Interim / Quarterly Report • Aug 26, 2021
Interim / Quarterly Report
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Wästbygg Gruppen AB (publ) January – June 2021
Marmorlyckan i Varberg. Phase 2, with 112 rental apartments, was finished during the second quarter. Customer: Järngrinden och Mjöbäcks Entreprenad.
Thanks to strong recovery in the construction market and our determined efforts to strengthen our project development operations, we can report a very strong first six months. Based on the segment reporting, our operating profit amounted to SEK 68 million for the second quarter and SEK 133 million for the six-month period. Moreover, our order intake was SEK 1.5 billion in the second quarter and SEK 2.2 billion since the start of the year.
Jörgen Andersson, CEO Wästbygg Gruppen
INTERIM REPORT WÄSTBYGG GRUPPEN AB (PUBL), 1 JANUARY – 30 JUNE 2021
1As of the interim report for the period January–June 2020, the Group reports revenues and results for project development of owner-occupied flats upon completion. In addition revenue recognition for these projects is reported over time in the segment report, as this is how the board and group management controls and monitors operations. See Note 2 on page 21 for further information.
| SEK million unless other otherwise specified |
Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan–Dec 2020 |
Jan–Dec 2019 |
Jan–Dec 2018** |
Jan–Dec 2017** |
|---|---|---|---|---|---|---|---|---|---|
| Financial key ratios | |||||||||
| Revenue | 1,051 | 1,050 | 1,951 | 1,976 | 3,595 | 3,620 | 3,889 | 3,543 | 2,822 |
| Operating profit | 91 | 77 | 166 | 102 | 287 | 223 | 220 | 147 | 91 |
| Operating margin, % | 8.7 | 7.3 | 8.5 | 5.2 | 8.0 | 6.2 | 5.7 | 4.1 | 3.2 |
| Profit/loss after tax | 99 | 69 | 172 | 94 | 312 | 234 | 215 | 142 | 86 |
| Balance sheet | 3,208 | 1,806 | 3,208 | 1,806 | 3,208 | 3,170 | 2,144 | 1,697 | 1,471 |
| Equity/assets ratio, % | 52 | 33 | 52 | 33 | 52 | 50 | 27 | 25 | 24 |
| Return on equity, % | 19 | 39 | 19 | 37 | 28 | 22 | 43 | 37 | 30 |
| Operating capital | 630 | 455 | 630 | 455 | 630 | 785 | 270 | -17 | -29 |
| Interest-bearing net cash (+) / net debt (-) |
684 | -189 | 684 | -189 | 684 | 477 | -7 | 173 | 114 |
| Cash flow from operating activities |
72 | -38 | 66 | -86 | -86 | -237 | -63 | 141 | 134 |
| Equity related key ratios | |||||||||
| Earnings per share , SEK*** | 3.05 | 3.01 | 5.32 | 4.12 | 10.54 | 9.39 | 9.40 | 6.16 | 3.73 |
| Equity per share, SEK | 51.21 | 25.52 | 51.21 | 25.52 | 51.21 | 49.17 | 24.81 | 18.19 | 15.50 |
| Number of shares at the end of the period (thousands)**** |
32,340 | 22,950 | 32,340 | 22,950 | 32,340 | 32,340 | 22,950 | 22,950 | 22,950 |
| Average number of shares (thousands)**** |
32,340 | 22,950 | 32,340 | 22,950 | 29,581 | 24,913 | 22,950 | 22,950 | 22,950 |
| Segment reporting | |||||||||
| Financial key ratios | |||||||||
| Revenue | 911 | 1,124 | 1,725 | 2,025 | 3,501 | 3,801 | 3,905 | 3,652 | 2,838 |
| Operating profit | 68 | 86 | 133 | 110 | 277 | 254 | 192 | 171 | 105 |
| Operating margin, % | 7.5 | 7.7 | 7.7 | 5.4 | 7.9 | 6.7 | 4.9 | 4.7 | 3.7 |
| Profit/loss after tax | 77 | 79 | 141 | 103 | 306 | 268 | 187 | 163 | 100 |
| Balance sheet | 3,087 | 1,596 | 3,087 | 1,596 | 3,087 | 2,872 | 1,893 | 1,599 | 1,454 |
| Equity/assets ratio, % | 55 | 39 | 55 | 39 | 55 | 57 | 31 | 29 | 27 |
| Return on equity, % | 18 | 32 | 18 | 31 | 27 | 24 | 35 | 38 | 33 |
| Operating capital | 506 | 328 | 506 | 328 | 506 | 575 | 177 | -110 | -43 |
| Interest-bearing net cash (+) / net debt (-) |
905 | -12 | 905 | -12 | 905 | 928 | 129 | 308 | 151 |
| Cash flow from operating activities |
92 | -3 | 216 | -46 | 166 | -95 | -73 | 240 | 179 |
| Equity related key ratios | |||||||||
| Earnings per share , SEK*** | 2.37 | 3.45 | 4.37 | 4.48 | 10.35 | 10.75 | 8.15 | 7.09 | 4.37 |
| Equity per share, SEK Number of shares at the end of |
52.02 | 26.91 | 52.02 | 26.91 | 52.02 | 50.92 | 25.78 | 20.27 | 16.66 |
| the period (thousands)**** | 32,340 | 22,950 | 32,340 | 22,950 | 32,340 | 32,340 | 22,950 | 22,950 | 22,950 |
Average number of shares
| New orders | 1,473 | 433 | 2,240 | 1,066 | 4,406 | 3,232 | 3,850 | 3,077 | 3,604 |
|---|---|---|---|---|---|---|---|---|---|
| Order backlog | 3,666 | 2,864 | 3,666 | 2,864 | 3,666 | 3,201 | 3,752 | 3,634 | 4,037 |
| No of employees at end of period | 328 | 308 | 328 | 308 | 328 | 311 | 305 | 288 | 261 |
(thousands)**** 32,340 22,950 32,340 22,950 29,581 24,913 22,950 22,950 22,950
For key ratio definitions, see page 24.
* The key ratios for the Group are shown above, both in accordance with IFRS and the segment accounting applied for internal control and monitoring, see Note 2 on page 21 for further information.
** As of 2019, IFRS 16 Leasing is applied. The years up to and including 2018 have not been recalculated, as the change has little effect on earnings.
*** The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.
Thanks to strong recovery in the construction market and our determined efforts to strengthen our project development operations, we can report a very strong first six months. Based on the segment reporting, our operating profit amounted to SEK 68 million for the second quarter and SEK 133 million for the sixmonth period. Moreover, our order intake was SEK 1.5 billion in the second quarter and SEK 2.2 billion since the start of the year.
Looking at the rolling 12-month period, we had an operating profit of SEK 277 million based on the segment reporting and an order intake of SEK 4.4 billion. These figures are better than in any of the Wästbygg Group's previous financial years. In terms of volumes, we are still feeling the effects of the decline in orders in spring 2020, although revenues are expected to rise as new projects enter production.
Demand for housing continues to be high. Our project development operations are benefiting strongly from our extensive residential portfolio. During the first half of the year, we took a decision to start production of four self-developed projects. Moreover, in August we acquired a construction-ready project in Täby, which will commence during the autumn. We are also planning further sales launches later this year, and the interest we receive from the market will determine when we can commence construction. In July and August we have also sold two projects with a total of 230 rental apartments.
In Commercial, we have seen welcome recovery in the construction market with regard to new projects. This mainly applies to the medium-sized segment. We are working intently to increase the number of development projects in this business area as well. Community service properties continue to be a priority area, but we will also selectively seek other types of projects where we see interesting potential. One example is the development and construction of a hotel in the port of Varberg. We became partner in this project in the spring.
Demand in Logistics and Industry remains very high, both for construction assignments and development projects. The contract signed with Nobia for construction of their new 123,000 sqm
production facility signals confidence in our ability to handle very large projects. We are currently looking to recruit new staff to build up an organisation at the heart of the expansive northern Swedish market. Several leading industrial companies are planning to set up or expand business in this area, where our product has excellent competitive potential. The Nobia contract, together with our project in progress for Northvolt as well as earlier projects for logistics and e-commerce companies, increases our attractiveness in this regard.
We have also taken a strategic decision to acquire logistics and industrial land in attractive locations. It gives us a strong competitive edge to be able to offer our logistics and industrial customers a complete package of land, development and construction. In Q2, we gained a landbank with a total area of approximately 600,000 sqm in Sweden and Norway through acquisition and partnerships.
At the beginning of May, we became one of a handful of companies in Sweden, and the only company with construction projects of our scope, to have our shares classified as green. At that time, we published a green framework that includes green financing and green shares. A month later, the Wästbygg Group became one of the first companies in Sweden to apply for and be approved for Nasdaq Green Equity Designation, which makes us more visible to investors seeking sustainable investments and confirms our ambition to be a leader in this area.
The rising costs of materials and uncertainty regarding the supply of concrete going forward are two factors of concern. We are closely monitoring price trends in each project as well as the overall purchasing climate. The rising costs have only affected our projects very marginally so far, but it would be unfavourable if the market slowed due to excessive construction costs.
