction value chain provide an opportunity to build data driven, AI-powered automated models. At the same time, Admicom can be a key player in the entire construction value chain, providing customers with increasing added value through partnerships.

Understanding the digitalisation needs of the construction industry, industry-specific operating models and selected software form the basis on which we will start planning determined internationalization for markets outside Finland.

The 1-2-year first phase of the strategy period will build the necessary foundation for accelerating organic growth, data-driven operations and strong internationalisation. At this stage, the main focus is especially on improved service for a wide range of current customers, expanding the customers’ range of solutions, and in improving ease of use of solutions, and in increasing the data-based functionalities and the degree of automation of the solutions.

We expect the downturn in the construction industry to diminish by the end of this first phase, during which we will build the foundation for strong organic growth as the recession eases. During this phase, we will increase our investments in growth projects, while constantly taking into account the market situation as the recession progresses.

In the second phase of the strategy period, a clearly stronger level of organic growth is sought from superior customer experience, synergistic sales work, diversifying solution offerings and international markets.

Acquisitions are still part of the company’s toolbox and can be used to support internationalisation or to expand the company’s solution offering for the digitalisation needs of construction customers.

• Admicom aims for a recurring revenue level of EUR 100 million (ARR) by 2030, clearly exceeding the “Rule of 40” target and being present in several European markets.
• During the first phase of the strategy for 2023-2024, we aim for organic recurring revenue growth of 8-15% and EBITA margin of 35-40%, due to increased growth investments.
• During the second phase of the strategy, Accelerating Growth, 2025-2030, we aim for more than 15% organic recurring revenue growth and EBITA margin to exceed 40% of revenue.
• Acquisitions will be an integral part of Admicom’s growth strategy and will contribute to accelerating the company’s overall growth.

Building sustainable future together.

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