Zengun Group AB (publ) INTERIM REPORT FOR 1 JANUARY TO 31 MARCH 2022
“We are continuing to increase our order book for the fifth quarter in a row to a new record level, demonstrating that together with suppliers, subcontractors and customers we can manage changing situations and still ensure progress in our projects.” Mick Salonen Högberg, President and CEO
FIRST QUARTER
• Net turnover amounted to MSEK 596.9 (361.8).
• EBITDA totalled MSEK 30.4 (10.3), corresponding to an EBITDA margin of 5.1% (2.8).
• Earnings before tax amounted to MSEK 15.8 (-6.7).
• Operating cash flow was MSEK 57.4 (17.4)
• Orders received totalled MSEK 847.9 (1,410.0).
• The order book amounted to MSEK 3,490.8 (2,130.0).
STATEMENT BY THE CEO
Our market position remains strong
The year 2022 began in the wake of a pandemic and was largely dominated by an uncertain environment with the war in Europe. In addition to human suffering, we are seeing lead times and price increases for materials accelerating, which has far-reaching consequences for the construction and real estate industry. Despite this, Zengun started the year strong, with turnover of MSEK 596.9 and an EBITDA of MSEK 30.4 for the first quarter of the year. We are continuing to increase our order book for the fifth quarter in a row to a new record level, demonstrating that together with suppliers, subcontractors and customers we can manage changing situations and still ensure progress in our projects.
Zengun’s market is now not only in Stockholm, but in Uppsala and Västerås as well. We are proud that we are helping our customers drive urban development in several locations in the Mälardalen region.
Sound growth and sustainable development
Zengun is growing with its projects, which requires diligent recruitment with the long term in mind. We are working deliberately for sound growth where we retain our strong team and our culture. During the first quarter of the year, we welcomed several new employees to meet future needs.
We create and retain close long-term relationships with our customers through reliable delivery. Moving forward, Zengun intends to be an appreciated partner by creating value together with our customers.
Our ambition is to realise and even exceed our customers’ sustainability targets and we work proactively in areas like circular material flows, our climate footprint, environmental certifications and social issues. During the quarter, we were pleased to see our Sustainability Manager become the new Chairperson of the Sweden Green Building Council’s regional network SGBC Öst.
Many new projects
We had several exciting projects during the first quarter. Together with Hemsö Fastigheter, we now have the ability to develop the most modern and climate-friendly upper secondary school in Uppsala. The remodelling project at Lundellska school is at the cutting edge of sustainability, with substantial focus on reuse and minimising its carbon footprint.
Zengun has also been entrusted to help develop Fisksätra in Nacka, where Stena Fastigheter will modernise the shopping mall property of approximately 8,000 sqm. To allow more people to take advantage of Fisksätra’s proximity to nature and to create a safer, more attractive residential environment, the area will be densified, public transportation will be improved and the town centre strengthened.
Our subsidiary Zengun re:do has also started renovations at Bilia in Nacka, where we have a turnkey contract to create a highly modern facility for three automobile brands. The building’s facade will have an entirely new design, which will help improve the rest of the year.
Projects drive us, and we drive projects We develop the city together with our customers.
Mick Salonen Högberg
President and CEO
For further information, please contact:
Mick Salonen Högberg, President & CEO, +46 (0) 70 569 66 73
Stefan Lindh, CFO, +46 (0) 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 24 May 2022 at 8:00 a.m. (CEST).
Driving projects drives Zengun. We operate in the Stockholm and Mälardalen, 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 2021, Zengun had sales of approximately SEK 1.8 billion and 130 employees. #zengunbyggerstaden