Zengun Group AB (publ) Interim Report January - March 2024
“2024 began with continued high production in our projects around Stockholm and with strengthened profitability for the company as a whole. We are pleased to collaborate with customers who are pursuing sustainable urban development and accelerating the climate transition.” Mick Salonen, President and CEO
First quarter
• Net turnover amounted to MSEK 703.8 (688.6)
• EBITDA totalled MSEK 37.5 (31.9), corresponding to an EBITDA margin of 5.3% (4.6)
• Earnings before tax amounted to MSEK 13.7 (16.4)
• Operating cash flow was MSEK 80.2 (32.9)
• Orders received totalled MSEK 1,059.7 (537.6)
• The order book amounted to MSEK 3,147.7 (3,482.2)
Statement by the CEO
2024 began with continued high production in our projects around Stockholm and with strengthened profitability for the company as a whole. We are pleased to collaborate with customers who are pursuing sustainable urban development and accelerating the climate transition. This is where Zengun is able to demonstrate its best side, become even better and develop together with pioneering customers.
Sustainability milestones during the quarter
During the first quarter, Pembroke began letting the top two floors of the Hästen 21 property, which Zengun is currently constructing in central Stockholm. The premises will be of high international standard, with a ceiling height of three metres and views of the Stockholm inlet. The project has high sustainability ambitions and the building will adhere to LEED Platinum level as well as align with WELL, to thereby improve the health and well-being of those living in and utilizing the property.
Bonnier Fastigheter also has high climate and sustainability ambitions, not least for the Portalen office project in the Hangö block, which Zengun is constructing in Södra Värtahamnen. The quarter saw the completion of one important milestone for the project, namely the major concrete casting phase of the basement level. With its 13 floors, Portalen will be the first building you see as you enter the area.
Another key first quarter milestone was the opening of the new square at the Ringen Centrum shopping mall, which Zengun developed on behalf of AMF Fastigheter. Ringen Centrum in Skanstull has now become a more open and inclusive meeting place in Södermalm.
Healthy company
Zengun wants to be Sweden’s most active and healthy company. We are committed to building our culture and our team spirit, both on and off the job. One example in the first quarter was our participation in the Stafettvasan race, which has become a highly popular tradition that promotes both physical and mental well-being among our employees.
Our employees are our most important asset and prerequisite for our ability to continue to grow. We are happy to welcome junior colleagues onto our more experienced project teams. We recently participated in industry days at Nackademin vocational college and we also accepted new students from the Royal Institute of Technology (KTH) to our trainee programme, which is an excellent way of recruiting tomorrow’s top talent.
Financial sustainability
Our values – knowledge, sustainability and collaboration – have been particularly prominent this quarter. Zengun Group AB has introduced a sustainability-linked bond framework (the “SLB Framework”) and utilised this framework to issue SLBs with maturities of four years. Bonds have been issued initially for a total nominal amount of MSEK 400, where the maximum total nominal amount is MSEK 600.
The SLB issue is one more step in our commitment to meeting our sustainability targets and ultimately to contributing to more sustainable urban development.
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 through the agency of the above contacts for publication on 22 May 2024 at 8:00 a.m. (CEST).
Driving projects drives Zengun. We operate in Stockholm and Uppsala, 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