Interim / Quarterly Report • Aug 31, 2023
Interim / Quarterly Report
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Wästbygg Gruppen AB (publ) January – June 2023
• Due to restructuring costs and write-downs in ongoing projects and of the company's assets, the Wästbygg Group announced that effects totalling SEK -299 million will be charged to the profit for Q2. Due to the negative profit, and to the company's forecast that the KPI interest coverage ratio would not be achieved, the Wästbygg Group initiated a written procedure with the company's green bondholders to renegotiate the terms of the bond. The written procedure will be completed by 31 August 2023 at the latest.
In the second quarter, we took difficult but necessary decisions to adapt the Wästbygg Group's business to a persistently challenging market. We conducted an analysis of ongoing projects and of the group's assets, which resulted in write-downs. Furthermore, restructuring carried out in the second quarter led to staff cutbacks. With these initiatives behind us, our organisation is now dimensioned to the current and projected future scope of our business. We have also ensured that our assessments of the finances of ongoing products and the valuation of our assets are based on correct input values, taking into account projected future market trends.
The costs of the initiatives carried out have been charged to the profit totalling SEK -299 million for the second quarter. However, most of the effects will not affect the group's future cash flow, and our equity ratio remains strong.
Retaining the trust of our bondholders and lenders is a matter of priority for us. In August, we initiated a written procedure to garner bondholders' consent to adjust the terms of our green bond. As the response deadline is 31 August, we cannot yet report on how the bondholders responded to the proposal.
Market activity increased in the second quarter, affecting the group's order intake. We signed new contracts worth over SEK 1 billion. As a result, our order backlog remains strong and stable. In addition, numerous deals were finalised at the start of the third quarter, meaning that several interesting projects are planned to start in all our business areas this autumn.
The SEK 1.7 billion project for H2 Green Steel has not yet been included in our order intake as we are awaiting final confirmation that their financing has been granted.
Rises in construction material prices have posed a challenge for the entire construction industry since early 2022. Due to the long duration of many of our ongoing projects, a large proportion of our purchases took place in a different cost situation to when the original calculation was made, which has resulted in lower project margins. Thanks to efficient, well-founded calculations, together with a certain stabilisation of costs, we now see opportunities for improved profitability in our newly signed projects. In the coming quarters, we will also complete and hand over several development projects and evaluate the possibility of selling certain project properties. Our intention is to reduce the company's debt ratio as these initiatives are carried out, resulting in a gradual reduction of our interest expenses.
We remain confident that the three business areas that comprise our core business, in which we have long experience, will be the key to generating good profitability and healthy growth over time. The restructuring and analysis of our business that we have recently carried out open up opportunities to improve our profitability in the long term. We will continue to focus on restoring profitability in our operations and winning new contracts. Our order intake of over SEK 1 billion in Q2 is an indication of an increase in market activity and of our ability to offer the right products.
Jonas Jönehall CEO, Wästbygg Gruppen AB
| SEGMENT REPORTING 1 | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
Jan-Dec 2021 |
Jan-Dec 2020 |
Jan-Dec 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Financial key ratios | |||||||||
| Revenue | 1,358 | 1,499 | 2,737 | 2,682 | 5,849 | 5,794 | 3,818 | 3,801 | 3,905 |
| Operating profit | -262 | 65 | -239 | 95 | -246 | 88 | 277 | 254 | 192 |
| Operating margin, % | -19.3 | 4.3 | -8.7 | 3.5 | -4.2 | 1.5 | 7.3 | 6.7 | 4.9 |
| Profit/loss after tax | -239 | 73 | -216 | 114 | -199 | 131 | 290 | 268 | 187 |
| Balance sheet | 4,511 | 4,401 | 4,511 | 4,401 | 4,511 | 4,149 | 4,226 | 2,872 | 1,893 |
| Equity/assets ratio, % | 35 | 42 | 35 | 42 | 35 | 45 | 44 | 57 | 31 |
| Return on equity, % | -12 | 14 | -12 | 14 | -12 | 7 | 17 | 24 | 35 |
| Operating capital | 1,771 | 1,774 | 1,771 | 1,774 | 1,771 | 1,400 | 1,225 | 2 800 | 177 |
| Interest-bearing net cash (+) / net debt (-) | 150 | 314 | 150 | 314 | 150 | 849 | 794 | 2 877 | 129 |
| Cash flow from operating activities | -5 | -409 | -432 | -467 | -272 | -307 | -137 | -95 | -73 |
| Equity related key ratios 3 | |||||||||
| Earnings per share , SEK | -7.37 | 2.27 | -6.68 | 3.52 | -6.16 | 4.05 | 8.94 | 10.75 | 8.15 |
| Equity per share, SEK | 48.70 | 56.66 | 48.70 | 56.66 | 48.70 | 57.11 | 56.87 | 50.92 | 25.78 |
| Number of shares at the end of the period (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,591 | 32,340 | 22,950 |
| Average number of shares (thousands) | 32,341 | 32,341 | 32,341 | 32,465 | 32,341 | 32,402 | 32,474 | 24,913 | 22,950 |
| IFRS 1 | |||||||||
| Financial key ratios | |||||||||
| Revenue | 1,485 | 1,304 | 2,692 | 2,351 | 5,522 | 5,181 | 3,949 | 3,620 | 3,889 |
| Operating profit | -204 | 20 | -199 | 10 | -259 | -50 | 235 | 223 | 220 |
| Operating margin, % | -13.7 | 1.5 | -7.4 | 0.4 | -4.7 | -1.0 | 6.0 | 6.2 | 5.7 |
| Profit/loss after tax | -185 | 26 | -185 | 26 | -228 | -17 | 241 | 234 | 215 |
| Balance sheet | 4 868 | 4 457 | 4 868 | 4 457 | 4 868 | 4 467 | 4 101 | 3 170 | 2 144 |
| Equity/assets ratio, % | 28 | 37 | 28 | 37 | 28 | 36 | 43 | 50 | 27 |
| Return on equity, % | -15 | 6 | -15 | 6 | -15 | -1 | 14 | 22 | 43 |
| Operating capital | 2,373 | 2,142 | 2,373 | 2,142 | 2,373 | 1,956 | 1,336 | 2,1,010 | 270 |
| Interest-bearing net cash (+) / net debt (-) | -1,176 | -603 | -1,176 | -603 | -1,176 | -556 | 151 | 2 252 | -7 |
| Cash flow from operating activities | -144 | -546 | -799 | -792 | -898 | -891 | -319 | -237 | -63 |
| Equity related key ratios 3 | |||||||||
| Earnings per share , SEK | -5.74 | 0.80 | -5.71 | 0.81 | -7.05 | -0.53 | 7.42 | 9.39 | 9.40 |
| Equity per share, SEK | 41.82 | 50.66 | 41.82 | 50.66 | 41.82 | 49.25 | 53.62 | 49.17 | 24.81 |
| Number of shares at the end of the period (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,591 | 32,340 | 22,950 |
| Average number of shares (thousands) | 32,341 | 32,341 | 32,341 | 32,465 | 32,341 | 32,402 | 32,474 | 24,913 | 22,950 |
| OPERATIONAL KEY RATIOS | |||||||||
| 3,850 | |||||||||
| Order intake Order backlog |
1,180 4,566 |
1,591 6,818 |
1,508 4,566 |
2,936 6,818 |
3,578 4,566 |
5,006 5,754 |
5,456 6,572 |
3,232 3,201 |
3,752 |
SEK million unless otherwise stated. For KPI definitions, see page 30.
The economic situation in Sweden continues to be challenged by high inflation. This means there is a significant risk that the Riksbank will implement at least one more interest rate hike this year, from the current level of 3.75 percent. However, production costs have dropped sharply in the past twelve months, a key underlying factor for CPIF. Energy prices have also fallen, and the risk of prices skyrocketing this winter is reduced by well-filled natural gas reserves in Europe.
At present, however, inflation is having a dampening effect on household consumption and creating a tough investment climate. Swedish households also have a relatively high level of debt, and many are on variable interest rates. This means that every interest rate hike has a rapid impact.
Construction investments are negatively affected by two years of soaring construction material prices. This, together with restrictive monetary policy, makes it more difficult to calculate investments in new construction. Falling housing prices and economic uncertainty also contribute to the weak conditions. Industrial investment in machinery is also adversely affected by higher costs and weaker demand, which negatively impacts companies' profitability and investment ability. However, the situation for industry is relatively positive. Production is buoyed by continuing healthy order intakes, while the export industry is bolstered by a weak SEK. Nevertheless,
order intakes are now showing signs of weakening, although considering that the forecasts indicate a mild recession in the wider market, there is no great risk that we will see a strong decline in the sector.
Public finances are in good shape, and several years of strong profits have resulted in solid municipal finances. This creates economic strength and resilience in the current climate marked by rising unemployment, interest rate hikes and surging pension spending.
Total initiated building construction investment in the Wästbygg Group's three business areas dropped by 9 percent in 2022 at a national level, with the strongest decline noted in the Residential business area. The outcome for Q1 this year was nearly 30 percent below the investment volume for the same period in 2022. The forecast is in line with this outcome, pointing to a decrease of 25 percent. This forecast has not changed since the previous report in March. The largest decline is expected in the Residential business area, while the decrease in the Commercial business area may be marginal.
The trend in these sectors will likely bottom out next year, and a clear upturn is expected in 2025 as interest rates drop once again and demand recovers.
Information compiled by NAVET Analytics.
The Wästbygg Group is a construction and project development company with a clear presence in the most rapidly expanding markets in Sweden. The company was founded in Borås in 1981. Wästbygg has offices in twelve cities in Sweden and via the group company Logistic Contractor in our neighbouring Nordic countries of Norway, Denmark and Finland.
We operate in three business areas: Residential, Commercial – which includes community service properties – and Logistics and Industry, areas in which we have strong expertise and long experience. We also work with project development in each business area, that is from land acquisition/allocation to completed properties.
A selection of ongoing and completed projects are presented on our website, group.wastbygg.se.
The Wästbygg Group drives the development of sustainable living environments, where people want to work and live. We take our mission as community builders very seriously. Within our area of activity, we want to contribute to a more sustainable society – ecologically, socially and economically – and thereby improve people's living environments.
Environmentally certified buildings are a way to safeguard the future. We have extensive experience of building according to the most common certification systems in the Swedish market: Svanen, Miljöbyggnad, Breeam and Green Building. We are also certified according to the Nordic Ecolabel Svanen, which means that we have the right to label our self-developed properties with the Nordic Ecolabel Svanen.
Since the mid-1990s, we have focused on developing our sustainability efforts. Today, we use a comprehensive digital management system with detailed procedures and schedules that ensure quality, environmental care and occupational health and safety in our projects.
