Zengun Group AB (publ) Interim Report January – March 2023

“Despite the deteriorated market conditions, Zengun continued its strong growth with a high rate of production in the first three months of the year.” Mick Salonen, President and CEO

First quarter

•         Net turnover amounted to MSEK 688.6 (596.9)

•         EBITDA totalled MSEK 31.9 (30.4), corresponding to an EBITDA margin of 4.6% (5.1)

•         Earnings before tax amounted to MSEK 16.4 (15.8)

•         Operating cash flow was MSEK 32.9 (57.4)

•         Orders received totalled MSEK 537.6 (847.9)

•         The order book amounted to MSEK 3,482.2 (3,490.8)

Statement by the CEO

Secure position despite economy

Construction in Sweden is more expensive than it has been for many years. The annual rate of cost increases has not been this high since the 1970s. Interest rate hikes that have impacted our customers comprise the main cost driver, but rising costs for electricity, fuel and transportation have also adversely impacted prices. Several projections forecast a tough year for the construction and civil engineering industry in 2023.

Despite the deteriorated market conditions, Zengun continued its strong growth with a high rate of production in the first three months of the year. Demand remains high for commercial properties in Stockholm and the Mälardalen region, which have long been our focus areas and where we are a well-established construction contractor.

At Zengun, we prioritise our customers’ needs and how we can best meet them, and during an economic downturn, it is even more critical that we adapt and navigate based on the preconditions. Our project-centric organisation, free from heavy overheads and with short decision-making paths, engenders a stability that enables us to continue investing in our organisation. To date this year, we have welcomed another nine employees, including four trainees, who are currently working in different roles in the projects.

New talent to the sector

Skills supply poses a major challenge for the sector and we are making every effort to attract more people to the construction sector. Zengun is already heavily involved in Tekniksprånget, which aims to attract young talent to the engineering profession. In the spring, we participated in labour market days at KTH Royal Institute of Technology and the higher vocational college Nackademin, which attracted more students to our popular trainee programme. Taking our responsibility means we attract young, hungry employees who make a good complement to our more experienced and long-standing teams.

Combating crime in the labour market

Zengun applies structured efforts to combat crime and fraud in the construction sector. Our prime duties as the main contractor include ensuring compliance with laws and regulations. Accordingly, we conducted a number of site inspections in the first quarter to follow up conditions at our construction sites and to ensure that we have control over all subcontractors.

I’m pleased to see the new initiative to detect and stop work-related crime, A-krimcenter. It’s based on a Norwegian model, where state agencies better coordinate their registers and share more information with each other.

Strong financial position

Over the most recent quarters, Zengun has consistently bought back its own bonds. We continued on this path in the first quarter of the year and bought back bonds representing a nominal amount of MSEK 20, thereby reducing our gross debt and our interest expenses.

I am convinced that the best way to meet a recession is to have the courage to continue building. On summarising the quarter, we have noted continued confidence from our customers, which means we can continue to grow.

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 for publication, through the agency of the contact person set out above, on 25 May 2023 at 8:00 a.m. (CEST).


Driving projects drives Zengun. We operate in Stockholm and Mälardalen, 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 2022, Zengun had sales of approximately SEK 2.5 billion and 150 employees. #zengunbyggerstaden