Meanwhile, the Covid situation appears to be developing in the right direction since Sweden has achieved a high vaccination rate. There is a positive mood both at work and in private, which is improving as more meeting spaces open up. I am pleased that Wästbygg has chosen to work proactively throughout the pandemic in line with the strategy we adopted several years ago, which we defined even more clearly in connection with our stock market listing last autumn. We are seeing the results now, as all our three business areas display an upward trend.
However, we are not only strong financially. Never before has the company had so much expertise. We have boosted our organisation with specialists in business-critical areas such as purchasing, digitasation and health and safety. Meanwhile, we have created even better conditions for our project development and construction contracts, by having a common organisation where close collaboration improves our capacity to handle more and larger projects.
Stronger and more sustainable than ever, we celebrate our 40th anniversary this year and look forward to a very exciting autumn.
Jörgen Andersson CEO Wästbygg Gruppen AB
The Swedish economy is deemed to have potential for almost 4 percent growth this year, based on a number of recent assessments. The trend is driven by increased private consumption, gross investments and increased public consumption. Many households are relatively well prepared for a rise in consumption thanks to pent-up consumer demand, a desire to travel, growing savings and an appetite for investment, primarily due to rising share ownership and a very strong rise in prices and demand in the residential property market. Although unemployment has soared during the pandemic and impacted already vulnerable groups, the negative situation is expected to peak this year with a marginal increase from 2020. The ongoing vaccination programme, along with a hope of seeing most restrictions lifted by the end of the summer, is creating positive expectations, and this is reflected in the Economic Tendency Survey of the National Institute of Economic Research. After two weak years, investment activity is also expected to gain momentum this year and pick up still further in 2022. The background to this is rising demand in the industry and increased capacity utilisation combined with an upsurge in construction investment.
Residential construction will likely gather fresh momentum in 2022, when production of single-family and multi-residential housing is expected to increase due to a strengthening economy and an improved job market. Uncertainty in the office, trade and meeting industries with regard to changes in behaviours and consumer patterns in the future could cause planned projects to be downsized or postponed.
The combined investments in the Wästbygg Group's three business areas are estimated to have increased by just over 8 percent during 2020, measured in initiated investments. Continued growth is projected this year, but at half the speed. However, the outcome of the total investments during Q1 suggests that growth could be considerably stronger. Nevertheless, it is not advisable to read too much into a single quarter, since statistics can be erratic and may be adjusted retroactively.
Preliminary work began on just over 13,000 apartments in multiresidential buildings during Q1 of this year. This marked a 10 percent increase on the same period in 2020. The trend in Q1 showed that the growth rate in 2020 has been sustained. NAVET Analytics has adjusted its forecast for the full 2021 financial year from -10 percent to -3 percent based on the strong start to the year.
The National Board of Housing, Building and Planning judges that an average of 62,000 homes per year need to be built between 2020 and 2029 if the housing shortage is to be resolved through property construction. Even to only meet the projected population growth, 41,000 to 43,000 homes will need to be built annually.
The combined volume of initiated building construction for the Commercial business area is estimated to have been SEK 20 billion during Q1 of this year. Most of this volume (65 percent) consisted in investments in community service properties. Initiated building construction investments in offices and retail premises amounted to just over SEK 7 billion in Q1 of this year. If the rate of investment were to continue for the rest of the year, the total annual volume in the business area might increase by 25 percent compared with 2020. The rate of investment in offices indicates that volumes will remain largely unchanged compared to 2020,
while business premises appear to be headed towards a sharp upswing. The trend in community service properties was fragmented. The trend suggests a decline in care homes/sheltered housing this year, while construction of school premises could rise by over 50 percent. Low interest rates combined with government grants are having a beneficial effect on municipal investments. However, a more stringent fiscal policy as well as uncertainty regarding the 2022 Swedish general election could dampen investments in the longer term.
The combined volume of initiated building construction investments in the Logistics and Industry business area was just over SEK 9 billion in Q1 of 2021. The industry's building construction investments accounted for 70 percent of this volume. If the investment rate stays the same for the remaining three quarters of the year, this could mean an increase of almost 70 percent for the full year. In this case, sizeable projects in the industry were the main factor behind the strong quarterly result. Warehouse/storage facilities also saw strong development. However, the extent to which logistics centres initiated building construction investments was relatively modest, and the annual rate suggests that the outcome for the full year will be similar to 2019.
The National Institute of Economic Research's Economic Tendency Survey indicates a far more buoyant climate than usual in the manufacturing industry, and capacity utilisation is now approaching 90 percent. Warehouse and logistics are in a phase of longterm growth driven by buoyant and maturing e-commerce, population growth and an interest in building up buffer stocks in response to the materials shortages and delivery problems caused by the pandemic.
The total volume of building construction investments in Norway rose by just under 10 percent in 2020. The forecast for 2021 has been adjusted positively since the previous report, thanks to a strong Q1 and positive signals with regard to planning permission. This positive trend is primarily driven by investments in premises.
Denmark's economy is estimated to have shrunk by just over 2.5 percent during 2020, which was a better outcome than projected. A relatively modest upswing is expected this year, with growth of roughly 3 percent.
Warehouse and logistics investments are largely concentrated in Zealand and near Copenhagen. The Fehmarn Belt Fixed Link between Denmark and Germany currently under construction is expected to make Zealand even more attractive for investments in the longer term.
The Finnish economy is estimated to have declined by just under 3 percent in 2020, while a 3 percent rise appears possible this year. Consumption is deemed the main factor driving the recovery.
After last year's combined rise in building construction amounting to roughly 7 percent, a slight decline of around 2 percent is expected this year. Industrial building construction stands out in this context, with growth projected of approximately 20 percent.
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 eight 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, and our expertise ranges from land acquisition/ allocation to completed properties. The group also includes the company Inwita Fastigheter, which owns and manages self-developed community service properties.
All our ongoing and completed projects are presented on our website, wastbygg.se.
The Wästbygg Group's business concept is to develop and build sustainable, modern and efficient homes, commercial properties and logistics and industrial facilities in mutual trust with our customers. 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: Miljöbyggnad, Svanen, 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 quality and environmental management procedures. Today, we use a selfdeveloped management system with detailed procedures and schedules in the areas of quality, environmental care and occupational health and safety. The group company Wästbygg Entreprenad AB is certified according to ISO 9001, 14001 and 45001.
Wästbygg's five group strategies are set out in the group's business plan. They are designed to promote long-term development in areas defined as business-critical. The five strategies are:
A set of long-term goals is linked to each strategy.
A description of the company's business model can be found in the annual report for 2020.
Growth measured on the basis of revenue must be 10 percent over time, but always taking into account good profitability.
The long-term operating margin (EBIT) must exceed 6 percent. 30 June 2021: 7.7 percent
The equity/assets ratio shall not be less than 25 percent 30 June 2021: 55 percent.
In early May, as a natural part of its sustainability efforts, The Wästbygg Group launched a green framework that qualifies the company for green labelling of its share and debt instruments. The framework improves transparency regarding the company's climate commitments, and also serves as an internal control instrument when making business decisions.
Wästbygg's revenues, operating expenditures and investments for 2020, both from contract assignments and project development, were classified in shades of green and yellow by CICERO Shades of Green through a Company Assessment. The half-year figures on the share of green revenues, operating expenditure, investments and order backlog are based on Wästbygg's own calculations. The company intends to report on sustainability data quarterly, starting from this half-year report.
* Cicero Shades of Green, Company Assessment, June 2021.
** Estimated by definition in Wästbygg Group's Green Finance Framework, May 2021.
SICK LEAVE
The Wästbygg Group has reported one of its strongest quarters ever in terms of order intake. Partly as a result of this, the order intake for the rolling 12-month period was higher than in any calendar year in the group's history. Meanwhile, the group's order backlog rose to a level almost on a par with 2018 and 2019.
Alongside a major residential project and an extensive industrial project, which together represent just over half of total orders, project development operations in Residential continue to perform strongly. Two self-developed projects commenced construction during the second quarter.
The Commercial business area is also slowly starting to recover after a slump that lasted throughout the pandemic, with several new project orders received.
The rate of production remained high during the first six months. Several major projects have been completed or are in their final phase.
ORDER BACKLOG
SEK million
| SEK million | Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Residential | 542 | 172 | 838 | 285 | 1,637 | 1,084 |
| Commercial | 262 | 109 | 355 | 185 | 436 | 266 |
| Logistics and industry | 669 | 152 | 1 047 | 596 | 2,333 | 1,882 |
| Total | 1,473 | 433 | 2,240 | 1,066 | 4,406 | 3,232 |
30 Jun 2020 31 Dec 2020
30 Jun 2021
Residential 1,552 832 1,173 Commercial 424 568 265 Logistics and industry 1,690 1,464 1,763 Total 3,666 2,864 3,201
Wästbygg's seasonal variations are mainly linked to new orders and revenue.
The level of new orders 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 new orders.
As a result of COVID-19, the pattern has changed slightly in 2020 when it comes to new orders.