Wästbygg Entreprenad, Rekab Entreprenad and Logistic Contractor are certified according to ISO 9001 and 14001. Wästbygg Entreprenad is also certified according to ISO 45001.
A description of the company's business model can be found in the annual report for 2022.
For key ratio definitions, see page 30.
The Wästbygg Group's Annual Report and Sustainability Report were published in Q1, and can be downloaded from group.wastbygg.se. The Sustainability Report gives further details on the company's performance with regard to achieving its overarching goal of creating sustainable business.
The Wästbygg Group's green framework qualifies the company for green labelling of its share and debt instruments. Reporting on the greenness of our revenues, operating expenditures, investments and order backlog improves transparency regarding the company's climate commitments. The framework also serves as an internal control tool that helps us make more sustainable business decisions. The diagram at the side of the page shows the development since we began quantifying the proportions
In spring 2023, Cicero Shades of Green completed its audit of the Wästbygg Group's green framework for the 2022 financial year. Once again, we gained a rating of Excellent in sustainability management.
As part of our ongoing commitment to strengthening our sustainability efforts, we carried out a review in 2023 of the implementation of our green framework. As a consequence of this review, the previously published results for green shares have been adjusted; see the adjacent table.
The total proportion of women in the Group, the proportion of female senior executives and female board members is reported quarterly. In addition, the proportion of employees with foreign backgrounds is reported every six months.
Sick leave is reported quarterly on a rolling 12-month basis and was 3.96 percent for the most recent period.
2 Estimated by definition in Wästbygg Group's Green Finance Framework.
| SICK LEAVE (%) | 2019 | 2020 | 2021 | 2022 | Jun 2023 |
|---|---|---|---|---|---|
| Sick leave total | 3.03 | 2.80 | 2.71 | 4.09 | 3.96 |
The Wästbygg Group's order intake for the first six months was SEK 1,508 million. The negative economic trend has significantly impacted the construction market, primarily in residential construction. A relatively large number of requests for tender documents are being issued in both Commercial and Logistics and Industry, but the high cost situation is causing projects to be postponed. Competition continues to be higher than usual as many operators in the industry need to increase their order intake.
The order backlog was SEK 4.6 billion as of 30 June. This is marginally lower than at the end of Q1, which means that the company's order intake in Q2 was on a par with the level of implementation in ongoing projects. Revenues up until 30 June were well on a par with the same period in 2022.
The order backlog is distributed over the group's three business areas but continues to be slightly weighted towards Commercial, primarily community service properties. The clients here are largely in the public sector, which creates security in terms of solvency.
| ORDER INTAKE Total |
Apr-Jun 2023 1,180 |
Apr-Jun 2022 1,591 |
Jan-Jun 2023 1,508 |
Jan-Jun 2022 2,936 |
Jul-Jun 2022-23 3,578 |
Jan-Dec 2022 5,006 |
13 19 68 |
Distribution of order intake per business area Jan-Jun 2023 (%) |
|---|---|---|---|---|---|---|---|---|
| ORDER INTAKE Total |
30 Jun 2023 4,566 |
30 Jun 2022 6,818 |
31 Dec 2022 5,754 |
26 41 33 |
Distribution of order backlog per business area 30 June 2023 (%) |
SEK million, segment reporting
Wästbygg Group's seasonal variations are mainly linked to order intake and revenue.
The level of order intake is usually higher during Q2 and Q4. This is explained by the fact that many customers want to conclude negotiations on new projects before the holiday period begins or before the end of the year.
The number of production days is lower during the third quarter of the year, when the holiday period occurs, which is reflected in both revenue and order intake.
COLOUR CODING:
Residential Commercial Logistics and industry
All amounts related to our business areas are given in SEK million unless otherwise stated.
The Wästbygg Group builds apartment buildings for private and municipal clients. The company also develops and constructs rental apartments and tenant-owned apartments. The residential property market slumped markedly in the first six months of the year. In the market as a whole, significantly fewer residential projects were started than a few years ago. This was reflected in the Wästbygg Group's order intake and ongoing production. We had 1,394 apartments in production as per 30 June, compared with 2,085 at the same time last year. The backlog almost halved during the same period.
In ongoing residential projects, there is currently a clear preponderance of rental apartments, with municipal housing companies as the main clients. This category accounts for nearly half of the number of apartments in production.
Our goal is for the proportion of self-developed residential projects to reach about 50 percent over time, measured on the basis of revenue. This goal was achieved in the period
January–June, with several major self-developed residential projects either in production or completed during Q2. However, the proportion of these projects will decrease going forward, as further self-developed projects will be completed later in the year. The company deems that, given the current situation, the conditions are not right for starting additional self-developed residential projects before the trend turns. Building rights in Kävlinge were sold as part of efforts to optimise our portfolio of self-developed projects.
Revenues amounted to SEK 870 million for the six-month period, an increase of 10 percent on 2022. The business area reported negative earnings of SEK -73 million (36). Interest rate hikes impacted financing costs for self-developed projects in production, and sales of apartments slowed down. The profit was also impacted by costs related to restructuring and staff cutbacks, as well as by write-downs in ongoing projects.
| REVENUE AND PROFIT | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue | 430 | 434 | 870 | 790 | 1,858 | 1,778 |
| - of which construction | 194 | 195 | 410 | 350 | 778 | 718 |
| - of which project development | 236 | 239 | 460 | 440 | 1,081 | 1,061 |
| Profit | -68 | 12 | -73 | 36 | -59 | 50 |
| 2 500 | |||||||
|---|---|---|---|---|---|---|---|
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
2 000 | |
| Order intake | 148 | 197 | 216 | 612 | 966 | 1,362 | 1 500 |
| Share of the group's total as a percentage |
13 | 12 | 14 | 21 | 27 | 27 | 1 000 |
| 500 | |||||||
| 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
0 Q3 Q4 Q1 Q2 |
||||
| Order backlog | 1,202 | 2,061 | 1,863 | 2022 2023 | |||
| Share of the group's total as a percentage |
26 | 30 | 32 | Order intake Order backlog |
| PRODUCTION, |
|---|
| NO OF APARTMENTS |
| Completed during the second quarter |
346 |
|---|---|
| Ongoing 30 June | 1,394 |
| - of which construction | 793 |
| - of which project development | 601 |
| Of which | |||||
|---|---|---|---|---|---|
| Project | Status | No of apts |
Sold/ booked |
Reserved | Comple tion |
| Soluret, Malmö | Completed | 45 | 45 | 2023 | |
| Älgoxen, Umeå | Production | 30 | 27 | 2023 | |
| Hökälla Ängar, phase 2, Gothenburg |
Production | 36 | 36 | 2023 | |
| Slottshusen, Täby* | Production | 89 | 70 | 3 | 2023 |
| Tuvebo Glashytta, Gothenburg Production | 45 | 25 | 1 | 2023 | |
| Cityterrassen, Malmö | Production | 174 | 89 | 1 | 2024 |
| Tjärleken phase 1 (brf Tjäran), Norrtälje |
Production | 50 | 25 | 2 | 2024 |
| Total | 469 | 317 | 7 |
*Phase 1 was completed during Q2.
| Project | Status | No of apts |
Acquired by | Comple tion |
|---|---|---|---|---|
| Kv Trädgårn, Svedala | Completed | 53 | Trianon | 2023 |
| Journalen 1, Malmö | Production | 177 | Lansa Fastigheter | 2024 |
| Total | 230 |
The Commercial business area primarily builds retail properties, offices and community service properties. Most of the projects are currently contract assignments, but the company's project portfolio also includes commercial development projects.
The Commercial business area covers a broad spectrum of project types, for which demand varies. Demand for community service properties remains strong, and there are many potential projects in the market, primarily for public sector clients. There is also some demand for small production facilities and warehouses. On the other hand, demand for new retail buildings remains lower .
As a result of continued strong order intakes, the business area reported revenues of SEK 916 million (908) for the six-month period, which was on a par with 2022. Profit was
SEK -38 million (-5) and was impacted by costs related to restructuring and staff cutbacks, as well as by write-down of profits in projects. Some bankruptcies among our subcontractors also negatively affected the business area's profit.
Due to the discontinuation of the group company Inwita, a land allocation for a preschool in Trelleborghas been returned to Trelleborg Municipality as the conditions are currently not right for starting production of that project.
The order intake for the Commercial business area was nearly SEK 2 billion as per 30 June, and has been further strengthened since the end of the period.
| REVENUE AND PROFIT | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue | 424 | 492 | 916 | 908 | 1,936 | 1 ,928 |
| - of which construction | 424 | 492 | 916 | 905 | 1,937 | 1,926 |
| - of which project development | 0 | 0 | 0 | 3 | -1 | 2 |
| Profit | -53 | 2 | -38 | -5 | -27 | 6 |
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Order intake | 226 | 379 | 397 | 1,227 | 840 | 1,670 |
| Share of the group's total as a percentage |
19 | 24 | 26 | 42 | 23 | 33 |
| 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
|
|---|---|---|---|
| Order backlog | 1,870 | 2,891 | 2,383 |
| Share of the group's total as a percentage |
41 | 42 | 41 |
| Completed during the first quarter |
45,423 |
|---|---|
| Ongoing 30 June | 119,967 |
| - of which construction | 117,167 |
| - of which project development | 2,800 |
Order intake Order backlog
Q3 Q4 Q1 Q2 2022 2023
Operations in the Wästbygg Group's Logistics and Industry business area are conducted in the group company Logistic Contractor, with operations in Sweden, Norway, Denmark and Finland. The company specialises in developing and building large logistics and industrial facilities designed for rational handling and large-scale operations in logistics and light manufacturing.
The Swedish logistics market is less strong than previously. There is a certain caution on the part of investors, and it is taking longer than usual to rent out logistics premises. However, there are still many potential projects in the market, although contracts are often taking longer to conclude. A similar situation prevails in the neighbouring Nordic countries. On the industrial side, it is primarily in northern Sweden that the market is being cultivated. The contract with H2 Green Steel in Boden is an important milestone in efforts to establish Logistic Contractor in the region. Discussions are also under way with other players in the region. However, these only regard large projects with a timeline of several years.
The goal is for 50 percent of revenue in this business area to come from self-developed projects over time. During the first half of 2023, 38 percent of revenues were generated from project development. Due to recent market trends, most of the revenues in this business area will likely be generated from contract assignments for some time to come.
Revenues for the six-month period amounted to SEK 948 million, which is on a par with the same period in the previous year. However, profit was negative, SEK -115 million (83) due to further provisions having been made for a completed project in Denmark, as well as to write-downs of earlier valuations of two self-developed logistics facilities as a result of higher market yields. These facilities were completed earlier in the year. They have not yet been sold, but are fully rented out on multi-year contracts.
The business area saw an order intake of SEK 895 million in the first six months. This does not yet include the contract with H2 Green Steel, which is conditional upon H2 Green Steel being granted financing for the project.
