Employment and Strategic Outlook: Mercor Group's Workforce and 2020-2023 Strategy
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Employment
The group employs over 900 people, of which about 80% are men. The number of employees in the last financial year increased by nearly 7% y/y, in the previous 3 years it remained at the level of approximately 850 employees. At the end of 2022/23, manual workers accounted for approximately 55% of the workforce, every fifth employee was employed in sales.
Strategy 2020-2023 The Company’s current covers the years 2020-2023, it was published in 2020 after the outbreak of the Covid-19 pandemic. The key elements/objectives of the strategy include:
■ Continuation of the current business model (design, production and sale of fire protection systems)
■ Maintaining the position of the leader in passive fire protection in Poland, while striving to gain and strengthen the position in the markets of Central and Eastern Europe, Scandinavia, Benelux, and England (the goal is a 60% share of foreign markets in revenues).
■ ROE at 13% per annum.
■ Współczynnik ROE na poziomie 13% w skali roku.
■ Stable dividend policy assuming a dividend payment of 30% of the consolidated net profit.
■ Net debt (excluding IFRS 16) below 3x EBITDA.
In our opinion, the strategy was not particularly ambitious, taking into account the results generated by the Company before its announcement. ROE in the 2019/20 financial year was almost 16%, and the net debt to EBITDA ratio was below 1.3x. These indicators improved further in the following years. The dividend payout ratio is also above the level assumed in the strategy (56% for the 2022/23 financial year). However, the Company did not increase the share of exports in revenues, but this is also due to the dynamic growth of domestic revenues.