Wästbygg builds apartment buildings for private and municipal clients. The company also develops and builds its own residential projects. Construction assignments continue to dominate our current production. However, our aim is for self-developed residential projects to make up 50 percent of production. As of 30 June, revenues from self-developed projects made up 45 percent of total revenue, compared to 22 percent a year ago, due to a combination of a higher number self-developed projects and a reduced volume of construction assignments.
Revenues in this business area fell by 30 percent in the first six months compared to 2020. Six large residential projects have been completed since the start of the year, all of which had been in production for over a year. New projects have not commenced at the same rate. The three projects included in the order intake for the second quarter will not generate any significant revenue until later in the autumn. Meanwhile, further projects from our self-developed portfolio are being prepared for sales launch during the autumn, and the company also sees possibilities to increase the number of construction assignments.
Demand for the company's apartments remains high. Sales were launched for the Strandängen project in Falkenberg and phase two of Hökälla Ängar in Gothenburg during the second quarter. Both projects consist of terraced houses. The terraced houses in Strandängen sold out very quickly, and a decision was made to start construction. Sales of Hökälla Ängar were launched later, and half of those terraced houses are already reserved.
At the end of the period, apartments were being sold in four self-developed projects. Tenants have moved into the apartments in one of these projects. These four projects comprise a total of 228 residential properties, of which 164 had been sold and 27 reserved as of the end of the quarter. In the project that was ready for occupancy in the second quarter, four apartments remained unsold as of 30 June. A further project in addition to Strandängen is sold out and has started production.
The order intake during the quarter was strong and features a desirable mix of construction assignments and self-developed projects.
| REVENUE AND PROFIT (SEK million) |
Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jan-Dec 2020 |
|---|---|---|---|---|---|
| Revenue | 224 | 346 | 480 | 682 | 1,122 |
| – of which construction | 119 | 271 | 265 | 536 | 812 |
| – of which project development | 105 | 76 | 215 | 147 | 310 |
| 5 | 8 | 12 | 0 | ||
| Profit PRODUCTION, NO OF APARTMENTS Completed during the second quarter |
8 200 |
The Commercial business area primarily builds retail properties, offices and community service properties. The majority of the projects are currently construction assignments. The company also develops and builds its own commercial projects, with the emphasis on community service properties.
Wästbygg's commercial operations are predominantly focused on the three metropolitan regions and on the company's other office locations. In cases where commercial projects are carried out elsewhere, it is primarily for repeat customers.
The commercial business area reported negative earnings resulting from a weak order intake throughout 2020. Four large commercial projects were completed during the first six months, but no new projects of the same magnitude have been added. Meanwhile, the company opted to keep the commercial organisation intact, since the market was showing signals of recovery. The signals proved accurate during the second quarter, when contracts were signed for four new projects.
In community service properties, Wästbygg has signed two new contracts for prison extensions. The self-developed sheltered housing project Kv Häggen in Halmstad was completed. The apartments are currently being rented out in partnership with a company in Halmstad, and the first tenant will move in during August.
| BUSINESS AREA COMMERCIAL IN FIGURES | |||
|---|---|---|---|
| REVENUE AND PROFIT (SEK million) |
Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jan-Dec 2020 |
||
|---|---|---|---|---|---|---|---|
| Revenue | 94 | 274 | 194 | 467 | 844 | ||
| – of which construction | 83 | 173 | 169 | 338 | 706 | ||
| – of which project development | 11 | 101 | 25 | 129 | 138 | ||
| Profit | -5 | 14 | -5 | 18 | 31 | ||
| PRODUCTION, NO OF SQM | |||||||
| Completed during the second quarter 8,600 |
|||||||
| Ongoing June 30, construction | 63,185 | ||||||
| Ongoing June 30, project development | 0 |
Total in progress 63,185
DISTRIBUTION BY PROJECT TYPE, no of sq.m.
Operations in Wästbygg's logistics and industry segment 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 has been strong for several years and currently shows no signs of cooling off. However, more players have been attracted by this positive trend, which has resulted in increased competition.
Logistic Contractor's revenue and profit from one period to another is strongly influenced by the number of development projects the company works on. A 55,000 sqm self-developed property was handed over during the second quarter in Örebro, which will be used as a central warehouse for the discount chain Dollarstore. Another major development project was handed over earlier in the year.
The contract for Northvolt in Skellefteå will continue until at least the end of the year. Most of the work on the four buildings is completed, although additional smaller but relatively time-consuming works have arisen. This means that some employees will continue to work at the site for a while. Besides Northvolt, other large industrial investments are being planned in Norrbotten and Västerbotten over the coming five years. It was therefore decided that Logistic Contractor will establish operations in the region, probably based in Luleå. A recruitment process for a project manager and a business developer began during the summer.
Ensuring access to land in prime logistics and industrial locations is a strategically important complementary step in Logistic Contractor's continued development in Sweden as well as neighbouring Nordic countries. During the second quarter, three contracts were signed comprising a total of almost 600,000 sqm of land (see agreements). Having our own land is very important in Norway, Denmark and Finland, where access to municipal industrial land is considerably more limited than in Sweden. For this reason, work is under way in all three countries to identify
Total in progress 362,200
further opportunities for land acquisitions or partnerships with land owners.
In February, a contract was signed with a major transport and logistics company regarding a 39,000 sqm logistics facility in Eskilstuna. Due to a condition in the contract, it was not possible to publish the client's name in the previous interim report. We can now announce that the transport and logistics company in question is Frode Laursen.
0 500
Sweden
Q3 2020 Q4 2020 Q1 2021 Q2 2021
order backlog new orders
| BUSINESS AREA LOGISTICS AND INDUSTRY IN FIGURES | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| REVENUE AND PROFIT (SEK million) |
Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jan-Dec 2020 |
Nobia's production facility in Jönköping. |
||||
| Revenue Sweden | 527 | 349 | 918 | 595 | 1,513 | |||||
| Revenue abroad | 67 | 156 | 133 | 282 | 322 | |||||
| Revenue total | 594 | 505 | 1,051 | 877 | 1,835 | |||||
| – of which construction | 383 | 380 | 659 | 692 | 1,233 | |||||
| –of which project development | 211 | 125 | 392 | 185 | 601 | |||||
| Profit | 77 | 75 | 141 | 107 | 274 | |||||
| PRODUCTION, NO OF SQM Completed during the second quarter |
77,300 | DISTRIBUTION OF REVENUE | NEW ORDERS/ORDER BACKLOG SEK million Abroad 2000 |
|||||||
| Ongoing June 30, construction Ongoing June 30, project development |
317,200 45,000 |
13 % | 1500 1000 |
87 %
| Project, municipality | Type | No of apts. |
Total area (sqm) |
Phase | Start of production |
Completion |
|---|---|---|---|---|---|---|
| Tuvebo Atelje, Göteborg | Self owned | 71 | 4,679 | Production | 2020 | 2021 |
| Lagerkransen 3, Lund | Rental | 83 | 4,696 | Production | 2020 | 2022 |
| Vårberg youth housing, Stockholm | Rental | 174 | 5,967 | Production | 2020 | 2022 |
| Parklyckan, Stockholm | Self owned | 36 | 4,026 | Production | 2021 | 2022 |