• A contract was signed with LogiDev to construct a 21,000 sqm logistics facility in Uppsala. The order value is SEK 150 million.
| REVENUE AND PROFIT | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue Sweden | 463 | 523 | 871 | 868 | 1,908 | 1,905 |
| Revenue abroad | 40 | 50 | 77 | 116 | 144 | 183 |
| Revenue | 503 | 573 | 948 | 984 | 2,052 | 2,088 |
| - of which construction | 319 | 390 | 588 | 686 | 1,282 | 1,379 |
| - of which project development | 183 | 184 | 359 | 299 | 770 | 709 |
| Profit | -131 | 66 | -115 | 83 | -142 | 56 |
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Order intake | 806 | 1,015 | 895 | 1,097 | 1,772 | 1,974 |
| Share of the group's total as a percentage |
68 | 64 | 59 | 37 | 50 | 39 |
| 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
|
|---|---|---|---|
| Order backlog | 1,494 | 1,866 | 1,508 |
| Share of the group's total as a percentage |
33 | 27 | 26 |
| Completed during the second quarter |
158,000 |
|---|---|
| Ongoing 30 June | 289,500 |
| - of which construction | 209,500 |
| - of which project development | 80,000 |
| Location | Type | Area sqm |
|---|---|---|
| Gardermoen Nord Næringspark, Ormlia, Norway | Acquisition | 266,000 |
| Holmestrand Næringspark, Holmestrand, Norway | LOI for joint venture | 40,000 |
| Bastukärr industrial area, Sipoo, Finland | Acquisition | 19,500 |
| Total | 325,500 |
AS OF 30 JUNE 2023
| Total area | Est. start of | Estimated | ||||
|---|---|---|---|---|---|---|
| Project, municipality | Type | No of apts | (sqm) | Phase | production | completion |
| Alliero, Sundsvall* | Self owned/Commercial | 80 | 6,512 | ZP in effect | 2025 | 2027 |
| Almen, Umeå | Self owned | 200 | 13,569 | Ongoing work ZP | 2024 | 2030 |
| Borstahusen town houses kv Salt, Landskrona* | Self owned | 12 | 1,440 | ZP in effect | 2024 | 2025 |
| Borstahusen, Landskrona* | Self owned | 46 | 3,851 | ZP in effect | 2024 | 2026 |
| Citadellsfogen, Malmö* | Rental | 70 | 4,850 | ZP in effect | 2027 | 2028 |
| Citadellsfogen, Malmö* | Self owned | 70 | 4,850 | ZP in effect | 2027 | 2029 |
| Guldskrinet, Umeå* | Self owned/Rental | 100 | 7,500 | Ongoing work ZP | 2024 | 2027 |
| Hökälla Höjd, Gothenburg | Self owned | 42 | 3,276 | ZP in effect | 2024 | 2026 |
| Kv Kust, Ängelholm | Self owned | 78 | 6,433 | ZP in effect | 2024 | 2026 |
| Ledamoten, Malmö | CSP | 0 | 2,900 | ZP in effect | 2023 | 2024 |
| Lilla Essingen Parkhuset, Stockholm | Self owned | 24 | 1,849 | ZP in effect | 2025 | 2027 |
| Lilla Essingen Strandhusen, Stockholm* | Self owned | 74 | 6,032 | ZP in effect | 2025 | 2027 |
| Nämnden (Sorgenfri multihus), Malmö | Rental/Commercial | 60 | 4,645 | ZP in effect | 2024 | 2026 |
| Play, Malmö* | Commercial | 0 | 13,505 | ZP in effect | 2025 | 2027 |
| Skarpnäck preschool, Stockholm | CSP | 0 | 860 | ZP in effect | 2027 | 2028 |
| Skarpnäck, Stockholm | Rental | 124 | 5,659 | ZP in effect | 2026 | 2028 |
| Solberga, Stockholm* | Self owned | 35 | 4,025 | No ZP | 2028 | 2029 |
| Solvalla hotel, Stockholm* | Hotel | 0 | 6,900 | No ZP | 2028 | 2030 |
| Solvalla youth housing, Stockholm* | Rental | 120 | 4,115 | No ZP | 2028 | 2030 |
| Sparreallén, Borås | Commercial | 0 | 3,820 | ZP in effect | 2024 | 2025 |
| Strandängen 2, town houses Falkenberg* | Self owned | 40 | 3,500 | Ongoing work ZP | 2025 | 2026 |
| Svandammsplan, Stockholm* | Self owned | 53 | 3,010 | No ZP | 2027 | 2028 |
| Syrenen, Umeå | Self owned/Commercial | 80 | 7,270 | Ongoing work ZP | 2025 | 2028 |
| Tjärleken phase 2, brf Leken, Norrtälje | Self owned | 61 | 5,590 | ZP in effect | 2025 | 2026 |
| Tröinge rastplats, Falkenberg* | Commercial | 0 | 10,400 | ZP in effect | 2024 | 2025 |
| Vallastråket, Stockholm* | Self owned | 78 | 5,595 | ZP in effect | 2026 | 2028 |
| Vårbergsvägen, Stockholm* | Self owned | 76 | 5,370 | ZP in effect | 2026 | 2028 |
| Västerport, Varberg* | Hotel | 0 | 18,250 | DP stoppad | 2026 | 2029 |
| Västra Roslags-Näsby, Täby* | Self owned | 40 | 2,951 | ZP in effect | 2025 | 2027 |
| Årsta etapp 2n, Stockholm* | Self owned | 237 | 14,503 | ZP in effect | 2032 | 2034 |
| Årsta etapp 4a, Stockholm* | Self owned | 68 | 5,661 | Ongoing work ZP | 2029 | 2031 |
| Årsta etapp 4b, Stockholm* | Rental | 231 | 11,786 | Ongoing work ZP | 2029 | 2031 |
| Åseberget, Kungälv* | Self owned | 150 | 10,000 | Ongoing work ZP | 2028 | 2030 |
| Överby Hälsa* | Commercial | 0 | 2,630 | ZP in effect | 2024 | 2025 |
| Totalt | 2,249 | 213,107 |
15
* Options, acquisitions have not yet been made.
ZP = Zoning plan
SEGMENT REPORTING
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Revenue | 1,358 | 1,499 | 2,737 | 2,682 | 5,849 | 5,794 |
| Costs in production | -1,523 | -1,353 | -2,791 | -2,417 | -5,729 | -5,355 |
| Gross profit/loss | -166 | 146 | -54 | 265 | 120 | 439 |
| Sales and administration costs | -106 | -82 | -196 | -173 | -382 | -359 |
| Other operating revenue | 12 | 2 | 14 | 4 | 19 | 9 |
| Other operating costs | -2 | -1 | -3 | -1 | -4 | -2 |
| Operating profit | -262 | 65 | -239 | 95 | -246 | 88 |
| Profit/loss from financial items | ||||||
| Profit shares from joint ventures and associated companies | -4 | 0 | -4 | 0 | -5 | -1 |
| Financial revenue | 17 | 7 | 26 | 16 | 50 | 40 |
| Financial costs | -26 | -12 | -37 | -24 | -62 | -49 |
| Profit after financial items | -275 | 60 | -254 | 87 | -263 | 78 |
| Change in value of investment properties | -10 | 0 | -10 | 0 | -10 | 0 |
| Profit before tax | -285 | 60 | -264 | 87 | -273 | 78 |
| Taxes | 46 | 13 | 48 | 27 | 75 | 54 |
| Profit for the period | -239 | 73 | -216 | 114 | -199 | 131 |
| Profit relating to: | ||||||
| - the parent company's shareholders | -239 | 73 | -216 | 114 | -199 | 131 |
| - holdings without controlling influence | 0 | 0 | 0 | 0 | 0 | 0 |
| Earnings per share, SEK* | -7,37 | 2,27 | -6,68 | 3,52 | -6,16 | 4,05 |
| Number of shares at the end of the period (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 |
| Average number of shares (thousands) | 32,341 | 32,341 | 32,341 | 32,465 | 32,341 | 32,402 |
| THE GROUP'S REPORT ON COMPREHENSIVE INCOME | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Profit for the period | -239 | 73 | -216 | 114 | -199 | 131 |
| Other comprehensive income that can be transferred to the income statement |
||||||
| Currency difference when translating foreign operations | -3 | 0 | -3 | 1 | -6 | -2 |
| Comprehensive income for the period | -242 | 73 | -219 | 115 | -205 | 129 |
| Total result attributable to: | ||||||
| - the parent company's shareholders | -242 | 73 | -219 | 115 | -205 | 129 |
| - holdings without controlling influence | 0 | 0 | 0 | 0 | 0 | 0 |
All amounts in financial reports and notes are given in SEK million unless otherwise stated.
Segment reporting relates to financial reports based on accounting principles for segments. See note 2 for further information.
As the amounts are rounded to the nearest SEK million, the tables do not always sum up.
* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately. The change in the number of shares during the period is attributable to the structure of the acquisition of Rekab Entreprenad AB. No decisions have been taken regarding a new issue or issue of new shares. When all buybacks and transfers of consideration shares have taken place, the number of shares will again correspond to the number of registered shares. See page 31 for further information about the number of shares.
Revenues amounted to SEK 1,358 million (1,499) in Q2, which was a slight decrease year-on-year. The difference in revenue is primarily attributable to the lower order backlog. There is currently no shortage of either materials or resources, and the company maintained the desired level of project implementation.
Various factors impacted profit negatively, and the operating profit for Q2 was SEK -262 million (65). Due to the current market situation, the company has conducted write-downs of the expected financial outcomes of projects, as well as made additional provisions, totaling approximately SEK -200 million. Furthermore the company's current assets have been written down by SEK -64 million. These one-off write-downs will have only a limited effect on the company's future cash flow. The operating result for Q2 was also impacted by restructuring costs due to the staff cutbacks that have been implemented; see under the heading Personnel.
In addition to the above, the value of investment properties has been written down by SEK -10 million, which impacted profit before tax.
Profit after tax was SEK -239 million (73), equivalent to earnings per share of SEK -7.37 (2.27). The operating margin was -19.3 percent (4.3).
The order intake in Q2 amounted to SEK 1,180 million (1,591). Two large logistics projects represented a sizeable proportion of the order intake, although additional contracts were signed in all three business areas. The order backlog stood at SEK 4,566 million (6,818) as of 30 June, roughly the same level as at the end of Q1. The contract worth SEK 1.7 billion that the group company Logistic Contractor signed with H2 Green Steel in early May is not included in the order backlog, since the contract term related to H2 Green Steel's financing of the project has not yet been met.
Revenues for the six-month period were on a par with the previous year at SEK 2,737 million (2,682). Operating profit stood at SEK -239 (95).
