Zengun Group AB (publ) Full Year Report January – December 2022
“In 2022, orders received were high for Zengun. In the fourth quarter, we focused on delivering in our projects and on nurturing the confidence won during the year.”
Mick Salonen, President and CEO
Fourth quarter
• Net turnover amounted to MSEK 742.7 (622.0)
• EBITDA totalled MSEK 26.0 (26.3), corresponding to an EBITDA margin of 3.5% (4.2)
• Earnings before tax amounted to MSEK 13.6 (9.2)
• Operating cash flow was MSEK 67.7 (outflow: 2.0)
• Orders received totalled MSEK 159.6 (1,073.4)
• The order book amounted to MSEK 3,633.1 (3,244.3)
January - December
• Net turnover amounted to MSEK 2,468.8 (1,777.1)
• EBITDA totalled MSEK 102.5 (81.4), corresponding to an EBITDA margin of 4.2% (4.6)
• Earnings before tax amounted to MSEK 45.2 (16.1)
• Operating cash flow was MSEK 74.1 (73.1)
• Orders received totalled MSEK 2,857.6 (3,967.0)
Statement by the CEO
Stable quarter with projects in focus and a high turnover
In 2022, orders received were high for Zengun. In the fourth quarter, we focused on delivering in our projects and on nurturing the confidence won during the year. Turnover was high as the result of several of our commercial city-centre projects entering intense production phases, including Vectura’s Forskaren property in Hagastaden and Pembroke’s project in Kv. Hästen 21 next to NK, where we were able to commence heavy demolition.
The development of Haga Norra in Solna continued together with Fabege and Brabo Stockholm. During the period, we completed the three-year production of a residential building of 418 apartments. We are now following through with plans for workplaces and commercial spaces in the area.
Zengun re:do, our subsidiary that focuses on, inter alia, tenant improvements, captured important market shares in 2022. In the fourth quarter, two training facilities were completed: F9 in Solna Business Park as well as one in Bonnierhuset. The facilities promote training and well-being, another major and important aspect of Zengun’s corporate culture.
Strong financial position
In October, we bought back more of our own bonds, this time for a nominal amount of MSEK 5. In 2022, we invested a total of MSEK 50 in our bonds. By doing so, we have efficiently reduced our interest expenses while strengthening our financial position, which is particularly important given the prevailing economic circumstances.
Competent organization
Zengun continues to strengthen its organisation with the addition of several new employees. In the fourth quarter of 2022, a new CFO was appointed in Oskar Björklund, who joins company management. Oskar has worked at Zengun since 2021 and knows its corporate culture well. We are a company that allows our employees to grow – and we grow alongside them.
I am happy that Zengun is active in having an impact on industry-wide issues. In December, Helena Swahn Lepre, our Head of People, participated at a seminar at the Stockholm Chamber of Commerce about the importance of collaboration between vocational colleges and the business community for managing the critical lack of expertise we are seeing in the construction industry.
Zengun’s active sustainability initiatives
It has now been finalised that Hållbarhetshuset is one of the finalists for Årets Bygge 2023 (Eng: Building of the Year). This pilot building was completed in the fourth quarter and is part of the Vinnova project “Återhus – building buildings from buildings.” Hållbarhetshuset was constructed on the initiative of Fabege and comprises about 70 percent reused material, which is unique. Through reuse, we have saved a total of 105 kg of CO2 emissions per square meter.
Continued high tempo
The fourth quarter was marked by challenges in our business environment, with material shortages, cost increases, the energy crisis and an ongoing war in Europe. As a result, the many successes in this quarter are of extra significance.
In December, we welcomed the Land and Environmental Court’s decision that granted Cementa a four-year permit to continue quarrying operations in Slite. As a result, Sweden’s cement supply has been safeguarded for the near future, which is decisive for a vibrant construction industry and, ultimately, the entire Swedish economy. All in all, Zengun completed the year entirely in accordance with the plan and I look forward confidently to 2023. We will continue to do what we do best – building cities.
Mick Salonen
President and CEO
For further information, please contact:
Mick Salonen, President & CEO, +46 (0) 70 569 66 73
Oskar Björklund, CFO, +46 (0) 79 072 84 57
This information is information that Zengun Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 24 February 2023 at 8:00 a.m. (CET).
Driving projects drives Zengun. We operate in Stockholm and the Mälardalen region, in close collaboration with customers and always with the project and people in focus. We help property owners improve their property portfolios in each project by offering know-how and skills as a collaboration and sustainability partner throughout the entire lifespan of the project. We build commercial properties, with a mix of select public-sector properties and residential projects. We take the long term into consideration for our employees, customers and surroundings, and are constantly developing to make each project a reference project. In 2022, Zengun had sales of approximately SEK 2.5 billion and 150 employees. #zengunbyggerstaden