Interim report January-March 2020

KICK-OFF FOR A NEW ORGANIZATION 

January-March 2020

• Order bookings amounted to SEK 2,975 million (1,177) and the order backlog was SEK 10,576 million (5,973)
• Income amounted to SEK 1,814 million (1,480)
• The operating loss was SEK 149 million (profit 18), of which non-recurring expenses amounted to SEK 135 million
• At the end of the period, available cash and cash equivalents totaled SEK 587 million
• Cash flow from operating activities amounted to an outflow of SEK 233 million (262)
• Cash flow for the period amounted to an outflow of SEK 50 million, of which Karlatornet had a negative impact by SEK 140 million
• The loss for the period amounted to SEK 106 million (profit 10)
• The sale of the Karlatornet Tower has been postponed as a direct consequence of the uncertain situation in the global financial market caused by the Coronavirus pandemic. The level of activity in the project has been reduced to a minimum, with expenses of SEK 58 million associated with the project having burdened the quarter.
• The reorganization process is progressing, and efficiency measures are being implemented that will release about 200 million on an annual basis from the beginning of 2021. These measures will cut expenses throughout the organization and entail as many as 100 full-time employees being served notice of termination. Measures to restructure the organization burdened profit for the quarter by SEK 30 million.

Ola Serneke, CEO Serneke Group, comments:

“The adjustment our company is currently making should be considered in light of the current COVID-19 situation but is primarily part of a more long-term process aimed at shifting our principal focus from growth to profitability. Our recent financial results signal that, following many years of strong growth, we are in a phase where we must do what we have always been good at – daring to question, making decisions and continuing to focus ahead.”

“We choose to do this right now, not only because it is required of us, but also because the conditions for doing so are favorable, despite a somewhat uncertain situation with the pandemic. We have a historically strong order backlog of approximately SEK 10.5 billion, almost double what it was compared with the same time a year ago.”
 

Presentation of the Interim Report for January-March 2020

On May 5, 2020 at 9:00 a.m. (CET), Serneke Group will comment on this Interim Report in a conference call with an online presentation for investors, analysts and the media. The presentation will be in Swedish and can be followed live via webcast at https://tv.streamfabriken.com/serneke-q1-2020.. Presentation materials for the presentation will be available on the website one hour before the webcast begins.

To participate, please dial: +46 8 566 426 95

For more information, please contact:

Anders Düring, CFO
Tel: +46 70 888 7733
anders.during@serneke.se

 

This information is such that Serneke is required to disclose under the EU Market Abuse Regulation. The information was submitted under the auspices of the contact person stated above, for publication on 5 May 2020 at 08.00 a.m. CET.
 

Serneke is a rapidly growing corporate group active in contracting and project development. The Group was founded in 2002 and today has income of SEK 6.7 billion and approximately 1,200 employees. Through novel thinking, the Company drives development and creates more effective and more innovative solutions for responsible construction. The Company builds and develops housing, commercial buildings, industrial facilities, public buildings, roads and civil engineering projects, and other infrastructure. The company’s customers consist of both public and commercial clients. The company operates throughout Sweden and is organized into five regions: South, West, East, Central and North. Serneke has its headquarters in Gothenburg and offices in Stockholm, Malmö, Alingsås, Borås, Eskilstuna, Halmstad, Helsingborg, Jönköping, Karlstad, Luleå, Skövde, Strömstad, Trollhättan, Uppsala, Varberg, Växjö and Örebro. The Company’s Series B shares (SRNKE) have been listed on the Nasdaq Stockholm exchange since November 2016.
 

More information about Serneke Group AB can be found at www.serneke.se