Zengun Group AB (publ) Interim Report January - June 2023

“In the spring, we had the good fortune to sign two new partnering agreements, with the possibility of enabling a livelier, more sustainable city.” Mick Salonen, President and CEO

Second quarter

•         Net turnover amounted to MSEK 693.2 (642.2)

•         EBITDA totalled MSEK 28.0 (22.1), corresponding to an EBITDA margin of 4.0% (3.4)

•         Earnings before tax amounted to MSEK 11.9 (7.7)

•         Operating cash flow was MSEK 30.1 (outflow: 7.3)

•         Orders received totalled MSEK 389.7 (424.6)

•         The order book amounted to MSEK 3,178.7 (3,263.8)

First six months

•         Net turnover amounted to MSEK 1,381.8 (1,239.1)

•         EBITDA totalled MSEK 59.9 (52.4), corresponding to an EBITDA margin of 4.3% (4.2)

•         Earnings before tax amounted to MSEK 28.3 (23.5)

•         Operating cash flow was MSEK 63.0 (50.1)

•         Orders received totalled MSEK 927.3 (1,272.5)

Statement by the CEO

New sustainable city districts take shape
Sustainability is a natural component of Zengun’s business model. In April, we published our Annual and Sustainability Report with a description of how we took crucial steps forward in our sustainability efforts during the preceding year. Accounting for this gives us a suitable occasion to reflect on our progress, and in 2023 we have continued on the path we chose. Turnover in the second quarter totalled MSEK 693, and EBITDA totalled MSEK 28.

In the spring, we had the good fortune to sign two new partnering agreements, with the possibility of enabling a livelier, more sustainable city. One of these projects is the phase-1 agreement for the remodelling of Söderhallarna, which we were commissioned to construct by Atrium Ljungberg. Söderhallarna, with workplaces, retail, restaurants, a cinema and a market hall, has long been an important hub in Södermalm. With this planning and design agreement, we have ensured a proper and efficient implementation of the entire contract. The project will be environmentally certified under BREEAM-SE Bespoke, level Very Good. The second project is the Kvarnstugan block in the Ursvik district of Sundbyberg, which Zengun has been commissioned to carry out by Fastighets AB Förvaltaren. A specific internal goal of Zengun prior to 2023 was a timber framed project – a goal we are now realising as a result of this project. With its central location and stylistically clean architecture, the Kvarnstugan block will become a new landmark in Ursvik.

Apart from these new assignments, we also began and concluded a number of projects within the Group during the quarter. The pile-drivers on the Hangö block in Värtan are now up and running, and we have begun laying the foundation for the entire office block on commission by Bonnier Fastigheter and Niam. We recently also completed Alstom’s new head office in Västerås, a successful project in close partnership with Stenhus Fastigheter and Tjuren Projektpartner.

A growing company
Zengun has experienced secure and stable growth since the beginning. One success factor has been the ability to retain our culture, while always maintaining a project focus. Through the organisation’s gradual growth, long-standing employees have become key ambassadors for our approach, and conveyed our culture to their new colleagues.

At Zengun, we provide our employees with tremendous opportunities for growth. That is why it is particularly gratifying to see two of our employees on the latest Byggindustrin list of young and rising talents in the construction industry. We want to be part of bringing more driven individuals into the construction sector, which is particularly important for remedying the skills shortage.

Ulf Jonsson, one of Zengun’s founders and a former CEO of Zengun AB, recently took over the role as Chairman of the Board of Zengun Group AB (publ). Ulf Jonsson has sat on the Board of Directors since the company’s beginning, and succeeded Jan Örnevik, who was Chairman of the Board for several years. I am pleased that Ulf is taking over as Chairman and look forward to continuing our close collaboration. As one of the founders, Ulf has made his mark on Zengun, and together we will continue to develop the company.

Strong cash position
We have bought back our bonds once again, thereby reducing our gross debt and interest expenses. During the quarter, we bought back the company’s own bonds at a nominal amount corresponding to MSEK 25, which was made possible by a strong cash position.

Zengun continues to build for the future, and we are now looking ahead to an exciting autumn with several attractive projects.

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 24 August 2023 at 8:00 a.m. (CEST).

Driving projects drives Zengun. We operate in 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 2022, Zengun had sales of approximately SEK 2.5 billion and 150 employees. #zengunbyggerstaden