Profit after tax amounted to SEK -216 million (114), corresponding to earnings per share of -6.68 (3.52). The operating margin was -8.7 (3.5).
The total order intake was SEK 1,508 million (2,936). After weak sales at the start of the year, a significantly stronger order intake was reported for Q2.
Positive tax was reported for the period January – June, due to a negative tax result as well as non-taxable revenues. The item also includes deferred tax.
Due to the severely weakened economy, notice was given in May that approximately 70 positions in the group would be terminated. Trade union negotiations have been completed and the workforce will gradually decrease over the coming months as the notice periods for the announced redundancies expire.
The Wästbygg Group had 595 employees as per 30 June, compared to 597 at the start of the year. The Wästbygg Group had 569 employees a year ago.
SEGMENT REPORTING
| ASSETS | 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
|---|---|---|---|
| Fixed assets | |||
| Intangible fixed assets | |||
| Goodwill | 428 | 428 | 428 |
| Other intangible fixed assets | 34 | 35 | 34 |
| Total | 462 | 463 | 462 |
| Tangible fixed assets | |||
| Investment properties | 65 | 75 | 75 |
| User rights assets | 33 | 32 | 35 |
| Inventory, tools and installations | 3 | 5 | 4 |
| Total | 101 | 112 | 114 |
| Financial fixed assets | |||
| Shares in joint ventures and associated companies | 1 | 2 | 1 |
| Deferred tax receivables | 155 | 82 | 108 |
| Non-current financial assets | 42 | 39 | 41 |
| Total | 198 | 123 | 150 |
| Total fixed assets | 761 | 698 | 726 |
| Current assets | |||
| Self-developed properties | 345 | - | - |
| Development properties, etc. | 347 | 255 | 293 |
| Accounts receivable | 706 | 628 | 464 |
| Accrued but not invoiced | 429 | 708 | 327 |
| Tax receivables | 10 | 30 | 4 |
| Receivables from group companies | - | 13 | - |
| Other receivables | 1,728 | 1,798 | 1,863 |
| Prepaid costs and accrued income | 11 | 26 | 22 |
| Cash and cash equivalents | 174 | 245 | 450 |
| Total current assets | 3,750 | 3,703 | 3,423 |
| TOTAL ASSETS | 4,511 | 4,401 | 4,149 |
| TOTAL EQUITY AND LIABILITIES | 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
|---|---|---|---|
| Equity | |||
| Share capital | 4 | 4 | 4 |
| Other contributed capital | 946 | 946 | 946 |
| Retained earnings | 844 | 767 | 768 |
| This period's comprehensive income | -219 | 115 | 129 |
| Total equity attributable to the company's shareholders | 1,575 | 1,832 | 1,847 |
| Holdings without controlling influence | 4 | 4 | 4 |
| Total equity | 1,579 | 1,836 | 1,851 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | |||
| Bond loans | - | 493 | 494 |
| Liabilities to credit institutions | 69 | 69 | 69 |
| Debts user rights | 13 | 16 | 15 |
| Other liabilities | 44 | - | 39 |
| Total | 126 | 578 | 617 |
| Non-current non-interest-bearing liabilities | |||
| Deferred tax liabilities | 9 | 10 | 10 |
| Other provisions | 70 | 73 | 72 |
| Total | 79 | 83 | 82 |
| Total non-current liabilities | 205 | 661 | 699 |
| Current liabilities | |||
| Current interest-bearing liabilities | |||
| Bond loans | 495 | - | - |
| Liabilities to credit institutions | 415 | 1 | 1 |
| Debts user rights | 21 | 17 | 20 |
| Other liabilities | - | 231 | 6 |
| Total | 931 | 249 | 27 |
| Current non-interest-bearing liabilities | |||
| Accounts payable | 596 | 518 | 690 |
| Advance from customer | 239 | 542 | 304 |
| Tax liabilities | 1 | 1 | 3 |
| Other liabilities | 394 | 130 | 128 |
| Accrued expenses and prepaid income | 566 | 464 | 447 |
| Total | 1,796 | 1,655 | 1,572 |
| Total current liabilities | 2,727 | 1,904 | 1,599 |
| TOTAL EQUITY AND LIABILITIES | 4,511 | 4,401 | 4,149 |
| INTEREST-BEARING NET CASH/NET DEB | |||
| Interest-bearing assets | 1,207 | 1,141 | 1,494 |
| Interest-bearing liabilities | 1,057 | 827 | 645 |
| Interest-bearing net cash/net debt | 150 | 314 | 849 |
IN SUMMARY, SEGMENT REPORTING
| Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|
| Equity attributable to the parent company's owners | ||||
| Amount at the beginning of the period | 1,847 | 1,854 | 1,832 | 1,854 |
| Committment consideration shares (business acquisition) | – | -41 | – | -41 |
| Transfer of own shares | – | 43 | – | 43 |
| Buyback of shares | – | -24 | – | -24 |
| Effect of settlement of commitments | – | -2 | – | -2 |
| Dividend | -53 | -112 | -53 | -112 |
| Comprehensive income for the period | -219 | 115 | -205 | 129 |
| Amount at the end of the period | 1,575 | 1,832 | 1,575 | 1,847 |
| Holdings without controlling influence | ||||
| Amount at the beginning of the period | 4 | 4 | 4 | 4 |
| Comprehensive income for the period | 0 | 0 | 0 | 0 |
| Amount at the end of the period | 4 | 4 | 4 | 4 |
| Total equity | 1,579 | 1,836 | 1,579 | 1,851 |
During Q2, a number of changes were made to the reporting of the company's property holdings. A property in Malmö that was acquired in Q1 was adjusted from an investment property to a development property as a consequence of a decision to discontinue investment in the administration of self-developed community service properties.
Due to the market situation, two self-developed logistics facilities that were completed earlier this year could not be sold to an external party. As of Q2, these facilities have been consolidated and are recognised under the item Self-developed properties, as the intention is still to sell them. The revenues and operating expenditures for these properties are recognised under Other operating revenues and Other operating expenditures. Both properties are fully rented out on multi-year contracts.
The property loans for the two logistics facilities mentioned above, as well as a loan raised for an ongoing logistics project, are recognised under Current liabilities to credit institutions There is a forward commitment contract for this project, which means that the buyer takes possession of the property and pays the purchase consideration on completion. The client made an advance payment for the project in Q2, which affects Other liabilities. The Accrued expenses item was affected by costs related to the restructuring of the company, and by a provision for a logistics project in Denmark.
All the Wästbygg Group's unconsolidated development companies are recognised under Other receivables. This item includes receivables related to projects under construction as well as the cost of the participations. These projects are partially financed through construction credit in each development company.
Equity per share amounted to SEK 48.70 (56.66) at the end of the period and the equity ratio was 35 percent (42). The company's interest-bearing net cash was SEK 150 million (314).
As per the balance sheet date, the company did not meet the covenants associated with the green bond. The bond loan was therefore reclassified from a non-current liability to a current liability, as it is due for payment under the terms of the agreement. A written procedure has been initiated with the company's green bondholders to renegotiate the terms of the bond.
When Rekab Entreprenad was acquired in 2021, the purchase consideration was paid, in part, through consideration shares. Half of the consideration was paid in 2022 and the next payment will be made in 2024 in accordance with the contract. In 2022, Wästbygg bought back a sufficient number of its own shares to cover most of the outstanding settlement to Rekab Entreprenad's former holding company.
SEGMENT REPORTING
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Day-to-day operations | ||||||
| Profit/loss before financial items | -262 | 65 | -239 | 95 | -246 | 88 |
| Adjustment for items not included in cash flow | 0 | 13 | 1 | 16 | -4 | 11 |
| Received interest | 17 | 7 | 26 | 16 | 50 | 40 |
| Paid interest | -26 | -12 | -37 | -24 | -62 | -49 |
| Paid tax | 0 | -5 | -7 | -15 | 23 | 15 |
| Cash flow from operating activities before | ||||||
| changes in working capital | -270 | 68 | -256 | 88 | -239 | 105 |
| Cash flow from changes in working capital | ||||||
| Increase (-)/decrease (+) of accounts receivable | -228 | -221 | -239 | -183 | -72 | -16 |
| Increase (-)/decrease (+) of other operating receivables | 200 | -340 | 22 | -526 | 309 | -239 |
| Increase (+)/decrease (-) of accounts payable | -9 | 47 | -101 | 48 | 69 | 218 |
| Increase (+)/decrease (-) of operating liabilities | 301 | 37 | 142 | 106 | -339 | -375 |
| Cash flow from the day-to-day operations | -5 | -409 | -432 | -467 | -272 | -307 |
| Investment activities | ||||||
| Withdrawals/supplements joint ventures and associated companies | -5 | – | -5 | 8 | -5 | 8 |
| Acquisitions of intangible fixed assets | -2 | -2 | -5 | -3 | -8 | -6 |
| Investments in investment properties | 33 | – | – | – | 0 | 0 |
| Acquisitions of other tangible fixed assets | 0 | -2 | 0 | -10 | 8 | -2 |
| Investment in other financial fixed assets | – | – | -1 | – | -1 | – |
| Cash flow from investing activities | 26 | -4 | -11 | -5 | -6 | 0 |
| Financing activities | ||||||
| Buyback of shares | – | -24 | – | -24 | – | -24 |
| Paid dividend | -53 | -112 | -53 | -112 | -53 | -112 |
| Amortisation of loan liabilities | -3 | -5 | -3 | -10 | 5 | -2 |
| Raised loan liabilities | 222 | 0 | 222 | 9 | 253 | 40 |
| Change in bank overdraft facilities | -87 | – | – | – | – | – |
| Cash flow from financing activities | 79 | -141 | 166 | -137 | 205 | -98 |
| CASH FLOW FOR THE PERIOD | 100 | -554 | -277 | -609 | -73 | -405 |
| Cash and cash equivalents at the start of the period | 73 | 797 | 450 | 851 | 245 | 851 |
| Exchange rate difference in cash and cash equivalents | 1 | 2 | 1 | 3 | 2 | 4 |
| Cash and cash equivalents at the end of the period | 174 | 245 | 174 | 245 | 174 | 450 |
Variations in cash flow from one period to another are a natural consequence of the number of development projects in progress and the number of projects sold.
Total cash flow for Q2 amounted to SEK 100 million (-554) divided into current operations SEK -5 million (-409), investment operations SEK 26 million (-4) and financing operations SEK 79 million (-141).
Cash flow from current operations was positively affected by an advance payment from the client for a logistics project, the sale of building rights and the completion of three self-developed residential projects, of which two comprise tenant-owned apartments. In comparison with Q2 2023, more self-developed projects were in progress during the same period in 2022, which at that time impacted the group's cash flow. The write-down of profits in several projects in Q2 has increased the Operating liabilities item, which had a positive effect on cash flow.
