“Zengun continued on its journey through the second quarter with stable orders received and a high turnover. We have noted healthy demand in the cities where we operate and the long-term relationships we have built have resulted in continued confidence and new projects.” Mick Salonen Högberg, President and CEO
- Net turnover amounted to MSEK 642,2 (420.1).
- EBITDA totalled MSEK 22.1 (22.3), corresponding to an EBITDA margin of 3.4% (5.3).
- Earnings before tax amounted to MSEK 7.7 (6.7).
- Operating cash flow amounted to an outflow of MSEK 7.3 (outflow: 18.3)
- Orders received totalled MSEK 424.6 (972.4).
- The order book amounted to MSEK 3,263.8 (2,673.0).
First six months
- Net turnover amounted to MSEK 1,239.1 (781.9).
- EBITDA totalled MSEK 52.4 (32.6), corresponding to an EBITDA margin of 4.2% (4.2).
- Earnings before tax amounted to MSEK 23.5 (0.0).
- Operating cash flow was MSEK 50.1 (outflow: 1.0)
- Orders received totalled MSEK 1,272.5 (2,382.4).
Statement by the CEO
Secure market position
“Zengun continued on its journey through the second quarter with stable orders received and a high turnover. We have noted healthy demand in the cities where we operate and the long-term relationships we have built have resulted in continued confidence and new projects.
A number of factors in the operating environment are currently impacting the construction industry, which risks slowing the production pace and delaying investment decisions. The quarter was dominated by rising inflation, higher interest rates and concern about the economy. Continued uncertainty about Sweden’s cement supply together with high material costs and component shortages further compounded the situation. While major challenges exist that should not be underestimated, our long-term outlook remains positive. Our order book and strong growth over an extended period mean we stand on a solid foundation and hold a secure position.
During the quarter, we bought back the company’s own bonds at a nominal amount corresponding to MSEK 35. The objective of the buyback was to reduce gross debt and interest expenses. These proactive initiatives have strengthened our financial position and lowered costs.
Continued confidence and new projects
Several major projects were concluded in the second quarter and a number of new projects started, including the Portalen project in södra Värtan, a phase-1 agreement with Bonnier Fastigheter. Portalen is fully aligned with our sustainability vision to develop and produce environmentally certified properties. As with many of Zengun’s projects, Portalen stands out for its ambitious environmental requirements, a high degree of material reuse and low maintenance requirements.
We were also given continued confidence for the expansion of Haga Norra during the period. The project encompasses a garage building of around 15,000 sqm that will become the logistics node for the entire area. This is the third project Fabege is developing in Haga Norra together with Zengun as general contractor.
Stable housing construction
Our focus as we expand is on healthy growth at the same time as retaining and increasing expertise. Due to stable orders received and broadening the market to the Mälardalen region, we are continuing to recruit employees.
Skills supply comprises a well-known challenge for the industry. As main contractor, we have considerable responsibility in terms of which subcontractors are awarded contracts. This is a key issue for us and our established working methods mean that we promote healthy competition and good working conditions on a daily basis.
Zengun builds for the future. Our long-term perspective and stability is a strength through troubled times. Our know-how and expertise enable us to continue creating many of the city’s foremost commercial and public-sector properties, and select residential projects.
Mick Salonen Högberg
President and CEO
For further information, please contact:
Mick Salonen Högberg, President & CEO, +46 (0) 70 569 66 73
Stefan Lindh, CFO, +46 (0) 70 383 16 07
This information is information that Zengun Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 25 August 2022 at 8:00 a.m. (CEST).
Driving projects drives Zengun. We operate in Stockholm and the Mälardalen region, 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 2021, Zengun had sales of approximately SEK 1.8 billion and 130 employees. #zengunbyggerstaden