| Strandängen 1, Falkenberg | Self owned | 29 | 2,445 | Production | 2021 | 2022 |
| Kv Trädgårn, Svedala | Rental | 53 | 3,768 | Production | 2021 | 2023 |
| Soluret, Malmö | Self owned | 45 | 3,240 | Production | 2021 | 2023 |
| Totalt | 491 | 28,821 |
| Project, municipality | Type | No of apts. |
Total area (sqm) |
Phase | Estimated start of production |
Estimated completion |
|---|---|---|---|---|---|---|
| Cityterrassen, Malmö | Self owned | 170 | 12,460 | ZP in effect | 2021 | 2024 |
| Hökälla Ängar, phase 2, Göteborg | Self owned | 36 | 3,589 | ZP in effect | 2021 | 2023 |
| Journalen 1, Malmö | Rental | 177 | 9,622 | ZP in effect | 2022 | 2024 |
| Östra Station, Kävlinge | Self owned | 69 | 6,802 | ZP in effect | 2022 | 2024 |
| Bollen preschool, Trelleborg | CSP | 0 | 900 | ZP in effect | 2022 | 2023 |
| Borstahusen, Landskrona | Self owned | 60 | 4,300 | ZP in effect | 2022 | 2024 |
| Fridhem, Ängelholm | Self owned | 80 | 5,200 | ZP in effect | 2022 | 2024 |
| Tuvebo Glashytta, Göteborg | Self owned | 45 | 2,673 | ZP in effect | 2022 | 2023 |
| Lillhagsparken, phase 2C, Göteborg | Self owned | 42 | 3,276 | ZP in effect | 2022 | 2024 |
| Tjärleken, Norrtälje | Self owned | 139 | 10,750 | ZP in effect | 2022 | 2024 |
| Västerport, Varberg | Hotel | 0 | 18,250 | Ongoing work ZP | 2023 | 2026 |
| Strandängen 2, sheltered housing, Falkenberg |
CSP | 80 | 5,280 | Ongoing work ZP | 2023 | 2024 |
| Strandängen 2, care home, Falkenberg | CSP | 60 | 3,800 | Ongoing work ZP | 2023 | 2024 |
| Citadellsfogen, Malmö | Self owned | 70 | 4,550 | Ongoing work ZP | 2024 | 2026 |
| Skarpnäck, Stockholm | Rental | 126 | 5,659 | ZP in effect | 2024 | 2026 |
| Skarpnäck preschool, Stockholm | CSP | 0 | 860 | ZP in effect | 2024 | 2026 |
| Norra Saltskog, Södertälje | Self owned | 49 | 3,055 | Ongoing work ZP | 2024 | 2026 |
| Vallastråket, Stockholm | Self owned | 70 | 4,200 | Ongoing work ZP | 2024 | 2026 |
| Lilla Essingen Parkhuset, Stockholm | Self owned | 24 | 1,849 | ZP in effect | 2025 | 2027 |
| Solberga, Stockholm | Self owned | 35 | 4,025 | No ZP | 2025 | 2027 |
| Kv Galten, Lund | Rental/Commercial | 60 | 9,780 | Ongoing work ZP | 2026 | 2029 |
| Kv Galten, Lund | Self owned | 90 | 6,240 | Ongoing work ZP | 2026 | 2029 |
| Solvalla hotel, Stockholm | Hotel | 0 | 6,900 | No ZP | 2026 | 2028 |
| Solvalla youth housing, Stockholm | Rental | 120 | 4,115 | No ZP | 2026 | 2028 |
| Lilla Essingen Strandhusen, Stockholm | Self owned | 74 | 6,032 | ZP in effect | 2026 | 2028 |
| Svandammsplan, Stockholm | Self owned | 53 | 3,010 | No ZP | 2026 | 2027 |
| Årsta phase 4a, Stockholm | Self owned | 79 | 5,401 | Ongoing work ZP | 2026 | 2028 |
| Årsta phase 4b, Stockholm | Rental | 231 | 11,764 | Ongoing work ZP | 2026 | 2028 |
| Västra Roslags-Näsby, Täby | Self owned | 40 | 2,951 | ZP in effect | 2027 | 2028 |
| Årsta phase 2n, Stockholm | Self owned | 237 | 14,506 | Ongoing work ZP | 2028 | 2030 |
| Total | 2,316 | 181,799 |
| Municipality | Type | Area sqm |
|---|---|---|
| Enköping | Acquisition | 133,000 |
| Nyköping | Joint venture | 400,000 |
| Sande, Norway | LOI for Joint venture | 45,000 |
| Total | 578,000 |
ZP = Zoning plan
| SEK million | Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Revenue | 1,051 | 1,050 | 1,951 | 1,976 | 3,595 | 3,620 |
| Costs in production | -886 | -913 | -1,647 | -1,761 | -3,018 | -3,132 |
| Gross profit/loss | 165 | 137 | 304 | 215 | 577 | 488 |
| Sales and administration costs | -75 | -63 | -140 | -117 | -292 | -269 |
| Other operating revenue | 1 | 3 | 2 | 4 | 2 | 4 |
| Other operating costs | – | 0 | 0 | 0 | 0 | 0 |
| Other profit/loss | 91 | 77 | 166 | 102 | 287 | 223 |
| Profit/loss from financial items | ||||||
| Profit shares from joint ventures and associated companies | 0 | 0 | 0 | 0 | 0 | 0 |
| Financial revenue | 4 | 4 | 4 | 5 | 8 | 9 |
| Financial costs | -2 | -2 | -3 | -5 | -5 | -7 |
| Profit after financial items | 93 | 79 | 167 | 102 | 290 | 225 |
| Change in value of real estate | 0 | - | 1 | - | 7 | 6 |
| Profit before tax | 93 | 79 | 168 | 102 | 297 | 231 |
| Taxes | 6 | -10 | 4 | -8 | 15 | 3 |
| Profit for the period | 99 | 69 | 172 | 94 | 312 | 234 |
| Profit relating to: - the parent company's shareholders |
99 | 69 | 172 | 94 | 312 | 234 |
| - holdings without controlling influence | 0 | 0 | 0 | 0 | 0 | 0 |
| Earnings per share, SEK* | 3.05 | 3.01 | 5.32 | 4.12 | 10.54 | 9.39 |
| Number of shares at the end of the period (thousands) | 32,340 | 22,950 | 32,340 | 22,950 | 32,340 | 32,340 |
| Average number of shares (thousands) | 32,340 | 22,950 | 32,340 | 22,950 | 29,581 | 24,913 |
* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.
| SEK million | Apr-Jun 2021 |
Apr-jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Profit for the period | 99 | 69 | 172 | 94 | 312 | 234 |
| Other comprehensive income that can be transferred to the income statement |
||||||
| Currency difference when translating foreign operations | -1 | 0 | 1 | -2 | 1 | -2 |
| Comprehensive income for the period | 98 | 69 | 173 | 92 | 313 | 232 |
| Total result attributable to: - the parent company's shareholders - holdings without controlling influence |
98 0 |
69 0 |
173 0 |
92 0 |
313 0 |
232 0 |
The Wästbygg Group reported yet another strong quarter. Revenues are on a par with the previous year at SEK 1,051 million (1,050). However, the profit was considerably stronger, with operating profit amounting to SEK 91 million (77). The difference is due to increased profitability in Logistics and Industry and to the fact that a large self-developed tenant-ownership project was recognised in its entirety in the income statement after production was completed.
Profit after tax amounted to SEK 99 million (69), which corresponds to earnings per share of SEK 3.05 (3.01). The operating margin was 8.7 percent (7.3).
Order intake is traditionally strong in the second quarter, and this year was no exception. The order intake for the second quarter was SEK 1,473 (433) and was distributed over all three business areas. However, a comparison with 2020 is not representative because at that time the market was affected by the COVID-19 pandemic. In Residential, in line with its plan to increase the share of project development, the company decided to start production of two new development projects. In addition to the new contracts signed, the order intake was positively affected by numerous supplementary orders related to projects in progress.
The order backlog was SEK 3,666 million (2,864) as of 30 June. This implies that the order backlog is gradually returning to the pre-pandemic level.
Revenues for the six-month period are also roughly equivalent to those of the previous year at SEK 1,951 million (1,976). Volumes have been affected by the termination of several large projects in the first two quarters of the year. However, a strong order intake was reported, which will generate rising volumes going forward.
Operating profit was stronger than in 2020, amounting to SEK 166 million (102). Two self-developed tenant-ownership projects were completed and recognised in their entirety in the income statement during the first six-month period, after a production time of almost two years.
Profit after tax amounted to SEK 172 million (94), corresponding to earnings per share of SEK 5.32 (4.12).
The total order intake was SEK 2,240 million (1,066).
As the Wästbygg Group works with large projects of long duration, comparisons between individual quarters are seldom wholly representative. Revenues for the rolling 12-month period amounted to SEK 3,595 million, compared to SEK 3,620 million for the full 2020 financial year. Operating profit amounted to SEK 287 million, compared to SEK 223 million. With an order intake of SEK 4,406 million for the rolling 12-month period compared to SEK 3,232 million for the full 2020 financial year, there are good prospects for continued positive development for the remainder of the year.
At the end of the period the group had 328 employees, compared with 311 at the start of the year. Throughout the COVID-19 pandemic, the group has worked with full staffing, and no redundancies or other reductions have been required.
Alongside the strong order intake during the first six months, the number of employees has also grown and there is a need to further increase the organisation's staff during the autumn.