The cash flow for investment operations was positive due to a reporting effect when a property in Malmö, acquired in Q1, was adjusted from an investment property to a development property.
Financing operations were affected by the payment of approved dividend in May, and by an external loan raised for an ongoing logistics project.
Total cash flow for January – June amounted to SEK -277 million (-609), divided into current operations SEK -432 million (-467), investment operations SEK -11 million (-5) and financing operations SEK 166 million (-137).
Ongoing self-developed projects were self-funded to a relatively large extent in the first six months. The company is now entering a phase where investment in new self-developed projects is decreasing. Additional self-developed projects will be completed later in the year, and the investments made in recent years will gradually be brought back into the company along with the returns generated.
As per 30 June, the group's available liquidity amounted to SEK 424 million, including unutilised bank overdraft facilities of SEK 250 million.
IFRS
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jul-Jun | Jan-Dec | |
|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 2022-23 | 2022 | |
| Revenue | 1,485 | 1,304 | 2,692 | 2,351 | 5,522 | 5,181 |
| Costs in production | -1,593 | -1,204 | -2,705 | -2,171 | -5,412 | -4,878 |
| Gross profit/loss | -108 | 100 | -13 | 180 | 110 | 303 |
| Sales and administration costs | -106 | -81 | -197 | -173 | -384 | -360 |
| Other operating revenue | 12 | 2 | 14 | 4 | 19 | 9 |
| Other operating costs | -2 | -1 | -3 | -1 | -4 | -2 |
| Operating profit | -204 | 20 | -199 | 10 | -259 | -50 |
| Profit/loss from financial items | ||||||
| Profit shares from joint ventures and associated companies | -4 | 0 | -4 | 0 | -5 | -1 |
| Financial revenue | 13 | 4 | 17 | 11 | 32 | 26 |
| Financial costs | -26 | -12 | -37 | -24 | -63 | -50 |
| Profit after financial items | -221 | 13 | -223 | -4 | -294 | -75 |
| Change in value of real estate | -10 | 0 | -10 | 0 | -10 | 0 |
| Profit before tax | -231 | 13 | -233 | -4 | -304 | -75 |
| Taxes | 46 | 13 | 49 | 30 | 77 | 58 |
| Profit for the period | -185 | 26 | -185 | 26 | -228 | -17 |
| Profit relating to: | ||||||
| - the parent company's shareholders | -185 | 26 | -185 | 26 | -228 | -17 |
| - holdings without controlling influence | 0 | 0 | 0 | 0 | 0 | 0 |
| Earnings per share, SEK* | -5,74 | 0,80 | -5,71 | 0,81 | -7,05 | -0,53 |
| Number of shares at the end of the period (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 |
| Average number of shares (thousands) | 32,341 | 32,341 | 32,341 | 32,465 | 32,341 | 32,402 |
| THE GROUP'S REPORT ON COMPREHENSIVE INCOME | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Profit for the period | -185 | 26 | -185 | 26 | -228 | -17 |
| Other comprehensive income that can be transferred to the income statement |
||||||
| Currency difference when translating foreign operations | -3 | 0 | -3 | 1 | -6 | -2 |
| Comprehensive income for the period | -188 | 26 | -188 | 27 | -234 | -19 |
| Total result attributable to: | ||||||
| - the parent company's shareholders | -188 | 26 | -188 | 27 | -234 | -19 |
| - holdings without controlling influence | 0 | 0 | 0 | 0 | 0 | 0 |
* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately. The change in the number of shares during the period is attributable to the structure of the acquisition of Rekab Entreprenad AB. No decisions have been taken regarding a new issue or issue of new shares. When all buybacks and transfers of consideration shares have taken place, the number of shares will again correspond to the number of registered shares. See page 31 for further information about the number of shares.
In Q2, revenues increased by 14 percent year-on-year, to SEK 1,485 million (1,304). The completion of two selfdeveloped tenant-ownership projects had a positive effect on revenues. Additional self-developed projects are in production, which means that both revenue and profit will be held back until these projects are completed.
Various factors impacted profit negatively, and the operating profit for Q2 was SEK -204 million (20).Due to the current market situation, the company has conducted write-downs of the expected financial outcomes of projects, as well as made additional provisions, totaling approximately SEK -200 million. Furthermore the company's current assets have been written down by SEK -64 million. These one-off write-downs will have only a limited effect on the company's future cash flow. The operating result for Q2 was also impacted by restructuring costs due to the staff cutbacks that have been implemented; see under the heading Personnel.
In addition to the above, the value of investment properties has been written down by SEK -10 million, which impacted profit before tax.
Profit after tax was SEK -185 million (26), equivalent to earnings per share of SEK -5.74 (0.80). The operating margin was -13.7 percent (1.5).
The order intake in Q2 amounted to SEK 1,180 million (1,591). Two large logistics projects represented a sizeable proportion of the order intake, although additional contracts were signed in all three business areas. The order backlog stood at SEK 4,566 million (6,818) as of 30 June, roughly the same level as at the end of Q1.
The contract worth SEK 1.7 billion that the group company Logistic Contractor signed with H2 Green Steel in early May is not included in the order backlog, since the contract term related to H2 Green Steel's financing of the project has not yet been met.
Revenues for the six-month period increased by 15 percent year-on-year, to SEK 2,692 million (2,351). Operating profit stood at SEK -199 (10).
Profit after tax amounted to SEK -185 million (26), corresponding to earnings per share of -5.71 (0.81). The operating margin was -7.4 (0.4).
The total order intake was SEK 1,508 million (2,936). After weak sales at the start of the year, a significantly stronger order intake was reported for Q2.
Positive tax was reported for the period January – June, due to a negative tax result as well as non-taxable revenues. The item also includes deferred tax.
Due to the severely weakened economy, notice was given in May that approximately 70 positions in the group would be terminated. Trade union negotiations have been completed and the workforce will gradually decrease over the coming months as the notice periods for the announced redundancies expire.
The Wästbygg Group had 595 employees as per 30 June, compared to 597 at the start of the year. The Wästbygg Group had 569 employees a year ago.
IFRS
| ASSETS | 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
|---|---|---|---|
| Fixed assets | |||
| Intangible fixed assets | |||
| Goodwill | 428 | 428 | 428 |
| Other intangible fixed assets | 34 | 35 | 34 |
| Total | 462 | 463 | 462 |
| Tangible fixed assets | |||
| Investment properties | 65 | 75 | 75 |
| User rights assets | 33 | 32 | 35 |
| Inventory, tools and installations | 3 | 5 | 4 |
| Total | 102 | 112 | 114 |
| Financial fixed assets | |||
| Shares in joint ventures and associated companies | 1 | 2 | 1 |
| Deferred tax receivables | 164 | 87 | 117 |
| Non-current financial assets | 0 | 0 | 0 |
| Total | 165 | 89 | 118 |
| Total fixed assets | 729 | 664 | 693 |
| Current assets | |||
| Self-developed properties | 345 | - | - |
| Development properties, etc. | 316 | 224 | 263 |
| Tenant-owner association flats of own development under production |
1,453 | 1,203 | 1,565 |
| Accounts receivable | 706 | 628 | 464 |
| Accrued but not invoiced | 317 | 614 | 248 |
| Tax receivables | 11 | 32 | 4 |
| Receivables from group companies | - | 13 | - |
| Other receivables | 779 | 768 | 674 |
| Prepaid costs and accrued income | 11 | 26 | 22 |
| Cash and cash equivalents | 201 | 285 | 534 |
| Total current assets | 4,139 | 3,793 | 3,774 |
| TOTAL ASSETS | 4,868 | 4,457 | 4,467 |
| TOTAL EQUITY AND LIABILITIES | 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
|---|---|---|---|
| Equity | |||
| Share capital | 4 | 4 | 4 |
| Other contributed capital | 946 | 946 | 946 |
| Retained earnings | 590 | 661 | 662 |
| This period's comprehensive income | -188 | 27 | -19 |
| Total equity attributable to the company's shareholders | 1 352 | 1 638 | 1 593 |
| Holdings without controlling influence | 4 | 4 | 4 |
| Total equity | 1,356 | 1,642 | 1,597 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | |||
| Bond loans | - | 493 | 494 |
| Liabilities to credit institutions | 115 | 173 | 173 |
| Debts user rights | 13 | 16 | 16 |
| Other liabilities | 38 | - | 39 |
| Total | 166 | 682 | 722 |
| Non-current non-interest-bearing liabilities | |||
| Deferred tax liabilities | 21 | 19 | 20 |
| Other provisions | 70 | 73 | 71 |
| Total | 91 | 92 | 91 |
| Total non-current liabilities | 257 | 774 | 813 |
| Current liabilities | |||
| Current interest-bearing liabilities | |||
| Bond loans | 495 | - | - |
| Liabilities to credit institutions | 1,182 | 463 | 752 |
| Debts user rights | 21 | 17 | 20 |
| Other liabilities | - | 225 | - |
| Total | 1,698 | 705 | 772 |
| Current non-interest-bearing liabilities | |||
| Accounts payable | 596 | 519 | 690 |
| Advance from customer | 242 | 484 | 266 |
| Tax liabilities | 3 | 1 | 5 |
| Other liabilities | 421 | 164 | 157 |
| Accrued expenses and prepaid income | 295 | 167 | 167 |
| Total | 1,557 | 1,335 | 1,285 |
| Total current liabilities | 3,255 | 2,041 | 2,057 |
| TOTAL EQUITY AND LIABILITIES | 4,868 | 4,457 | 4,467 |
| INTEREST-BEARING NET CASH/NET DEB | |||
| Interest-bearing assets | 688 | 784 | 938 |
| Interest-bearing liabilities | 1,864 | 1,387 | 1,494 |
| Interest-bearing net cash/net debt | -1,176 | -603 | -556 |
IN SUMMARY, IFRS
| Jan-Jun | Jan-Jun | Jul-Jun | Jan-Dec | |
|---|---|---|---|---|
| 2023 | 2022 | 2022-23 | 2022 | |
| Equity attributable to the parent company's owners | ||||
| Amount at the beginning of the period | 1,593 | 1,747 | 1,638 | 1,747 |
| Committment consideration shares (business acquisition) | – | -41 | – | -41 |
| Transfer of own shares | – | 43 | – | 43 |
| Buyback of shares | – | -24 | – | -24 |
| Effect of settlement of commitments | – | -2 | – | -2 |
| Dividend | -53 | -112 | -53 | -112 |
| Comprehensive income for the period | -188 | 27 | -234 | -19 |
| Amount at the end of the period | 1,352 | 1,638 | 1,352 | 1,593 |
| Holdings without controlling influence | ||||
| Amount at the beginning of the period | 4 | 4 | 4 | 4 |
| Comprehensive income for the period | 0 | 0 | 0 | 0 |
| Amount at the end of the period | 4 | 4 | 4 | 4 |
| Total equity | 1,356 | 1,642 | 1,356 | 1,597 |
During Q2, a number of changes were made to the reporting of the company's property holdings. A property in Malmö that was acquired in Q1 was adjusted from an investment property to a development property as a consequence of a decision to discontinue investment in the administration of self-developed community service properties. Due to the market situation, two self-developed logistics facilities that were completed earlier this year could not be sold to an external party. As of Q2, these facilities have been consolidated and are recognised under the item Self-developed properties, as the intention is still to sell them. The revenues and operating expenditures for these properties are recognised under Other operating revenues and Other operating expenditures. Both properties are fully rented out on multi-year contracts.
