“Our customers displayed their continued confidence in us during the quarter. Our order book and orders received are at record-high levels and we are now coming out of a period with low production rates.” Mick Salonen Högberg, Managing Director and CEO
- Net turnover amounted to MSEK 420.1 (709.9).
- EBITDA totalled MSEK 22.3 (28.7), corresponding to an EBITDA margin of 5.3% (4.0).
- Earnings before tax amounted to MSEK 6.7 (13.3).
- Operating cash flow was MSEK -18.3 (62.7)
- Orders received totalled MSEK 972 (320).
FIRST SIX MONTHS
- Net turnover amounted to MSEK 781.9 (1,407.4).
- EBITDA totalled MSEK 32.6 (64.3), corresponding to an EBITDA margin of 4.2% (4.6).
- Earnings before tax amounted to MSEK 0.0 (34.7).
- Operating cash flow was MSEK -1.0 (160.3)
- Orders received totalled MSEK 2,382 (857).
- The order book amounted to MSEK 2,673 (1,750).
STATEMENT BY THE CEO
We build for the future
It’s been difficult for a while now, both in society at large and as a company, since the rate of production has been lower than we would like. However, at Zengun we have decided to take advantage of this period to invest in the future. We are investing in our employees and in developing an approach that will create a sustainable construction industry.
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 take the long term into consideration for our employees, customers and surroundings, and are constantly developing to make each project a reference project.
Our customers displayed their continued confidence in us during the quarter. Our order book and orders received are at record-high levels and we are now coming out of a period with low production rates that stemmed from several larger project being completed during 2020 while also having several project starts postponed.
Since the spring we have worked with Fabege on the innovative project “Återhus – building buildings from buildings.” In the Haga Norra area, we are building Hållbarhetshuset (Eng: The Sustainability Building), a pilot project. The goal of the project is to reuse heavy building components, primarily steel and concrete from the demolition of existing buildings. This entails substantial environmental gains in the form of reduced carbon emissions and minimised waste from demolition and construction. This is a very interesting project to follow, as well as highly relevant – especially given the debate surrounding the UN’s climate report and Sweden’s cement supply.
However, sustainable development also includes social sustainability. We’ve partnered with Värmeverket in Bredäng to build a new “Fryshus” concept, where young people and cultural organisations collaborate with the business community. Together with the social entrepreneur Leo Razzak, who currently organises operations on the site, we intend to develop the project from the detailed development plan stage and onward.
The order book continues to be filled with major projects and call-off orders. One phase-1 agreement has transitioned into phase 2, for example, where we are helping Fabege develop Kv. Bocken 39 on Kungsgatan in central Stockholm. We have also entered an agreement for a major turnkey contract that includes remodelling and extending as well as exterior work.
Our employees are always our most important resource. They are the ones who drive our projects, build partnerships and help develop the industry. We are confident in our choice of business concept and we are investing, and believe, in a better future. After the end of the quarter we continued to strengthen management with a new Works Manager, Kajsa Flack. We will continue to build the Stockholm region, and our organisation, for the future.
Mick Salonen Högberg
Managing Director and CEO
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 27 August 2021 at 8:00 a.m. (CEST).
FOR MORE INFORMATION, PLEASE CONTACT:
Mick Salonen Högberg, Managing Director and CEO, +46 70 569 66 73
Stefan Lindh, CFO, +46 70 383 16 07