| SEK million | 30 Jun 2021 |
30 Jun 2020 |
31 Dec 2020 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible fixed assets Goodwill |
229 | 229 | 229 |
| Other intangible fixed assets | 9 | 7 | 8 |
| Total | 238 | 236 | 237 |
| Tangible fixed assets Investment properties |
75 | 24 | 59 |
| User rights assets | 28 | 36 | 30 |
| Inventory, tools and installations | 4 | 7 | 6 |
| Total | 107 | 67 | 95 |
| Financial fixed assets | |||
| Shares in joint ventures and associated companies | 11 | 11 | 11 |
| Deferred tax receivables | 48 | 34 | 42 |
| Non-current financial assets | 0 | 0 | 0 |
| Total | 59 | 45 | 53 |
| Total fixed assets | 404 | 348 | 385 |
| Current assets | |||
| Development properties, etc. | 265 | 89 | 75 |
| Tenant-owner association flats of own development under production | 421 | 568 | 740 |
| Accounts receivable | 427 | 347 | 506 |
| Accrued but not invoiced | 299 | 272 | 272 |
| Tax receivables | 25 | 12 | 26 |
| Receivables from group companies | 12 | 12 | 12 |
| Other receivables | 417 | 62 | 277 |
| Prepaid costs and accrued income | 14 | 16 | 17 |
| Cash and cash equivalents | 924 | 80 | 860 |
| Total current assets | 2,804 | 1,458 | 2,785 |
| TOTAL ASSETS | 3,208 | 1,806 | 3,170 |
| SEK million | 30 Jun 2021 |
30 Jun 2020 |
31 Dec 2020 |
|---|---|---|---|
| TOTAL EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 4 | 3 | 4 |
| Other contributed capital | 946 | 83 | 946 |
| Retained earnings | 533 | 408 | 408 |
| This year's comprehensive income | 173 | 92 | 232 |
| Total equity attributable to the company's shareholders | 1 656 | 586 | 1 590 |
| Holdings without controlling influence | 4 | 3 | 3 |
| Total equity | 1,660 | 589 | 1 593 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | |||
| Liabilities to group companies | - | 30 | - |
| Liabilities to credit institutions | 107 | 0 | 58 |
| Debts user rights | 15 | 22 | 16 |
| Total | 122 | 52 | 74 |
| Non-current non-interest-bearing liabilities | |||
| Deferred tax liabilities | 4 | 2 | 4 |
| Other provisions | 67 | 23 | 63 |
| Total | 71 | 25 | 67 |
| Total non-current liabilities | 193 | 77 | 141 |
| Current liabilities | |||
| Current interest-bearing liabilities | |||
| Liabilities to credit institutions | 115 | 204 | 304 |
| Debts user rights | 15 | 17 | 16 |
| Overdraft facility | - | 8 | - |
| Total | 130 | 229 | 320 |
| Current non-interest-bearing liabilities | |||
| Accounts payable | 280 | 342 | 247 |
| Advance from customer | 498 | 267 | 362 |
| Tax liabilities | 0 | 0 | 2 |
| Other liabilities | 325 | 198 | 376 |
| Accrued expenses and prepaid income | 122 | 104 | 129 |
| Total | 1,225 | 911 | 1,116 |
| Total current liabilities | 1,355 | 1,140 | 1,436 |
| TOTAL EQUITY AND LIABILITIES | 3,208 | 1,806 | 3,170 |
| Interest-bearing assets | 936 | 92 | 872 |
|---|---|---|---|
| Interest-bearing liabilities | 252 | 281 | 395 |
| Interest-bearing net cash/net debt | 684 | -189 | 477 |
| Changes in the Group's equity in summary | ||||
|---|---|---|---|---|
| SEK million | Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|
| Equity attributable to the parent company's owners | ||||
| Amount at the beginning of the period | 1,590 | 569 | 586 | 569 |
| New issue of shares | – | – | 901 | 901 |
| Transaction costs new issue of shares | – | – | -37 | -37 |
| Dividend | -107 | -75 | -107 | -75 |
| Comprehensive income for the period | 173 | 92 | 313 | 232 |
| Amount at the end of the period | 1,656 | 586 | 1,656 | 1,590 |
| Holdings without controlling influence | ||||
| Amount at the beginning of the period | 3 | 3 | 3 | 3 |
| Comprehensive income for the period | 0 | 0 | 0 | 0 |
| Amount at the end of the period | 4 | 3 | 4 | 3 |
| TOTAL EQUITY | 1,660 | 589 | 1,660 | 1,593 |
The Wästbygg Group has a strong cash position resulting from the share issues and the listing on Nasdaq Stockholm in 2020, along with a positive earnings trend for several years. Furthermore, we handed over five self-developed projects during the first six months: two in Residential, one in Commercial and two in Logistics and Industry. Numerous investments were made during the same period, but the net effect on cash flow during the first six months is still positive. However, the company is now entering a different phase, with the startup of several new development projects.
Equity per share amounted to SEK 51.21 (25.52) at the end of the period.
The Group reported interest-bearing net cash of SEK 684 million (-189) at the end of the period. The net cash amounted to SEK 477 million (-7) on 1 January.
The Other receivables item includes the purchase consideration for a non-consolidated project property in Borås acquired during the first quarter, and a claim related to a previously consolidated self-developed residential project which is no longer under Wästbygg's control. Final settlement is due later this year. The Development properties item includes a land acquisition of logistics and industrial land in Enköping for SEK 165 million.
The equity ratio at the end of the period was 52 percent (33). The Group's strong equity ratio is a result of the new share issue in 2020 as well as a positive earnings trend so far this year. On the other hand, it is held back by non-extracted gains in selfdeveloped tenant-ownership projects currently in progress, as they will not be reported until completed.
The Annual General Meeting of 6 May adopted a dividend of SEK 3.30 per share, SEK 107 million in total, which was paid out on 14 May.
| SEK million | Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Day-to-day operations | ||||||
| Profit/loss before financial items | 91 | 77 | 166 | 102 | 287 | 223 |
| Adjustment for items not included in cash flow | -13 | 10 | 4 | 14 | 53 | 64 |
| Received interest | 4 | 4 | 4 | 5 | 8 | 9 |
| Paid interest | -2 | -2 | -3 | -5 | -5 | -7 |
| Paid tax | -5 | -4 | -1 | -10 | -7 | -16 |
| Cash flow from operating activities before changes in working capital |
75 | 85 | 170 | 106 | 337 | 273 |
| Cash flow from changes in working capital Increase (-)/decrease (+) of tenant-owner association |
||||||
| flats of own development in production Increase (-)/decrease (+) of accounts receivable |
-27 -130 |
-82 -95 |
-113 80 |
-34 21 |
-285 -85 |
-206 -144 |
| Increase (-)/decrease (+) of other operating receivables | -128 | 49 | -351 | 144 | -547 | -52 |
| Increase (+)/decrease (-) of accounts payable | 6 | 87 | 34 | -174 | -60 | -268 |
| Increase (+)/decrease (-) of operating liabilities | 276 | -82 | 246 | -149 | 555 | 160 |
| Cash flow from the day-to-day operations | 72 | -38 | 66 | -86 | -86 | -237 |
| Investment activities | ||||||
| Investments in businesses, including additional purchase sums | 0 | – | 0 | – | 0 | 0 |
| Acquisitions of intangible fixed assets | 0 | 0 | -1 | -1 | -3 | -3 |
| Investments in investment properties | -5 | -7 | -15 | -18 | -50 | -53 |
| Acquisitions of other tangible fixed assets | -6 | 0 | -7 | -1 | -10 | -4 |
| Cash flow from investing activities | -11 | -7 | -23 | -20 | -63 | -60 |
| Financing activities | ||||||
| New issue of shares | – | – | – | – | 901 | 901 |
| Transaction costs new issue of shares | – | – | – | – | -37 | -37 |
| Paid dividend | -107 | – | -107 | -75 | -107 | -75 |
| Amortisation of loan liabilities | 1 | -13 | -2 | -78 | -128 | -204 |
| Raised loan liabilities | 40 | 32 | 129 | 34 | 376 | 281 |
| Change of overdraft facility | – | 8 | – | 8 | -8 | – |
| Cash flow from financing activities | -66 | 27 | 20 | -111 | 997 | 866 |
| CASH FLOW FOR THE PERIOD | -3 | -18 | 63 | -217 | 849 | 569 |
| Cash and cash equivalents at the start of the period | 931 | 99 | 860 | 298 | 80 | 298 |
| Exchange rate difference in cash and cash equivalents | -4 | -1 | 1 | -1 | -5 | -7 |
| Cash and cash equivalents at the end of the period | 924 | 80 | 924 | 80 | 924 | 860 |
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. A negative cash flow from current operations during certain periods is completely in line with the company's strategy to increase the proportion of development projects.
Total cash flow during the second quarter amounted to SEK -3 million (-18), divided into current operations SEK 72 million (-38), investment operations SEK -11 million (-7) and financing operations SEK -66 million (27).
Cash flow from current operations during the second quarter was boosted by the handing over of three self-developed projects and charged with a land acquisition in Enköping.
The cash flow from financing operations includes an adopted dividend of SEK 107 million.
Total cash flow for the six-month period amounted to SEK 63 million (-217), divided into current operations SEK 66 million (-86), investment operations SEK -23 million (-20) and financing operations SEK 20 million (-111).
Five self-developed projects were handed over during the first six-month period, which had a positive effect on cash flow from current operations. Meanwhile, we have entered a period with several new development projects starting up, which has negatively affected cash flow and will continue to do so going forward.
Cash flow from investment operations was affected by the construction of the Kv Häggen sheltered housing project in Halmstad, which is being built for own ownership in the group company Inwita Fastigheter. Construction of the housing was completed in June.