Construction credits in self-developed tenant-ownership projects are recognised under Current liabilities to credit institutions. As of Q2, the property loans for the two logistics facilities mentioned above, as well as a loan raised for an ongoing logistics project, are also recognised under Current liabilities to credit institutions. There is a forward commitment contract for this project, which means that the buyer takes possession of the property and pays the purchase consideration on completion. The client made an advance payment for the project in Q2, which affects Other liabilities. The Accrued expenses item was affected by costs related to the restructuring of the company, and by a provision for a logistics project in Denmark.
All the Wästbygg Group's unconsolidated development companies are recognised under Other receivables. This item includes receivables related to projects under construction as well as the cost of the participations. These projects are partially financed through construction credits in each development company.
Equity per share amounted to SEK 41.82 (50.66) at the end of the period and the equity ratio was 28 percent (37). The company's interest-bearing net cash was affected by construction credits for ongoing tenant-ownership projects and loans raised for completed self-developed logistics facilities, and amounted to SEK -1,176 million (-603).
As per the balance sheet date, the company did not meet the covenants associated with the green bond. The bond loan was therefore reclassified from a non-current liability to a current liability, as it is due for payment under the terms of the agreement A written procedure has been initiated with the company's green bondholders to renegotiate the terms of the bond.
When Rekab Entreprenad was acquired in 2021, the purchase consideration was paid, in part, through consideration shares. Half of the consideration was paid in 2022 and the next payment will be made in 2024 in accordance with the contract. In 2022, Wästbygg bought back a sufficient number of its own shares to cover most of the outstanding settlement to Rekab Entreprenad's former holding company.
IFRS
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Day-to-day operations | ||||||
| Profit/loss before financial items | -204 | 20 | -199 | 10 | -259 | -50 |
| Adjustment for items not included in cash flow | -1 | 14 | 0 | 15 | -7 | 8 |
| Received interest | 13 | 4 | 17 | 11 | 32 | 26 |
| Paid interest | -26 | -12 | -37 | -24 | -62 | -49 |
| Paid tax | 0 | -5 | -8 | -16 | 23 | 15 |
| Cash flow from operating activities before | ||||||
| changes in working capital | -218 | 21 | -227 | -4 | -273 | -50 |
| Cash flow from changes in working capital | ||||||
| Increase (-)/decrease (+) of tenant-owner association flats of own development in production |
-194 | -199 | -404 | -324 | -886 | -806 |
| Increase (-)/decrease (+) of accounts receivable | -228 | -221 | -239 | -183 | -72 | -16 |
| Increase (-)/decrease (+) of other operating receivables | 44 | -207 | -193 | -384 | 241 | 50 |
| Increase (+)/decrease (-) of accounts payable | -13 | 46 | -101 | 38 | 68 | 207 |
| Increase (+)/decrease (-) of operating liabilities | 465 | 14 | 365 | 65 | 24 | -276 |
| Cash flow from the day-to-day operations | -144 | -546 | -799 | -792 | -898 | -891 |
| Investment activities | ||||||
| Withdrawals/supplements joint ventures and associated companies | -5 | – | -5 | 8 | -5 | 8 |
| Acquisitions of intangible fixed assets | -2 | -2 | -5 | -3 | -8 | -6 |
| Investments in investment properties | 33 | – | – | 0 | 0 | 0 |
| Acquisitions of other tangible fixed assets | 0 | -2 | – | -10 | 8 | -2 |
| Cash flow from investing activities | 26 | -4 | -10 | -5 | -5 | 0 |
| Financing activities | ||||||
| Buyback of shares | – | -24 | – | -24 | – | -24 |
| Paid dividend | -53 | -112 | -53 | -112 | -53 | -112 |
| Amortisation of loan liabilities | -3 | -5 | -3 | -10 | 5 | -2 |
| Raised loan liabilities | 309 | 93 | 530 | 326 | 866 | 662 |
| Change in bank overdraft facilities | -87 | – | – | – | – | – |
| Cash flow from financing activities | 166 | -48 | 474 | 180 | 818 | 524 |
| CASH FLOW FOR THE PERIOD | 48 | -598 | -335 | -616 | -86 | -367 |
| Cash and cash equivalents at the start of the period | 151 | 881 | 534 | 897 | 285 | 897 |
| Exchange rate difference in cash and cash equivalents | 1 | 2 | 1 | 3 | 2 | 4 |
| Cash and cash equivalents at the end of the period | 201 | 285 | 201 | 285 | 201 | 534 |
Variations in cash flow from one period to another are a natural consequence of the number of development projects in progress and the number of projects sold.
Total cash flow for Q2 amounted to SEK 48 million (-598) divided into current operations SEK -144 million (-546), investment operations SEK 26 million (-4) and financing operations SEK 166 million (-48).
Cash flow from current operations was positively affected by an advance payment from the client for a logistics project, the sale of building rights and the completion of three self-developed residential projects, of which two comprise tenant-owned apartments. In comparison with Q2 2023, more self-developed projects were in progress during the same period in 2022, which at that time impacted the group's cash flow. The write-down of profits in several projects in Q2 has increased the Operating expenses item, which had a positive effect on cash flow.
The cash flow for investment operations was positive due to a reporting effect when property in Malmö, acquired in Q1, was adjusted from an investment property to a development property.
Financing operations were affected by the payment of approved dividend in May, utilisation of construction credits for ongoing tenant-ownership projects, and an external loan raised for an ongoing logistics project.
Total cash flow for January – June amounted to SEK -335 million (-616), divided into current operations SEK -799 million (-792), investment operations SEK -10 million (-5) and financing operations SEK 474 million (180).
Ongoing self-developed projects were self-funded to a relatively large extent in the first six months. The company is now entering a phase where investment in new self-developed projects is decreasing. Additional self-developed projects will be completed later in the year, and the investments made in recent years will gradually be brought back into the company along with the returns generated.
As per 30 June, the group's available liquidity amounted to SEK 451 million, including unutilised bank overdraft facilities of SEK 250 million.
IN SUMMARY
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Revenue | 29 | 28 | 58 | 56 | 113 | 111 |
| Other operating revenue | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 29 | 28 | 58 | 56 | 113 | 111 |
| Staff costs | -17 | -16 | -36 | -33 | -66 | -63 |
| Other external costs | -15 | -18 | -28 | -32 | -63 | -67 |
| Operting profit/loss | -4 | -6 | -6 | -9 | -16 | -19 |
| Profit/loss from financial items | ||||||
| Dividend (anticipated) from subsidiaries | – | – | – | – | 290 | 290 |
| Other interest income and similar income items | 24 | 11 | 41 | 21 | 67 | 47 |
| Interest expenses and similar income items | -21 | -8 | -31 | -17 | -53 | -39 |
| Profit after financial items | -1 | -3 | 4 | -5 | 288 | 279 |
| Year-end appropriations | ||||||
| Year-end appropriations | - | - | - | - | -15 | -15 |
| Profit before tax | -1 | -3 | 4 | -5 | 273 | 264 |
| Taxes | 0 | 1 | -1 | 1 | 5 | 7 |
| Profit/loss for the period | -1 | -3 | 3 | -4 | 277 | 270 |
IN SUMMARY
| 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
|
|---|---|---|---|
| ASSETS | |||
| Intangible fixed assets | |||
| Tangible fixed assets | 12 | 7 | 9 |
| Financial fixed assets | 2 469 |
2 461 |
2 468 |
| Total fixed assets | 483 | 470 | 479 |
| Current receivables | 1,947 | 1,584 | 1,955 |
| Cash and bank balances | 57 | 172 | 264 |
| Total current assets | 2,004 | 1,756 | 2,219 |
| TOTAL ASSETS | 2,487 | 2,226 | 2,698 |
| TOTAL EQUITY AND LIABILITIES | |||
| Restricted equity | 4 | 4 | 4 |
| Unrestricted equity | 1,636 | 1,411 | 1,685 |
| Total equity | 1,640 | 1,414 | , 689 |
| Non-current liabilities | - | 493 | 494 |
| Current liabilities | 847 | 319 | 515 |
| TOTAL EQUITY AND LIABILITIES | 2,487 | 2,226 | 2,698 |
The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act.
Consolidated financial statements are prepared in accordance with IFRS from the 2015 financial year. The accounting principles applied in the interim report are described in the annual report for 2022 on pages 78–84. Accounting principles and calculation methods for the Group are unchanged compared with the annual report last year.
New or amended IFRS standards applied from 2023 have no or little impact on Wästbygg Group's financial reporting.
As of the date of approval of this financial report, certain new standards, amendments and interpretations of existing standards that have not yet entered into force have been published by IASB. These have not been applied prematurely by the Group and the changes are not expected to have a significant impact on the financial statements during the financial year in which they are to be applied for the first time and therefore no information has been provided.
