Zengun Group AB (publ) Full Year Report January - December 2023

“Despite the industry’s challenges, Zengun posted its highest turnover to date. Turnover for the year totalled MSEK 2,771, and EBITDA totalled MSEK 123.” Mick Salonen, President and CEO

Fourth quarter

•         Net turnover amounted to MSEK 781.3 (742.7)

•         EBITDA totalled MSEK 33.9 (26.0), corresponding to an EBITDA margin of 4.3% (3.5)

•         Earnings before tax amounted to MSEK 16.9 (14.1)

•         Operating cash flow was MSEK 15.2 (67.7)

•         Orders received totalled MSEK 722.6 (159.6)

•         The order book amounted to MSEK 2,791.7 (3,633.1)

January - December

•         Net turnover amounted to MSEK 2,771.2 (2,468.8)

•         EBITDA totalled MSEK 122.8 (102.5), corresponding to an EBITDA margin of 4.4% (4.2)

•         Earnings before tax amounted to MSEK 58.2 (45.7)

•         Operating cash flow was MSEK 142.4 (74.1)

•         Orders received totalled MSEK 1,929.9 (2,857.6)

Statement by the CEO
Complex market conditions prevailed for the construction and civil engineering industry in 2023. There was a major slowdown in housing construction while, despite some caution due to inflation and interest rates, the commercial market remained favourable. Despite these challenges, Zengun posted its highest turnover to date. Turnover for the year totalled MSEK 2,771, and EBITDA totalled MSEK 123. Zengun has thereby confirmed its market position in Greater Stockholm.

Sustainable social infrastructure
Forskaren in Hagastaden, which we built on behalf of Vectura, opened to its first tenants during the quarter. The building is in the middle of one of the world’s leading areas for studying life science. Opportunities for new advances will be created when talents, researchers and innovators can meet and collaborate in the same place. At Zengun, we are pleased to have contributed to Stockholm’s new innovation cluster with a landmark building like Forskaren.

We are also proud of Kvarter 1 in Haga Norra, Solna, which earned the BREEAM Byggnad 2023 distinction in November. We built this fantastic project on behalf of Fabege. The Sweden Green Building Awards are Sweden’s most prestigious award within sustainable social infrastructure. They are distributed in ten categories, where all of the nominees have demonstrated the desire and ability to contribute to the green transition.

 Excellent project quality
“PQi – Utmärkt Projektkvalitet” (Eng: Excellent project quality) is an annual quality award within the construction and property sector. It is awarded to projects that have maintained an extraordinarily high level of project quality over time, based on Best Practice for the industry. Kvarter 1 in Haga Norra won this prize as well. We set joint goals and frameworks early on with our customer Fabege for this complex project. We designed and built an office building of 40,000 square metres, with 2,200 registered workers who speak 15 different languages. Thanks to our excellent partnership with Fabege and the collaboration model we had for the project, we could maintain better schedules and calculations than those in the Construction Cost Index (Swe: Entreprenadindex). This despite a pandemic, difficulties with material deliveries and the prevailing high interest rates.

Haga Norra is also one of the projects where we carried out external site inspections. Being able to manage sites appropriately, without any major deviations, is part of Zengun’s proactive quality agenda.

Employees create opportunities
Times are tough for many in our industry right now. Our excellent results would not have been possible without the expertise, experience and motivation found at Zengun. When the production rate is high, it is especially important that we ensure that our employees feel well and that they can develop.

Zengun therefore conducts two employee surveys every year, one during the last quarter of the year. Despite the brisk pace and the often challenging assignments, our index for commitment as well as leadership has increased since the spring. I’m pleased that our rating as an attractive employer is well above the benchmark. This provides us with a lot of energy and fuel going into 2024.

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. The information was submitted for publication, through the agency of the contact person set out above, on 22 February 2024 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 2023, Zengun had sales of approximately SEK 2.8 billion and approximately 150 employees. #zengunbyggerstaden