Zengun Group AB (publ) INTERIM REPORT FOR 1 JANUARY TO 31 MARCH 2021
“Turnover and earnings for the quarter were negatively affected by weak new orders during the pandemic of 2020. It is therefore pleasing that new orders during the first quarter this year were at record highs and that the order backlog is recovering.” Mick Salonen Högberg, Managing Director and CEO
FIRST QUARTER
- Net turnover amounted to MSEK 361.8 (697.5).
- EBITDA totalled MSEK 10.3 (35.6), corresponding to an EBITDA margin of 2.8% (5.1).
- Earnings before tax amounted to a negative MSEK 6.7 (21.4).
- Operating cash flow was MSEK 17.4 (97.6).
- Orders received totalled MSEK 1,410 (537).
- The order backlog amounted to MSEK 2,130 (2,140).
Statement by the CEO
Constant development
Taking over the role of Managing Director and CEO of a company in an industry facing the knock-on effects of a pandemic has been challenging, to say the least. We are a project-centric organisation that thrives on driving projects and winning new projects as well as working hard as a group. Zengun literally translates to “the whole team”, and we are now seeing that our efforts as a team and working in close cooperation with our clients is starting to pay off. I started the year by initiating a restructure of the organisation and management group with the intention of making us better prepared for current times and the future with focus on sustainability and continuous development. We’re at our best when we’re in constant motion, something that is necessary when striving to make every project a future reference project. A close focus on customers and a high level of delivery is essential for achieving quality throughout the entire process.
First quarter
Turnover and earnings for the quarter were negatively affected by weak new orders during the pandemic of 2020. It is therefore pleasing that new orders during the first quarter this year were at record highs and that the order backlog is recovering, increasing for the first time since Q1 2019. The cash flow for the quarter was stable, with a positive operating cash flow despite the lower earnings.
New projects
During the first quarter, the Forskaren project transitioned into a phase-2 agreement together with Vectura Fastigheter. This is a fantastic and exciting project in the middle of Hagastaden, next to Nya Karolinska. We also started the extension and remodelling of a school for EQT, the Hönsfodret 1 property in Norra Hammarbyhamnen on Södermalm. We entered into a phase-1 agreement about the property in 2019 that has now resulted in a phase-2 agreement. A phase-1 agreement was also signed with Pembroke for the Kv. Hästen 21 project. I look forward to continuing our growth and development together with my colleagues and clients, and emerge from the pandemic even stronger so that we can continue building and developing the Stockholm region.
Mick Salonen Högberg
Managing Director and CEO
FOR MORE INFORMATION, PLEASE CONTACT:
Mick Salonen Högberg, Managing Director and CEO, +46 70 569 66 73
Stefan Lindh, CFO, +46 70 383 16 07
Prior to publication, this information constituted insider information. This information is of such a kind that Zengun Group AB (publ) is legally required to disclose pursuant to the EU’s Market Abuse Regulation. This information was submitted through the agency of the above contacts for publication on 26 May 2021 at 8:00 a.m. (CEST).
The Zengun Group is one of the leading construction contractors in Stockholm and carries out construction projects on behalf of well-known customers in the real estate industry. While the main focus is on commercial properties, the portfolio also includes residential projects and projects in the public sector. The Zengun Group is a complete supplier and partner, with a customer-centric approach. The Group has approximately 160 employees and net turnover in 2020 amounted to approximately SEK 2.5 billion. #zengunbuildingstockholm
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