Page 11 - Restamax Plc Annual Report 2017

11

REVIEW BY THE CHAIRMAN

OF THE BOARD OF DIRECTORS

Record-level rise in share price Henkilöstöpalvelut Oy and its subgroup on the Nasdaq
Helsinki Ltd Stock Exchange during the spring of 2018.
There is strong confidence in Restamax among investors
and the market. In 2017, the development of our Group’s Taking Finnish restaurant competence abroad
share price was stronger than ever before: at the end of
2016, the share price was about EUR 6, and by the end Our strategic objective has been to expand our restaurant
of 2017, it had risen to above EUR 8. At the end of 2017, operations abroad during 2018. In spring 2018, we took
the share target price was EUR 8.80, and in April 2018 it the first step to implement the strategy by expanding
rose to as high as EUR 12. In 2017, Kauppalehti ranked our restaurant business to Denmark. Our goal is to reach
Restamax as the 14th most profitable listed company, a key position in the Danish restaurant market. In addi-
based on its gross yield of 49.1 per cent. tion to this, we intend to expand to other parts of North-
ern Europe where the restaurant market is fragmented
Looking at the restaurant field generally, 2017 was a and we therefore see significant potential in it. We will
growth-oriented year. According to the Finnish Hospi- continue our internationalisation through corporate
tality Association (MaRa), the turnover of the tourism acquisitions and the export of our own concepts. We are
and restaurant industries increased by 6.5 per cent in currently negotiating actively in several countries.
the period January–December 2017. Consumer confi-
dence strengthened towards the end of the year and, in We have strong competence that we can also export
January 2018, rose to the highest measured value in its beyond the borders of Finland. Therefore, we will be
history. Finland attracted more tourists than before, and able to offer our personnel versatile career opportunities
the increase of tourism naturally had a positive effect on abroad too.
the demand for restaurant services. Overnight stays by
foreign tourists in hotels in Finland increased faster than Becoming one of the largest in the Nordic
in other Nordic countries: the increase was nearly 17 per countries
cent from the previous year. The majority of our tourists
are Chinese. In 2017, the number of Chinese tourists Announced in April 2018, our planned joining of forces
travelling to Finland increased by more than 35 per cent with Royal Ravintolat will create a platform for the econ-
from the previous year. omy and competence that will also accelerate our growth
abroad. With the deal, the size of the restaurant business
The Alcohol Act, which fully entered into force at the of our company will reach a completely new level. Royal
beginning of March 2018, is a much-needed boost for the Ravintolat has a significant market position in Helsinki,
industry, allowing happy hour marketing and extended and Restamax has a significant position elsewhere in
opening hours, among other things. We will take advan- Finland. Together we will be one of the largest restaurant
tage of the reform in our operations, and we believe that groups in the Nordic countries listed on the Helsinki Stock
it will both strengthen customer flows and increase the Exchange. We want to build a restaurant company that
average size of customer purchases. combines an entrepreneurial approach, an attitude that
emphasises the role of restaurateurs and the development
New step in labour hire resources of a big company. As companies, Restamax and
Royal Ravintolat complement each other in terms of their
The 2017 financial period was also successful for our labour product portfolios and competencies. The deal is expected
hire segment. Smile Henkilöstöpalvelut is now one of the to be realised in summer 2018, and the aim is to carry out
largest companies in the sector in Finland. The geographic the integration in late 2018 and early 2019.
coverage and number of personnel at the branches of our
labour hire segment are larger than ever. Smile’s organic In December 2017, we published a new long-term strategy
growth has been supported by strong investment in and objectives. We have now begun to implement these
marketing and brand work, among other things. with a positive mind. Our Group’s goal is to reach a
turnover of approximately MEUR 400 by the end of 2020,
As a result of an increase in the demand of the economy restaurant business accounting for approximately MEUR
and for labour hire services, the market in the sector also 200 and labour hire approximately MEUR 220 of the total
looks very positive. The rate of growth of our labour hire turnover. Restamax is a strong and profitable company.
business has been much faster than the general devel-
opment of the sector and our restaurant segment. Since
2014, when labour hire became part of our Group, the
growth of the segment has been strong. Now the time
is ripe for the next move. In March 2018, our Board of
Directors announced that it would review and evaluate Timo Laine
the listing of the labour hire business comprising Smile Chairman of the Board of Directors, Restamax Plc

Annual Report 2017