Self-funded investments were carried out. In addition to the land acquisition carried out in the second quarter, a project property was acquired in Borås earlier in the year.
| SEK million | Apr-Jun 2021 |
Apr-jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Revenue | 24 | 22 | 48 | 42 | 71 | 65 |
| Other operating revenue | 0 | 0 | 0 | 0 | 0 | 0 |
| Total operating income | 24 | 22 | 48 | 42 | 71 | 65 |
| Staff costs | -17 | -14 | -30 | -24 | -54 | -48 |
| Other external costs | -16 | -21 | -29 | -35 | -71 | -77 |
| Operating profit/loss | -9 | -13 | -11 | -17 | -54 | -60 |
| Profit/loss from financial items | ||||||
| Other interest income and similar income items | 7 | 5 | 13 | 8 | 206 | 201 |
| Interest expenses and similar income items | -3 | -9 | -7 | -19 | -18 | -30 |
| Profit after financial items | -5 | -17 | -5 | -28 | 134 | 111 |
| Year-end appropriations | - | - | - | - | 83 | 83 |
| Profit before tax | -5 | -17 | -5 | -28 | 217 | 194 |
| Taxes | 1 | 4 | 1 | 6 | -5 | 0 |
| Profit for the period | -4 | -13 | -4 | -22 | 212 | 194 |
| SEK million | 30 Jun 2021 |
30 Jun 2020 |
31 Dec 2020 |
|---|---|---|---|
| ASSETS | |||
| Intangible fixed assets | 3 | 2 | 3 |
| Tangible fixed assets | 3 | 5 | 4 |
| Financial fixed assets | 115 | 321 | 320 |
| Total fixed assets | 121 | 328 | 327 |
| Current receivables | 1,211 | 494 | 1,134 |
| Cash and bank balances | 457 | - | 496 |
| Total current assets | 1,668 | 494 | 1,630 |
| TOTAL ASSETS | 1,789 | 822 | 1,957 |
| TOTAL EQUITY AND LIABILITIES | |||
| Restricted equity | 4 | 3 | 4 |
| Unrestricted equity | 1,307 | 339 | 1,418 |
| Total equity | 1,311 | 342 | 1,422 |
| Non-current liabilities | - | 30 | - |
| Current liabilities | 478 | 450 | 535 |
| TOTAL EQUITY AND LIABILITIES | 1,789 | 822 | 1,957 |
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 2020 on pages 81–87. Accounting principles and calculation methods for the Groupare unchanged compared with the annual report last year.
New or amended IFRS standards applied from 2021 have no or little impact on Wästbygg Gruppen's financial reporting.
Standards, amendments and interpretations concerning existing standards that have not yet entered into force and are not applied prematurely by the Group
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 Gruppen'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 I IN SUMMARY, SEK million |
Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| REVENUE | ||||||
| Residential | 224 | 346 | 480 | 682 | 920 | 1 122 |
| Of which internal sales | - | 0 | - | 2 | - | 2 |
| Commercial | 94 | 274 | 194 | 467 | 571 | 844 |
| Of which internal sales | - | - | - | - | - | - |
| Logistics and industry* | 594 | 505 | 1 051 | 877 | 2 009 | 1 835 |
| Of which internal sales | - | - | - | - | 0 | 0 |
| Other** | 24 | 22 | 48 | 42 | 71 | 65 |
| Of which internal sales | 24 | 22 | 48 | 42 | 71 | 65 |
| Group adjustments | -25 | -23 | -48 | -43 | -70 | -65 |
| Total | 911 | 1 124 | 1 725 | 2 025 | 3 501 | 3 801 |
| IFRS adjustment (attributable to the Residential segment) | 140 | -74 | 226 | -49 | 94 | -181 |
| Total IFRS | 1 051 | 1 050 | 1 951 | 1 976 | 3 595 | 3 620 |
| OPERATING PROFIT | ||||||
| Residential | 5 | 8 | 12 | 0 | 20 | 8 |
| Operating margin | 2,2 % | 2,3 % | 2,5 % | 0,0 % | 2,2 % | 0,7 % |
| Commercial | -5 | 14 | -5 | 18 | 8 | 31 |
| Operating margin | -5,3 % | 5,1 % | -2,6 % | 3,9 % | 1,4 % | 3,7 % |
| Logistics and industry* | 77 | 75 | 141 | 107 | 308 | 274 |
| Operating margin | 13,0 % | 14,9 % | 13,4 % | 12,2 % | 15,3 % | 14,9 % |
| Other** | -9 | -13 | -11 | -17 | -54 | -60 |
| Group adjustments | 0 | 2 | -4 | 2 | -4 | 1 |
| Total | 68 | 86 | 133 | 110 | 277 | 254 |
| Operating margin | 7,5 % | 7,7 % | 7,7 % | 5,4 % | 7,9 % | 6,7 % |
| Financial items | 2 | 2 | 2 | 0 | 7 | 5 |
| Change in value of real estate | 0 | – | 1 | – | 7 | 6 |
| Profit before tax, segment | 70 | 88 | 136 | 110 | 291 | 265 |
| IFRS adjustment (attributable to the Residential segment) | 23 | -9 | 32 | -8 | 6 | -34 |
| Profit before tax, IFRS | 93 | 79 | 168 | 102 | 297 | 231 |
* Distribution by geographic market is reported under section Logistics and industry on page 11. Only Logistic and industry have operations abroad.
** 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 managing risks and uncertainty factors and places strong focus on vulnerability reduction measures. The group's risks are primarily 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 2020 on pages 66–69. No significant changes took place that have changed these reported risks.
The COVID-19 pandemic is still ongoing, with an increased spreading after the end of the holiday season. At the publication of this report, the government has proposed that the pandemic legislation be extended until 31 January 2022. At the same time, vaccination is underway on a broad front and a predominant part of all adult Swedes have received at least one dose.The company continues to actively strive to conduct its operations in accordance with the Public Health Agency of Sweden's guidelines and other restrictions. The company has also paid special attention to how the continued spread of the pandemic may affect future development and/or risks that may affect financial reporting in the future. The assessment is that the impact on the company continues to be limited. However, it is still very difficult to get an overview of the final consequences.
The parent company's intra-group revenues for the quarter amounted to SEK 24 million (22) and the profit after net financial items was SEK -5 million (-17).
Wästbygg's largest shareholder is M2 Holding AB. M2 is owned and controlled by Rutger Arnhult, who is also a Board member of M2. The M2 Group has significant direct and indirect ownership interests in Corem Property Group AB, Klövern AB and Castellum AB, which are part of the group of related companies but are not group companies connected with Wästbygg. Rutger Arnhult is Chairman of the Board of Castellum and a Board member of Tobin Properties, a wholly-owned subsidiary of Klövern.
Wästbygg carries out contruction assignments in competition for Klövern, Corem Property Group and M2. Wästbygg has previously also carried out assignments for Castellum, but all these assignments were completed before Castellum could be regarded as a related company.
Revenue accrued in current projects is shown in the adjacent table. The figure for Corem also includes project development profit. As of the balance sheet date there were no financial liabilities to M2, compared to SEK 30 million including accrued interest as of 30 June 2020. Accounts receivable to related companies stood at SEK 17 million (3).
Corem acquired the majority of the shares in Klövern during the second quarter. Therefore, as of the third quarter Wästbygg will include related company transactions with Klövern in the information for Corem.
| SEK million | Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Klövern* | 9 | 2 | 15 | 3 | 20 | 8 |
| Corem | 7 | 70 | 24 | 113 | 114 | 202 |
| M2 | 64 | 16 | 64 | 52 | 81 | 70 |
| Total | 80 | 88 | 103 | 168 | 215 | 280 |
*The figures include accrued revenue for Tobin Properties, which is a wholly owned subsidiary of Klövern.
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 2020 in Note 1 Accounting Principles and Note 26 Financial Risk Management and Financial Instruments.
At the end of the period, the Group had no financial instruments.
No business acquisitions were made during the period nor after the balance sheet date until the publication of this report.