Wästbygg Group's segment reporting follows the group's internal reporting to company management and the board, as this is how the board and group management controls and monitors operations. The segment reporting reports revenue recognition for project development of owner-occupied flats over time.
| SEGMENT REPORT IN SUMMARY, SEK MILLTION |
Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| REVENUE | ||||||
| Residential Of which internal sales |
430 - |
434 - |
870 1 |
790 0 |
1 858 4 |
1 778 3 |
| Commercial Of which internal sales |
424 2 |
492 - |
916 7 |
908 - |
1 936 7 |
1 928 - |
| Logistics and industry 1 Of which internal sales |
503 - |
573 - |
948 - |
984 - |
2 052 - |
2 088 - |
| Other 2 | 29 | 28 | 58 | 56 | 113 | 111 |
| Of which internal sales | 29 | 28 | 58 | 56 | 113 | 111 |
| Group adjustments | -28 | -28 | -55 | -56 | -110 | -111 |
| Total | 1,358 | 1,499 | 2,737 | 2,682 | 5,849 | 5,794 |
| IFRS adjustment (attributable to the Residential segment) | 127 | -195 | -45 | -331 | -328 | -614 |
| Total IFRS 3 | 1,485 | 1,304 | 2,692 | 2,351 | 5,522 | 5,181 |
| Of which revenue repord at one point in time | 300 | 0 | 300 | 0 | 507 | 207 |
| OPERATING PROFIT | ||||||
| Residential Operating margin |
-68 -15,8 % |
12 2,8 % |
-73 -8,4 % |
36 4,6 % |
-59 -3,2 % |
50 2,8 % |
| Commercial Operating margin |
-53 -12,5 % |
2 0,4 % |
-38 -4,1 % |
-5 -0,6 % |
-27 -1,4 % |
6 0,3 % |
| Logistics and industry 1 Operating margin |
-131 -26,0 % |
66 11,5 % |
-115 -12,1 % |
83 8,4 % |
-142 -6,9 % |
56 2,7 % |
| Other 2 Group adjustments |
-4 -6 |
-6 -9 |
-6 -7 |
-9 -10 |
-16 -2 |
-19 -5 |
| Total | -262 | 65 | -239 | 95 | -246 | 88 |
| Operating margin | -19,3 % | 4,3 % | -8,7 % | 3,5 % | -4,2 % | 1,5 % |
| Financial items | -13 | -5 | -15 | -8 | -17 | -10 |
| Change in value of real estate | -10 | 0 | -10 | 0 | -10 | 0 |
| Profit before tax, segment | -285 | 60 | -264 | 87 | -273 | 78 |
| IFRS adjustment (attributable to the Residential segment) | 54 | -48 | 31 | -91 | -30 | -152 |
| Profit before tax IFRS | -231 | 13 | -233 | -4 | -305 | -75 |
Distribution by geographic market is reported under section Logistics and industry on page 14. Only Logistics and industry have operations abroad.
2 Segment Other consists of the parent company's operations and contains only internally invoiced revenue. As a result, the operating margin for Other is not reported. The parent company's operations consist of support functions for the segments in the form of departments for finance, HR, QEW, sustainability, IT and communications as well as group management.
The transfer pricing between the operating segments takes place on market terms. Financial items and taxes are not distributed by segment, nor are they followed up by the highest executive decision-makers, which is why they have been excluded from the table above. The equivalent also applies to assets and liabilities. There is also no items affecting cash flow or separate reporting of depreciation per segment as those amounts are small.
The group has discussions or disputes with customers or partners from time to time about commercial terms. In exceptional cases, this takes place in an arbitration or other legal instance. In some cases, they are evaluated by external legal representatives in consultation with internal resources. The report reflects at all times the best overall assessment that has been made, but actual outcomes may deviate as in some cases these are complex assessments.
The group is continuously working on assessing and managing risks and uncertainty factors, and places strong focus on various vulnerability reduction measures. The group's risks may primarily be related to three areas: external environment risks, operational project and contract risks including sustainability risks, and financial risks. A more comprehensive risk analysis can be found in the company's annual report for 2022 on pages 61–67. No significant changes took place that have changed these reported risks.
There are several uncertainty factors in the external environment that affect the group's business and the construction industry as a whole. Russia's invasion of Ukraine has, besides causing enormous suffering for the population, affected the general economy. Energy costs, material costs and interest rates have risen and inflation has now spread through society at large. The current uncertainty in the financial market and inflation reduction measures are generally resulting in reduced access to capital in the market and increased credit costs, as well as causing our clients to take a more cautious approach. We are closely monitoring the macroeconomic situation to minimise negative impact to the Wästbygg Group.
The parent company's intra-group revenues for the second quarter amounted to SEK 29 million (29) and the profit/loss after net financial items was SEK -1 million (-3).
The Wästbygg Group's largest shareholder is M2 Holding AB, which is owned and controlled by Rutger Arnhult, who is also a Board member of that company. The M2 Group owns a majority of the Wästbygg Group's share capital, but controls less than 50 percent of votes in the company.
The M2 Group has significant direct and indirect ownership interests in Corem Property Group AB, which is part of the group of related companies but is not a group company connected with the Wästbygg Group.
The Wästbygg Group carries out contract assignments in competition for Corem Property Group and M2.
Revenue accrued in current projects is shown in the table below. As of 30 June 2023, other transactions with related parties comprised rental costs of SEK 2 million (0), accounts receivable of SEK 7 million (20) and other receivables of SEK 13 million (13).
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Corem | 31 | 8 | 67 | 21 | 115 | 68 |
| M2 | 1 | 41 | 3 | 51 | 46 | 95 |
| Total | 33 | 49 | 71 | 72 | 161 | 163 |
The Group's financial instruments essentially consist of financial assets and financial liabilities that are valued at accrued acquisition value. Financial instruments that are valued at fair value consist of currency futures and contingent purchase consideration, which amount to insignificant amounts. Further information can be found in the group's annual report for 2022 in Note 1 Accounting Principles and Note 29 Financial Risk Management and Financial Instruments.
| SEGMENT REPORTING 1 | Apr-Jun 2023 |
Jan-Mar 2023 |
Oct-Dec 2022 |
Jul-Sep 2022 |
Apr-Jun 2022 |
Jan-Mar 2022 |
Oct-Dec 2021 |
Jul-Sep 2021 |
|---|---|---|---|---|---|---|---|---|
| Financial key ratios | ||||||||
| Revenue | 1,358 | 1,379 | 1,814 | 1,299 | 1,499 | 1,183 | 1,271 | 822 |
| Operating profit | -262 | 22 | 20 | -27 | 65 | 30 | 69 | 74 |
| Operating margin, % | -19.3 | 1.6 | 1.1 | -2.1 | 4.3 | 2.5 | 5.4 | 9.0 |
| Profit/loss after tax | -239 | 22 | 26 | -9 | 73 | 41 | 74 | 75 |
| Balance sheet | 4,511 | 4,001 | 4,149 | 4,416 | 4,401 | 4,373 | 4,226 | 3,136 |
| Equity/assets ratio, % | 35 | 47 | 45 | 41 | 42 | 43 | 44 | 56 |
| Return on equity, % | -12 | 6 | 7 | 10 | 14 | 14 | 16 | 18 |
| Operating capital | 1 771 | 1,839 | 1,400 | 1,916 | 1,774 | 1,324 | 1,225 | 947 |
| Interest-bearing net cash (+) / net debt (-) | 150 | 464 | 849 | 402 | 314 | 741 | 794 | 856 |
| Cash flow from operating activities | -5 | -427 | 329 | -171 | -409 | -57 | -212 | -141 |
| Equity related key ratios 3 Earnings per share , SEK |
-7,37 | 0.69 | 0.80 | -0.28 | 2.27 | 1.26 | 2.26 | 2.31 |
| Equity per share, SEK | 48.70 | 57.81 | 57.11 | 56.36 | 56.66 | 58.15 | 56.87 | 54.33 |
| Number of shares at the end of the period (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,591 | 32,591 | 32,340 |
| Average number of shares (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,591 | 32,869 | 32,340 |
| IFRS 1 | ||||||||
| Financial key ratios | ||||||||
| Revenue | 1 485 | 1,207 | 1,728 | 1,101 | 1,304 | 1,046 | 1,231 | 767 |
| Operating profit | -204 | 5 | 14 | -74 | 20 | -10 | 10 | 58 |
| Operating margin, % | -13.7 | 0.4 | 0.8 | -6.7 | 1.5 | -1.0 | 0.8 | 7.6 |
| Profit/loss after tax | -185 | 1 | 13 | -56 | 26 | 0 | 13 | 56 |
| Balance sheet | 4,868 | 4,580 | 4,467 | 4,657 | 4,457 | 4,405 | 4,101 | 3,297 |
| Equity/assets ratio, % | 28 | 35 | 36 | 34 | 37 | 40 | 43 | 52 |
| Return on equity, % | -15 | -1 | -1 | -1 | 6 | 10 | 14 | 18 |
| Operating capital | 2 373 | 2,599 | 1,956 | 2,373 | 2,142 | 1,579 | 1,336 | 1,102 |
| Interest-bearing net cash (+) / net debt (-) | -1 176 | -1 134 | -556 | -836 | -603 | -14 | 151 | 428 |
| Cash flow from operating activities | -144 | -655 | 209 | -309 | -546 | -245 | -192 | -191 |
| Equity related key ratios 3 Earnings per share , SEK |
-5.74 | 0.03 | 0.39 | -1.73 | 0.80 | 0.01 | 0.39 | 1.74 |
| Equity per share, SEK | 41,82 | 49.28 | 49.25 | 48.91 | 50.66 | 53.66 | 53.62 | 52.96 |
| Number of shares at the end of the period (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,591 | 32,591 | 32,340 |
| Average number of shares (thousands) | 32,341 | 32,341 | 32,341 | 32,341 | 32,341 | 32,591 | 32,869 | 32,340 |
| OPERATIONAL KEY RATIOS | ||||||||
| Order intake | 1,180 | 328 | 869 | 1 201 | 1 591 | 1 345 | 2 514 | 703 |
| Order backlog | 4,566 | 4,764 | 5,754 | 6,679 | 6,818 | 6,657 | 6,572 | 3,634 |
| No of employees at end of period | 595 | 595 | 597 | 578 | 569 | 535 | 524 | 333 |
For KPI definitions, see page 30.
1 KPIs for the group in accordance with the segment reporting, that is applied for internal control and auditing, and IFRS. See note 2 on page 27 for further information.
2 The company has no options or similar agreements that give rise to a dilution effect, so this is not reported separately. When Rekab Entreprenad AB was acquired, the number of shares changed as a result of the agreement structure. No decisions have been taken regarding a new share issue. When all buybacks and transfers of consideration shares have taken place, the number of shares will again correspond to the number of registered shares. See page 31 for further information on the number of shares.
THE GROUP: Wästbygg presents certain financial measures in the interim report that are not defined by IFRS. The key ratios on page 4 and 29 are chosen on the basis that they are considered to give a fair view of the Company's operations and development. They are also commonly used among other companies, which facilitates comparisons. The key figures listed to the right are not defined in accordance with IFRS unless otherwise stated. Growth (CAGR) is defined in accordance with segment reporting.
SEGMENT: As for the key ratios provided on page 16–20 and in Note 2, they are regarded as alternative key ratios. They have the same definition as key ratios to the right, but are based on segment figures.
Definition: The value of projects received and changes to existing projects during the current period. Tenant-owner association projects of own development are included in order intake as soon as a construction agreement has been signed for construction.
Purpose: Shows the company's sales during the current period.
Definition: The value at the end of the period of the remaining unprocessed project revenue in pending assignments. Tenant-owner association projects of own development are included in the order backlog as soon as a construction agreement has been signed for construction.
Purpose: Shows the company's revenues in future periods.
