Zengun Group AB (publ) interim report for the period 1 january to 31 december 2019

Zengun Group AB started its operations on 24 May 2019 when the company acquired all of the shares in Zengun Group Holding AB (Corp. Reg. No. 559050–0699) and its wholly owned subsidiaries from Segulah Fund V. Financial information for the former group (Zengun Group Holding AB) has been included as a basis for comparison.

Zengun group ab (publ)

Fourth quarter

  • Net turnover amounted to MSEK 834,9.
  • EBITDA totalled MSEK 45.6.

24 may 2019–31 december 2019

  • Net turnover amounted to MSEK 1,599.3.
  • EBITDA totalled MSEK 78.5.
  • Operating cash flow was negative MSEK 25.0.

Zengun group holding ab (former group)

Fourth quarter

  • Net turnover amounted to MSEK 834.9 (610.1), up 37% or MSEK 224.0
  • EBITDA totalled MSEK 46.1 (29.8), corresponding to an EBITDA margin of 5.5% (4.9)
  • Operating cash flow was MSEK 5.5 (negative: 19.3)


  • Net turnover amounted to MSEK 2,579.6 (2,152.3), up 20% or MSEK 427.3
  • EBITDA totalled MSEK 121.9 (119.0), corresponding to an EBITDA margin of 4.7% (5.5)
  • Operating cash flow was MSEK 94.3 (11.8)

Significant events in the fourth quarter

  • In October, a turnkey agreement was signed with CA Fastigheter for the construction of a 19 storey high-rise together with an annex in Södermalm in Stockholm. Some 130 apartments are planned in the high-rise which will be ready for occupancy in autumn 2021.
  • In October, a turnkey agreement was signed with the Vision trade union for the remodelling of its headquarters on Kungsgatan in Stockholm.

Significant events after the end of the financial year

  • RA Bygg, a subsidiary of the Zengun Group, signed a contract in February for the construction of a school building together with a sports hall for Hemsö Fastighets AB.
  • In February, Zengun AB signed an agreement with Atrium Ljungberg for a remodelling and extension project at Sickla Galleria encompassing new retail and parking areas.

The Zengun Group is one of the leading construction contractors in Stockholm and carries out construction projects on behalf of well-known customers in the real estate industry. While the main focus is on commercial properties, the portfolio also includes residential projects and projects in the public sector. The Zengun Group is a complete supplier and partner, with a customer-centric approach. The Group has approximately 220 employees and net turnover in 2019 amounted to SEK 2.6 billion. #zengunbuildingstockholm

Key figures

Annual Report 2019 22 April
Interim Report January–March 14 May
Interim Report January–June 27 August
Interim Report January–September 11 November

For more information, please contact:

Sture Nilsson, Managing Director and CEO, +46 70 580 04 15
Anna-Carin Bjelkeby, CFO, +46 70 580 62 25

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 21 February 2020 at 7:30 a.m. (CET).

Statement by the CEO

A strong full year concluded with Zengun’s best quarter ever

The Zengun Group closed the year strongly with the best fourth quarter in the Group’s history. Turnover of MSEK 835 for the quarter entailed organic growth of a full 37%, at the same time as the Group’s full-year turnover of MSEK 2,580 corresponded to year-on-year organic growth of 20%. During the year, the majority of our larger projects were at phases with high rates of production.

Profitability was also good. We posted healthy and stable underlying results with strong margins for both the quarter and the year. The initiated change program aimed at strengthening the property maintenance and construction services concept as well as improving profitability at RA Bygg has continued through the fourth quarter and will also continue in 2020.

Our efforts to reduce tied-up working capital and increased focus on cash flow has delivered results. We posted satisfactory cash flow for the full year.

The order book level remains strong at a secure level for the fourth quarter. In our main segment, commercial properties, we have not noted any signs of a slowdown. We are maintaining dialogue with a number of property owners who remain firm on their ambitious plans and positive agendas. The need for efficient, modern office premises with flexible solutions and functions drives demand for the renovation and new construction of commercial properties. Similarly, the interest in environmentally-certified buildings also boosts market growth.

In the fourth quarter, we signed a phase-1 agreement with Fabege for project planning for the continued expansion of the Haga Norra city district. We are already established in the area, where we are currently running several major projects, including constructing new premises for Bilia and housing. The current phase-1 agreement mainly pertains to the extension of commercial premises.

We won two additional major assignments in the fourth quarter. For CA Fastigheter, we are now building the new Strato landmark building in Södermalm, a 19 storey high-rise with housing that is scheduled for occupancy in 2021, and we are also tasked with remodelling the Vision trade union’s headquarters on Kungsgatan in central Stockholm.

I am brimming with confidence ahead of the forthcoming year.  Our operations have a strong foundation with a broadened customer base, where several new projects will start during the year.

Stockholm, 20 February 2020

Sture Nilsson
Managing Director and CEO