| Apr-Jun 2021 |
Jan-Mar 2021 |
Oct-Dec 2020 |
Jul-Sep 2020 |
Apr-Jun 2020 |
Jan-Mar 2020 |
Oct-Dec 2019 |
Jul-Sep 2019 |
|
|---|---|---|---|---|---|---|---|---|
| Financial key ratios | ||||||||
| Revenue | 1,051 | 900 | 924 | 720 | 1,050 | 926 | 1,046 | 1,037 |
| Operating profit | 91 | 76 | 65 | 56 | 77 | 25 | 40 | 86 |
| Operating margin, % | 8,7 | 8,4 | 7,0 | 7,8 | 7,3 | 2,7 | 3,8 | 8,3 |
| Profit/loss after tax | 99 | 73 | 82 | 58 | 69 | 25 | 40 | 80 |
| Balance sheet | 3,208 | 3,134 | 3,170 | 2,033 | 1,806 | 1,699 | 2,144 | 1,827 |
| Equity/assets ratio, % | 52 | 53 | 50 | 32 | 33 | 31 | 27 | 29 |
| Return on equity, % | 19 | 17 | 21 | 31 | 39 | 41 | 39 | **e.t. |
| Operating capital | 630 | 748 | 785 | 514 | 455 | 338 | 270 | 176 |
| Interest-bearing net cash (+) / net debt (-) |
684 | 664 | 477 | -209 | -189 | -139 | -7 | 15 |
| Cash flow from operating activities |
72 | -7 | -161 | 9 | -38 | -47 | -23 | 197 |
| Equity related key ratios | ||||||||
| Earnings per share , SEK*** | 3.05 | 2.27 | 2.66 | 2.50 | 3.01 | 1.08 | 1.77 | 3.54 |
| Equity per share, SEK | 51.21 | 51.49 | 49.17 | 28.04 | 25.52 | 22.58 | 24.81 | 23,14 |
| Number of shares at the end of the period (thousands) |
32,340 | 32,340 | 32,340 | 22,950 | 22,950 | 22,950 | 22,950 | 22,950 |
| Average number of shares (thousands) |
32,340 | 32,340 | 30,782 | 22,950 | 22,950 | 22,950 | 22,950 | 22,950 |
| Segment reporting | ||||||||
| Financial key ratios | ||||||||
| Revenue | 911 | 814 | 1,002 | 773 | 1,124 | 901 | 1,141 | 865 |
| Operating profit | 68 | 66 | 77 | 67 | 86 | 24 | 56 | 34 |
| Operating margin, % | 7,5 | 8,1 | 7,7 | 8,7 | 7,7 | 2,7 | 4,9 | 3,9 |
| Profit/loss after tax | 77 | 65 | 97 | 68 | 79 | 24 | 55 | 30 |
| Balance sheet | 3,087 | 2,857 | 2,872 | 1,727 | 1,596 | 1,499 | 1,893 | 1,767 |
| Equity/assets ratio, % | 55 | 60 | 57 | 40 | 39 | 36 | 31 | 31 |
| Return on equity, % | 18 | 18 | 23 | 35 | 32 | 31 | 33 | 41 |
| Operating capital | 506 | 535 | 575 | 361 | 328 | 240 | 177 | 139 |
| Interest-bearing net cash (+) /net debt (-) |
905 | 1 033 | 928 | 6 | -12 | -3 | 129 | 62 |
| Cash flow from operating activities |
92 | 124 | -97 | 47 | -3 | -47 | 68 | 81 |
| Equity related key ratios | ||||||||
| Earnings per share , SEK*** | 2.37 | 2.01 | 3.16 | 2.95 | 3.45 | 1.03 | 2.38 | 1.33 |
| Equity per share, SEK | 52.02 | 52.98 | 50.92 | 29.87 | 26.91 | 23.43 | 25.78 | 23.49 |
| Number of shares at the end of the period (thousands) |
32,340 | 32,340 | 32,340 | 22,950 | 22,950 | 22,950 | 22,950 | 22,950 |
| Average number of shares (thousands) |
32,340 | 32,340 | 30,782 | 22,950 | 22,950 | 22,950 | 22,950 | 22,950 |
| Operational key ratios | ||||||||
| New orders | 1,473 | 767 | 1,266 | 900 | 433 | 633 | 1,359 | 657 |
| Order backlog | 3,666 | 3,102 | 3,201 | 3,203 | 2,864 | 3,580 | 3,752 | 3,970 |
| No of employees at end of period | 328 | 315 | 311 | 315 | 308 | 308 | 305 | 310 |
For key ratio definitions, see page 24.
* The key ratios for the Group are shown above, both in accordance with IFRS and the segment accounting applied for internal control and monitoring, see Note 2 on page 21 for further information.
** Not calculated as no key ratios have been recalculated on a quarterly bases for 2018.
*** The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.
The Group: Wästbygg presents certain financial measures in the interim report that are not defined by IFRS. The key ratios on page 3 and 23 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 below are not defined in accordance with IFRS unless otherwise stated.
| Revenue growth (CAGR) | Interest-bearing net debt/net cash | |||||
|---|---|---|---|---|---|---|
| Definition: | Revenue for the period divided by reve-nue for the previous period, raised to one divided by the number of years between the two periods, minus one. |
Definition: | Interest-bearing assets (including cash and cash equiva lents and receivables from group companies) less interest-bearing liabilities. |
|||
| Purpose: | Shows the company's ability to increase revenue over time. | Purpose: | Shows the company's real indebtedness. | |||
| Reconciliation table: |
A Revenue B Comparison perid revenue C Number of years between periods (A/B)^(1/C)-1 = Revenue growth, % |
Reconciliation table: |
Receivables from group companies + Cash and cash equivalents + Other interest-bearing receivables = A Interest-bearing assets |
|||
| Operating margin | Non-current interest-bearing liablilities + Current interest-bearing liablilites = B Interest-bearing liabilities |
|||||
| Definition: | Operating profit/loss in relation to revenue. | A-B = Interest bearing net debt (+)/net cash (-) | ||||
| Purpose: | Shows the company's earning capacity. | |||||
| Reconciliation | A Operating profit/loss | Earnings per share, IFRS | ||||
| table: | B Revenue A/B = Operating margin, % |
Definition: | Profit/loss attributable to the company's shareholders in relation to the number of outstanding shares |
|||
| Purpose: | Illustrates each share's share of the period's earnings. | |||||
| Equity/assets ratio Definition: |
Equity in relation to the balance sheet total. | Reconciliation | A Profit for the period | |||
| Purpose: | Describes the capital structure of the company. | table: | B Average number of shares at the end of the period A/B = Earnings per share, SEK |
|||
| Reconciliation table: |
A Total equity B Balance sheet total A/B = Equity/assets ratio, % |
Equity per share, IFRS Definition: |
Equity attributable to the company's shareholders in | |||
| Return on equity | relation to the number of outstanding shares at the end of the period. |
|||||
| Definition: | Profit for the period divided by average equity for | Purpose: | Illustrates each share's share of the equity. | |||
| the period. | Reconciliation | A Equity at the end of the period | ||||
| Purpose: | Shows the company's ability to generate return on equity. | table: | B Number of shares at the end of the period A/B = Equity per share, SEK |
|||
| Reconciliation table: |
A Profit/loss for the period (rolling 12 months) B Equity at the beginning of the period C Equity at the end of the period |
New orders | ||||
| A/(B+C)/2 = Return on equity, % | Definition: | The value of projects received and changes to existing | ||||
| Operating capital | projects during the current period. Tenant-owner asso ciation projects of own development are included in new orders as soon as a construction agreement has been |
|||||
| Definition: | Current assets (excluding cash and cash equivalents and tax receivables) less current non-interest-bearing liabilities (excluding tax liabilities). |
Purpose: | signed for construction. Shows the company's sales during the current period. |
|||
| Purpose: | Shows the company's tied up capital. | |||||
| Reconciliation | A Current assets | Order backlog | ||||
| table: | B Cash and cash equivalents C Current non-interest-bearing liabilities A-B-C = Operating capital |
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 stock as soon as a construction agreement has been signed for construction. |
|||
Segment: As for the key ratios provided in Note 2 and in Appendix 1 on page 25–30, they are regarded as alternative key ratios. They have the same definition as key ratios below, but are based on segment figures.
| lents and receivables from group companies) less interest-bearing liabilities. |
|
|---|---|
| Purpose: | Shows the company's real indebtedness. |
| Reconciliation table: |
Receivables from group companies + Cash and cash equivalents + Other interest-bearing receivables = A Interest-bearing assets |
| Non-current interest-bearing liablilities + Current interest-bearing liablilites = B Interest-bearing liabilities |
|
| A-B = Interest bearing net debt (+)/net cash (-) | |
| Earnings per share, IFRS | |
| Definition: | Profit/loss attributable to the company's shareholders in relation to the number of outstanding shares |
| Purpose: | Illustrates each share's share of the period's earnings. |
| Reconciliation table: |
A Profit for the period B Average number of shares at the end of the period A/B = Earnings per share, SEK |
| Equity per share, IFRS | |
| Definition: | Equity attributable to the company's shareholders in relation to the number of outstanding shares at the end of the period. |
| Purpose: | Illustrates each share's share of the equity. |
| Reconciliation table: |
A Equity at the end of the period B Number of shares at the end of the period A/B = Equity per share, SEK |
| New orders | |
| Definition: | The value of projects received and changes to existing projects during the current period. Tenant-owner asso ciation projects of own development are included in new orders as soon as a construction agreement has been signed for construction. |
| Purpose: | Shows the company's sales during the current period. |
| Order backlog |
| 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 stock as soon as a construction agreement has been signed for construction. |
|
| Purpose: | Shows the company's revenues in future periods. |
As amounts have been rounded to SEK million, the tables do not always sum up.
Wästbygg Gruppen AB was listed on Nasdaq Stockholm on 13 October 2020 under the ticker code WBGR. On 30 June the share price closed at SEK 104.40, equivalent to a stock market value of SEK 3,376 million calculated based on the number of outstanding shares.
As per the balance sheet date, the share capital amounted to SEK 3,593,352, divided into 620,000 Class A shares and 31,720,165 Class B shares.
At the end of the quarter Wästbygg had 5,145 shareholders. The proportion of foreign ownership was just under 7 percent of the share capital. The ten largest shareholders controlled 85 percent of the capital and just over 87 percent of the votes. The table below shows the ten confirmed largest shareholders.
Wästbygg has a long-term goal for the dividend over time to amount to 40 percent of net profit based on segment reporting. The Annual General Meeting of 6 May adopted a dividend of SEK 3.30 per share. The dividend was paid out in a single instalment on 14 May.