1From segment reporting
2See information about Wästbygg Gruppen's share on page 31 for further information about the number of shares.
| FINANCIAL KEY RATIOS | Jan-Jun 2023 |
Jan-Jun 2022 |
Jul-Jun 2022-23 |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|
| Balance sheet total | |||||
| A Total assets | 4,868 | 4,457 | 4,868 | 4,467 | |
| A = Balance sheet total | 4,868 | 4,457 | 4,868 | 4,467 | |
| Revenue growth (CAGR) 1 | Definition: Revenue for rolling 12 months divided by revenue for the previous | ||||
| A Revenue (rolling 12 months) | 5,849 | 4,775 | 5,849 | 5,794 | period, raised to one divided by the number of years between the two periods, |
| B Comparison period revenue | 3,801 | 3,905 | 3,801 | 3,905 | minus one. Wästbygg Gruppen measures CAGR over three years based on the end of the year immediately before the current three-year period. |
| C Number of years between periods | 2.5 | 2.5 | 2.5 | 3 | |
| (A/B)^(1/C)-1 = Revenue growth, % | 18.8 % | 8.4 % | 18.8 % | 14.1 % | Purpose: Shows the company's ability to increase revenue over time. |
| Operating margin | Definition: Operating profit/loss in relation to revenue. | ||||
| A Operating profit/loss | -199 | 10 | -259 | -50 | |
| B Revenue | 2,692 | 2,351 | 5,522 | 5,181 | Purpose: Shows the company's earning capacity. |
| A/B = Operating margin, % | -7.4 % | 0.4 % | -4.7 % | -1.0 % | |
| Equity ratio | Definition: Equity in relation to the balance sheet total. | ||||
| A Total equity | 1,356 | 1,642 | 1,356 | 1,597 | |
| B Balance sheet total | 4,868 | 4,457 | 4,868 | 4,467 | Purpose: Describes the capital structure of the company. |
| A/B = Equity ratio, % | 28 % | 37 % | 28 % | 36 % | |
| Return on equity | Definition: Profit for the period (rolling 12 months) divided by average equity for | ||||
| A Profit/loss for the period (rolling 12 months) | -228 | 96 | -228 | -17 | the period. |
| B Equity at the beginning of the period | 1,597 | 1,751 | 1,642 | 1,751 | Purpose: Shows the company's ability to generate return on equity. |
| C Equity at the end of the period | 1,356 | 1,642 | 1,356 | 1,597 | |
| A/((B+C)/2) = Return on equity, % | -15 % | 6 % | -15 % | -1 % | |
| Operating capital | Definition: Current assets (excluding cash and cash equivalents and tax | ||||
| A Current assets | 4,128 | 3,761 | 4,128 | 3,770 | receivables) less current non-interest-bearing liabilities (excluding tax liabilities). |
| B Cash and cash equivalents | 201 | 285 | 201 | 534 | |
| C Current non-interest-bearing liabilities | 1,554 | 1,334 | 1,554 | 1,280 | Purpose: Shows the company's tied up capital. |
| A-B-C = Operating capital | 2,373 | 2,142 | 2,373 | 1,956 | |
| Interest-bearing net debt/net cash | Definition: Interest-bearing receivables including cash and cash equivalents | ||||
| Receivables from group companies | 0 | 13 | 0 | 0 | less interest-bearing liabilities. |
| Cash and cash equivalents | 201 | 285 | 201 | 534 | |
| Other interest-bearing receivables | 487 | 486 | 487 | 404 | Purpose: Shows the company's real indebtedness. |
| A Interest-bearing assets at end of period | 688 | 784 | 688 | 938 | |
| Non-current interest-bearing liablilities | 166 | 682 | 166 | 722 | |
| Current interest-bearing liablilites | 1,698 | 705 | 1,698 | 772 | |
| B Interest-bearing liabilities | 1,864 | 1,387 | 1,864 | 1,494 | |
| A-B = Interest bearing net cash (+)/net debt (-) | -1,176 | -603 | -1,176 | -556 | |
| Earnings per share, IFRS | Definition: Profit/loss attributable to the company's shareholders in relation to | ||||
| A Profit for the period | -185 | 26 | -228 | -17 | the number of outstanding shares. |
| B Average number of outstanding shares (thousands) 2 | 32,341 | 32,465 | 32,341 | 32,402 | Purpose: Illustrates each share's share of the period's earnings. |
| A/B = Earnings per share, SEK | -5.71 | 0.81 | -7.05 | -0.53 | |
| Equity per share, IFRS | Definition: Equity attributable to the company's shareholders in relation to the | ||||
| A Equity at the end of the period | 1,352 | 1,638 | 1,352 | 1,593 | number of outstanding shares at the end of the period. |
| B Number of outstanding shares at the end of the | 32,341 | 32,341 | 32,341 | 32,341 | Purpose: Illustrates each share's share of the equity. |
| period ('thousands) 2 | |||||
| A/B = Equity per share, SEK | 41.82 | 50.66 | 41.82 | 49.25 |
The class B shares of the Wästbygg Group are listed on Nasdaq Stockholm under the ticker code WBGR B. On the last trading day of the second quarter of 2023, the share price closed at SEK 40.00. This was equivalent to a stock market value of SEK 1,294 million, calculated on the basis of the number of outstanding shares. As per 30 June, the share capital amounted to SEK 3,593,352, divided into 620,000 Class A shares and 31,720,165 Class B shares. The Wästbygg Group had 4,335 shareholders at the end of Q2. The proportion of foreign ownership was approximately 9.5 percent of the share capital. The ten largest shareholders controlled approximately 84 percent of the capital and 86 percent of the votes. The table at the side of the page shows the ten confirmed largest shareholders as per 30 June 2023.
The Board of Directors was authorised at the Annual General Meeting on 4 May 2023 to make decisions regarding buyback and transfer of the company's shares. No buy-back of the company's shares took place based on the existing authorisation. However, the Wästbygg Group already holds 424,687 of the company's shares which were bought back on an earlier date to cover the outstanding payment to Trekcyd AB for the acquisition of Rekab Entreprenad AB, which took place in 2021.
One of the Wästbygg Group's long-term goals is for the dividend to amount to 40 percent of net profit over time, based on the segment reporting. The Annual General Meeting 2023 approved a dividend of SEK 52,660,538, equivalent to SEK 1.65 per dividend-entitled share (31,915,478 shares in total, as 424,687 shares are held by the company). The dividend corresponded to a direct return of 3.66 percent, based on the share price at year end.
The Wästbygg Group has become one of the first companies in Sweden to apply for and be awarded the Nasdaq Green Equity Designation.
| Name | No of class A-shares |
No of class B-shares |
Total no of shares |
Proportion of capital |
Proportion of votes |
|---|---|---|---|---|---|
| M2 Holding AB | 117,500 | 16,853,586 | 16,971,086 | 52.5% | 47.5% |
| Svolder AB (publ) | 110,000 | 3,471,754 | 3,581,754 | 11.1% | 12.1% |
| Gårdarike Invest AB | 110,000 | 2,808,922 | 2,918,922 | 9.0% | 10.3% |
| Fino Förvaltning AB | 282,500 | 1,718,000 | 2,000,500 | 6.2% | 12.0% |
| Drumbo Oy | - | 300,000 | 300,000 | 0.9% | 0.8% |
| Avanza Pension | - | 273,528 | 273,528 | 0.8% | 0.7% |
| Carnegie Fonder | - | 273,387 | 273,387 | 0.8% | 0.7% |
| Skandrenting AB | - | 175,000 | 175,000 | 0.5% | 0.5% |
| Handelsbanken Fonder | - | 163,313 | 163,313 | 0.5% | 0.4% |
| Other shareholders | - | 5,257,988 | 5,257,988 | 16.3% | 15.0% |
| Wästbygg Gruppen AB (publ) 1 | - | 424,687 | 424,687 | 1.3% | - |
| Number of registrered shares | 620,000 | 31,720,165 | 32,340,165 | 100.0% | 100.0% |
| Committment consideration shares 2 | - | 425,313 | 425,313 | ||
| Bought back shares 1 | - | -424,687 | -424,687 | ||
| Total number of shares outstanding 3 | 620,000 | 31,720,791 | 32,340,791 |
1 Bought back shares do not carry voting rights and therefore do not entitle holders to dividends. Se note 3 in the annual report for 2022.
2 The Wästbygg Group agreed to pay 425,313 WBGR Class B shares (consideration shares) as part of the purchase consideration for Rekab Entreprenad AB. The final settlement will take place in 2024.
3 The number of outstanding shares is used to calculate equity per share and includes commitments for consideration shares and bought back shares. The same applies to the calculation of earnings per share, which is based on the average number of shares outstanding.
| Other legal entities | 71.4% | |
|---|---|---|
| Investment and asset management | 11.1% | |
| Anonymous ownership | 7.6% | |
| Private individuals | 5.8% | |
| Fund/Asset management | 2.3% | Source: Monitor by Modular |
| Bought back shares | 1.3% | Finance AB. Compiled and processed data from |
| Pension and insurance | 0.3% | various sources, including Euroclear, Morningstar |
| State, municipalities and regions | < 0.1% | and the Swedish Financial |
| Foundations | < 0.1% | Supervisory Authority (Finansinspektionen). |
| INFORMATION | ||
|---|---|---|
| Market: | Nasdaq Stockholm, Mid Cap |
|---|---|
| Ticker code: | WBGR B |
| Stock market value : | SEK 1.3 billion |
| No of shares: | 32,340,165, of which 31,720,165 class B-shares and 620,000 class A-shares. |
| ISIN: | SE0014453874 |
The Board and the CEO declares that the interim report provides a fair and accurate overview of the parent company's and the group's operations, financial position and results of operations and describes significant risks and uncertainties that the parent company and the companies included in the group face. The report has not been reviewed by the company's auditors.
Gotenburg 31 August 2023
WÄSTBYGG GRUPPEN AB (PUBL)
CECILIA MARLOW Chairman
JÖRGEN ANDERSSON Board member
LENNART EKELUND Board member
CHRISTINA KÄLLENFORS Styrelseledamot
CLAS-GÖRAN LYRHEM Board member
JAKOB MÖRNDAL Board member
JONAS JÖNEHALL CEO
The information is such that the Wästbygg Group (publ) must publish in accordance with the EU Market Abuse Regulation. The information was submitted for publication on 31 August 2023 at 08:00.
This interim report has been published in Swedish and English. In the event of a discrepancy between the language versions, the Swedish version shall prevail.
| Interim report January – September | 9 November 2023 |
|---|---|
| Year-end report 2023 | 8 February 2024 |
| Annual report | March 2024 |
Jonas Jönehall, CEO phone +46 739-20 19 01, email [email protected]
Jessica Gårdmo, CFO phone +46 734-67 26 15, email [email protected]
Robin Sundin, Group Legal Counsel and Head of IR phone +46 725-29 30 04, email [email protected]
Wästbygg Gruppen AB (publ) • Sofierogatan 3B • 412 51 Göteborg • Sweden +46 31 733 23 00 • [email protected] • www.group.wastbygg.se Company registration number: 556878-5538 • Registrered office: Gothenburg
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