Bygghemma Group First (now BHG Group) experienced a number of challenges shortly after its listing in 2018. Share liquidity was low, the integration of two operations was taking all energy and negative press led to the share price falling below the listing level.
BHG contracted Comir and the management and the Board of Directors decided on an IR strategy after an initial analysis. The cornerstones for this strategy were:
- “Underpromise and overdeliver”
- Close dialogue with the 20 largest owners to restore confidence
- Attract investors with industry know-how in the UK and US
- Attract new highly reputable principal owners
- Increase share liquidity with the help of more retail owners
- Increase the number of analysts monitoring the business
An intense programme with management meeting with investors in the Nordic region, the UK and the US started immediately. In parallel, talks commenced with Swedish and international investment banks to increase the number of analysts and extend scope to the US. The PR programme to attractive retail investors included traditional tools such as profile interviews and press releases on acquisitions and news. Concurrently, a new graphic profile and website were developed that, combined with the new name of BHG Group, better reflected the direction of the business.
Two years later, the number of shareholders in BHG Group, under CEO Adam Schatz and CFO Jesper Flemme’s leadership, had increased from 1,000 to 10,000, liquidity was five times higher and the number of analysts had doubled. The share of Anglo-Saxon shareholders rose rapidly and the principal owners could reduce their holdings. In 2021, EQT purchased just over half of FSN’s holding and other shares were purchased by several reputable Swedish, US and British institutions.
A well-defined strategy, rapid organic growth, 20 or so acquisitions and two new share issues totalling SEK 2.5 billion since the listing mean that the business is now the Nordic region’s largest online Home Improvement company, with a rapidly growing presence across the European continent. But the journey has only just begun. The one-of a kind entrepreneurs in management, the Board and the Group across about 25 commercial units are now aiming for SEK 20 billion in sales within a few years.
“I have always had huge confidence in Johan in our work together, both for the task of developing financial communication, and equally for his advice and discussions concerning other strategic issues for the Group.”
Adam Schatz, CEO