“Flexibility is one of Zengun’s primary characteristics. Thanks to our strong corporate culture and all of our employees, we have been able to tune into the market’s needs and quickly adapt ourselves to tougher market conditions.” Mick Salonen Högberg, President and CEO
- Net turnover amounted to MSEK 487.0 (373.1)
- EBITDA totalled MSEK 24.0 (22.5), corresponding to an EBITDA margin of 4.9% (6.0)
- Earnings before tax amounted to MSEK 8.2 (6.9)
- Operating cash flow amounted to an outflow MSEK 43.7 (inflow: 76.0)
- Orders received totalled MSEK 1,425.5 (510.8)
- The order book amounted to MSEK 4,216.3 (2,808.8)
January – September
- Net turnover amounted to MSEK 1,726.1 (1,155.1)
- EBITDA totalled MSEK 76.5 (55.1), corresponding to an EBITDA margin of 4.4% (4.8)
- Earnings before tax amounted to MSEK 31.6 (7.0)
- Operating cash flow was MSEK 6.4 (75.1)
- Orders received totalled MSEK 2,698.0 (2,893.2)
Statement by the CEO
Continued construction in a tougher market
Market uncertainty continued to dominate the construction sector in the third quarter. Zengun is carefully following events in the operating environment, not least of which are the developments in Sweden’s cement supply – a judgement in the Cementa case is expected by the middle of December.
We have worked hard during the year to fill our order book and to continue to deliver quality to customers who advance urban development in Stockholm and the Mälardalen region. One example is Pembroke. Together, we have recently started the Hästen 21 construction project in the middle of central Stockholm, a project encompassing approximately 40,000 sqm GFA. The building has ambitious environmental requirements and will be certified Platinum v4 under LEED, which is the highest environmental certification in the market and entirely in line with our sustainability vision of building environmentally certified properties. Upon completion, the property will include workplaces, homes and retail.
Zengun continues to grow
Flexibility is one of Zengun’s primary characteristics. Thanks to our strong corporate culture and all of our employees, we have been able to tune into the market’s needs and quickly adapt ourselves to tougher market conditions.
Driving projects drives Zengun. They are always in focus. Our order book means that we are well prepared for the coming years. Zengun is growing and in September we strengthened our organisation with an additional unit led by Works Manager Erika Wiberg. We are now continuing to build the company and to recruit individuals with cutting-edge expertise.
Well prepared for the future
We also bought back our own bonds at a nominal amount corresponding to MSEK 10 during the third quarter. This allows us to reduce gross debt and thereby interest expenses. We have a strong financial position and can now reduce our interest expenses further.
The third quarter was, overall, a quarter with lower turnover due to the vacation period. Still, many of our projects continued at a rapid pace during the quarter, which is reflected in the 31% year-on-year increase in net turnover to MSEK 487. EBITDA also increased to MSEK 24. Thanks to our stable position, we look forward with confidence to remaining one of the leading actors in the market.
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 November 2022 at 8:00 a.m. (CET).
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