Zengun Group AB (publ) Interim Report January - September 2024
“During the third quarter of the year, Zengun successfully completed several major projects resulting in satisfied customers and further entrustments. Project completions have resulted in a reduced production rate compared with the previous quarter but we have a stable, robust order book with a gradually increasing production rate in several of our ongoing projects.” Mick Salonen, President and CEO
Third quarter
• Net turnover amounted to MSEK 499.2 (608.2)
• EBITDA totalled MSEK 29.2 (29.0), corresponding to an EBITDA margin of 5.8% (4.8)
• Earnings before tax amounted to MSEK 14.6 (13.1)
• Operating cash flow amounted to an outflow of MSEK 29.5 (inflow: 64.2)
• Orders received totalled MSEK 938.6 (280.0)
• The order book amounted to MSEK 3,468.9 (2,850.5)
January – September
• Net turnover amounted to MSEK 1,938.9 (1,989.9)
• EBITDA totalled MSEK 111.1 (88.9), corresponding to an EBITDA margin of 5.7% (4.5)
• Earnings before tax amounted to MSEK 57.9 (41.4)
• Operating cash flow amounted to an outflow of MSEK 26.2 (inflow: 127.2)
• Orders received totalled MSEK 2,616.1 (1,207.3)
Statement by the CEO
During the third quarter of the year, Zengun successfully completed several major projects resulting in satisfied customers and further entrustments. Orders received were strong during the quarter and totalled MSEK 939. Completing a successful project is one of the most rewarding aspects of our work, but project completions also resulted in a reduced production rate compared with the previous quarter. Zengun performed well during the recession and the successive interest-rate cuts mean that market activity is increasing and the willingness to invest is on the rise. We have a stable, robust order book that increased MSEK 618 year-on-year and the production rate is gradually rising in several of our ongoing projects. This, together with our stable cash position, means that we are looking forward to a productive 2025.
15 years of Zengun
Zengun was founded 15 years ago and we have grown step by step, allowing us to retain our strong culture and our specific way of working. In September, we brought our employees and customers together with representatives from the industry and business community to recognise and celebrate the fantastic development of the company. It was a memorable event where we could proudly reflect on everything we have accomplished to date and look ahead to the next 15 years.
New projects
During the quarter, Zengun signed an agreement with Atrium Ljungberg for the remodelling of Söderhallarna. Söderhallarna has long held a natural position as an important hub in Södermalm with its workplaces, restaurants, shops, market hall and cinema. Together with Atrium Ljungberg, Zengun has driven the design and planning for the remodelling of Söderhallarna for about one year. The project has now entered its production phase, which includes exterior and interior renovations. The project has high sustainability ambitions and will be environmentally certified under the Very Good level of BREEAM-SE Bespoke.
Awarded projects
Haga Norra Kv. 1 in Solna, which Zengun built on behalf of Fabege, was nominated and awarded with the Facade of the Year award (Sw: Årets Fasad) for 2024. This is the largest office building in Sweden built with reclaimed bricks, which was a brave and strategic choice by our customer who is working hard to reduce its climate impact and to promote circular construction. The prize was awarded by Mur & Putsföretagen for the tenth consecutive year and recognises construction that supports beautiful, sustainable facades and buildings.
AMF Fastigheter’s new offices in the Mood block of central Stockholm was named Sweden’s nicest office (Sw: Sveriges snyggaste kontor) in the 2024 competition. Zengun’s subsidiary Zengun Redo was commissioned to complete the workplace with the goal of creating Sweden’s most welcoming office, for employees as well as visitors. The unique colour scheme and design was inspired by Stockholm’s urban environments and the majority of the fixtures and fittings are reused. The office is built to be sustainable over time, with flexible areas to ensure long-term usability.
Together with our customers, we are proudly creating an attractive, sustainable city.
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 November 2024 at 8:00 a.m. (CET).
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