Zengun Group AB (publ) INTERIM REPORT FOR THE FOURTH QUARTER AND FULL-YEAR 2021
“Zengun has long had its sights set on broadening its home market. We have said that we will expand with our customers – and now we are making it happen.” Mick Salonen Högberg, Managing Director and CEO
FOURTH QUARTER
• Net turnover amounted to MSEK 622.0 (521.4).
• EBITDA totalled MSEK 26.3 (-2.3), corresponding to an EBITDA margin of 4.2% (-0.4).
• Earnings before tax amounted to MSEK 9.2 (-41.7).
• Operating cash flow was MSEK -2.0 (-51.0)
• Orders received totalled MSEK 1,073 (302).
• The order book amounted to MSEK 3,244 (1,082).
JANUARY – DECEMBER
• Net turnover amounted to MSEK 1,777.1 (2,534.7).
• EBITDA totalled MSEK 81.4 (90.0), corresponding to an EBITDA margin of 4.6% (3.5).
• Earnings before tax amounted to MSEK 16.1 (6.0).
• Operating cash flow was MSEK 73.1 (63.8)
• Orders received totalled MSEK 3,967 (1,317).
STATEMENT BY THE CEO
Partnering – our model
In December, we agreed to our largest-ever single contract with regard to Haga Norra Kv. 1 in Stora Frösunda with Fabege. The contract encompasses the construction of an office building with an underground garage that has a strong environmental profile and a facade made of recycled bricks. The order volume amounts to approximately SEK 1 billion and occupancy is scheduled from the start of 2024. We are very proud of receiving renewed confidence to drive the urban development in Haga Norra in close partnership with Fabege and with a focus on sustainability.
Sustainability goals
Sustainability is a natural component of Zengun’s business model. Over the past few years, we have worked on areas including mapping emissions from our operations and identifying significant emission factors and measures. We have set relevant, long-term goals that are aligned with the climate transition we are facing. In the fourth quarter, we presented our respective sustainability goals for 2025 and 2030, with clear targets for carbon reduction and material choices. As part of our work with sustainability, we have also set long-term goals for social sustainability, which include ensuring social responsibility throughout the supply chain and promoting employee health. Our aim is to contribute to building a sustainable society and we work proactively to engage partners and subcontractors in these efforts.
High orders received and record large order book
The past year was dominated by an uncertain market and volatile material prices. Following several quarters with lower production rates, we are now back to higher turnover in the last quarter of the year. We posted sales of MSEK 622 in the fourth quarter, compared with MSEK 521 in the corresponding period last year. We ended the year with a record large order book, which means we have a confident outlook on the future.
We are broadening our home market
We continue to grow in pace with Stockholm and are broadening our home market to encompass the entire region. Västerås came first, where we have been tasked with building Alstom’s new head office, and now we have also signed contracts in Uppsala. The undertaking comprises a turnkey contract for the remodelling of Bonnier Fastigheter’s existing property Kv. Kungsängen 15:1, with one of Uppsala’s prime office locations. The contract comprises the design and construction of some 2,000 sqm and is expected to be completed in autumn 2022.
Zengun has long had its sights set on broadening its home market. We have said that we will expand with our customers – and now we are making it happen.” We have worked methodically to meet increasing demand and to safely expand operations. Our order book is at a record level and we will manage it well to ensure continued confidence. By retaining our own talent and adding strategic recruitments we are ensuring that we maintain high quality throughout the entire process, with on-time project deliveries to satisfied customers.
Mick Salonen Högberg
President and CEO
For further information, please contact:
Mick Salonen Högberg, President and 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 25 February 2022 at 8:00 a.m. (CET).
Driving projects drives Zengun. We operate in the Stockholm 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 2020, Zengun had sales of approximately SEK 2.5 billion and 180 employees. #zengunbyggerstockholm