On 9 June, the Wästbygg Group became one of the first companies in Sweden to be approved for 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 (Rutger Arnhult) | 337,500 | 19,111,500 | 19,449,000 | 60.1% | 59.3% |
| Fino Förvaltning AB (Jörgen Andersson) | 282,500 | 1,656,000 | 1,938,500 | 6.0% | 11.8% |
| Länsförsäkringar Fonder | - | 1,952,500 | 1,952,500 | 6.0% | 5.1% |
| Svolder | - | 1,817,916 | 1,817,916 | 5.6% | 4.8% |
| AFA Försäkring | - | 755,000 | 755,000 | 2.3% | 2.0% |
| Öhman Fonder | - | 698,000 | 698,000 | 2.2% | 1.8% |
| Carnegie Fonder | - | 348,000 | 348,000 | 1.1% | 0.9% |
| Gårdarike Invest (Urban Terling) | - | 300,000 | 300,000 | 0.9% | 0.8% |
| SEB Fonder | - | 200,421 | 200,421 | 0.6% | 0.5% |
| Skandrenting Förvaltning AB (Erik Selin) | - | 175,000 | 175,000 | 0.5% | 0.5% |
| Other share holders | - | 4,705,828 | 4,705,828 | 14.7% | 12.5% |
| Total | 620,000 | 31,720,165 | 32,340,165 | 100.00% | 100.00% |
Source: Monitor by Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).
The Board of directors and the President declares that the interim report provides a fair overview of the parent company's and the Group's operations, position and results 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.
Gothenburg 26 August 2021
Wästbygg Gruppen AB (publ)
CECILIA MARLOW JÖRGEN ANDERSSON LENNART EKELUND Chairman Board member Board member
CHRISTINA KÄLLENFORS JOACIM SJÖBERG Board member Board member
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 26 August 2021 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.
The Wästbygg Group's segment report contains alternative key ratios to describe how the business develops over time and provide an opportunity for a clearer comparison between different periods. These also follows the Group's internal reporting as this is how the board and group management controls and monitors operations. The alternative key figures are a complement to reporting in accordance
with IFRS. The difference between the two ways of reporting is described in Note 2 and concerns how tenant-owner association projects of own development are reported. Below and on the following five pages are the income statement, balance sheet, changes in equity and cash flow analysis according to segment reporting.
| CONSOLIDATED INCOME STATEMENT– SEGMENT REPORT, SEK million |
Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Revenue | 911 | 1,124 | 1,725 | 2,025 | 3,501 | 3,801 |
| Costs in production | -769 | -978 | -1,454 | -1,802 | -2,933 | -3,281 |
| Gross profit/loss | 142 | 146 | 271 | 223 | 568 | 520 |
| Sales and administration costs | -75 | -63 | -140 | -117 | -292 | -269 |
| Other operating revenue | 1 | 3 | 2 | 4 | 2 | 4 |
| Other operating costs | - | 0 | - | 0 | -1 | -1 |
| Other profit/loss | 68 | 86 | 133 | 110 | 277 | 254 |
| Profit/loss from financial items | ||||||
| Profit shares from joint venture and associated companies | 0 | 0 | 0 | 0 | 0 | 0 |
| Financial revenue | 4 | 4 | 5 | 5 | 12 | 12 |
| Financial costs | -2 | -2 | -3 | -5 | -5 | -7 |
| Profit after financial items | 70 | 88 | 135 | 110 | 284 | 259 |
| Change in value of real estate | 0 | - | 1 | - | 7 | 6 |
| Profit before tax | 70 | 88 | 136 | 110 | 291 | 265 |
| Taxes | 7 | -9 | 5 | -7 | 15 | 3 |
| Profit for the period | 77 | 79 | 141 | 103 | 306 | 268 |
| Profit attributable to: | ||||||
| - the parent company's shareholders | 77 | 79 | 141 | 103 | 306 | 268 |
| - holdings without controlling influence | 0 | 0 | 0 | 0 | 0 | 0 |
| Earnings per share, SEK* | 2.37 | 3.45 | 4.37 | 4.48 | 10.35 | 10.75 |
| Number of shares at the end of the period (thousands) | 32,340 | 22,950 | 32,340 | 22,950 | 32,340 | 32,340 |
| Average number of shares (thousands) | 32,340 | 22,950 | 32,340 | 22,950 | 29 581 | 24,913 |
* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.
| CONSOLIDATED REPORT ON TOTAL PROFIT – SEGMENT REPORT, SEK million |
Apr-Jun 2021 |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|---|---|
| Profit for the period | 77 | 79 | 141 | 103 | 306 | 268 |
| Other comprehensive income that can be transferred to the income statement |
||||||
| Currency difference when translating foreign operations | -1 | 0 | 1 | -2 | 0 | -2 |
| Total profit for the period | 76 | 79 | 142 | 101 | 306 | 266 |
| Total profit attributable to: - the parent company's shareholders - holdings without controlling influence |
76 0 |
79 0 |
142 0 |
101 0 |
306 0 |
266 0 |
Based on the segment reporting, the Wästbygg Group reported a strong quarter, although slightly weaker than the corresponding quarter in the previous year due to a lower volume of projects in progress. Revenues amounted to SEK 911 million (1,124), and operating profit was SEK 68 million (86).
Profit after tax amounted to SEK 77 million (79), which corresponds to earnings per share of SEK 2.37 (3.45). The operating margin was 7.5 percent (7.7).
Order intake is traditionally strong in the second quarter, and this year was no exception. The order intake for the second quarter was SEK 1,473 (433) and was distributed over all three business areas. However, a comparison with 2020 is not representative because at that time the market was affected by the COVID-19 pandemic. In Residential, in line with its plan to increase the share of project development, the company decided to start production of two new development projects. In addition to the new contracts signed, the order intake was positively affected by numerous supplementary orders related to projects in progress.
The order backlog was SEK 3,666 million (2,864) as of 30 June. This implies that the order backlog is gradually returning to the pre-pandemic level.
During the first six months, revenues amounted to SEK 1,725 million (2,025). Volumes have been affected by the termination of several large projects in the first two quarters of the year. However, a strong order intake was reported, which will generate rising volumes going forward.
Operating profit was stronger than for 2020, amounting to SEK 133 million (110) due to improved project profitability and a greater number of self-developed projects.
Profit after tax amounted to SEK 141 million (103), corresponding to earnings per share of SEK 4.37 (4.48).
The total order intake was SEK 2,240 million (1,066).
As the Wästbygg Group works with large projects of long duration, comparisons between individual quarters are seldom wholly representative. Revenues for the rolling 12-month period amounted to SEK 3,501 million, compared to SEK 3,801 million for the full 2020 financial year. Operating profit amounted to SEK 277 million, compared to SEK 254 million. With an order intake of SEK 4,406 million for the rolling 12-month period compared to SEK 3,232 million for the full 2020 financial year, there are good prospects for continued positive development for the remainder of the year.
At the end of the period the group had 328 employees, compared with 311 at the start of the year. Throughout the COVID-19 pandemic, the group has worked with full staffing, and no redundancies or other reductions have been required.
Alongside the strong order intake during the first six months, the number of employees has also grown and there is a need to further increase the organisation's staff during the autumn.
| CONSOLIDATED BALANCE SHEET – SEGMENT REPORT, SEK million |
30 Jun 2021 |
30 Jun 2020 |
31 Dec 2020 |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible fixed assets | |||
| Goodwill | 229 | 229 | 229 |
| Other intangible fixed assets | 9 | 7 | 8 |
| Total | 238 | 236 | 237 |
| Tangible fixed assets | |||
| Investment properties | 75 | 24 | 59 |
| User rights assets | 28 | 36 | 30 |
| Inventory, tools and installations | 4 | 7 | 6 |
| Total | 107 | 67 | 95 |
| Financial fixed assets | |||
| Shares in joint ventures and associated companies | 11 | 11 | 11 |
| Deferred tax receivables | 46 | 33 | 38 |
| Non-current financial assets | 0 | 0 | 0 |
| Total | 57 | 44 | 49 |
| Total fixed assets | 402 | 347 | 381 |
| Current assets | |||
| Development properties, etc. | 265 | 89 | 75 |
| Accounts receivable | 427 | 372 | 506 |
| Accrued but not invoiced | 298 | 330 | 282 |
| Tax receivables | 25 | 12 | 26 |
| Receivables from group companies | 12 | 12 | 12 |
| Other receivables | 734 | 345 | 797 |
| Prepaid costs and accrued income | 14 | 16 | 17 |
| Cash and cash equivalents | 910 | 73 | 776 |
| Total current assets | 2,685 | 1,249 | 2,491 |
| TOTAL ASSETS | 3,087 | 1,596 | 2,872 |
| CONSOLIDATED BALANCE SHEET – SEGMENT REPORT, SEK million |
30 Jun 2021 |
30 Jun 2020 |
31 Dec 2020 |
|---|---|---|---|
| TOTAL EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 4 | 3 | 4 |
| Other contributed capital | 946 | 83 | 946 |
| Retained earnings | 590 | 431 | 431 |
| This year's profit or loss | 142 | 101 | 266 |
| Total equity attributable to the company's shareholders | 1,683 | 618 | 1,647 |
| Holdings without controlling influence | 4 | 3 | 3 |
| Total equity | 1,686 | 621 | 1,650 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | |||
| Liabilities to group companies | - | 30 | - |
| Liabilities to credit institutions | 49 | 0 | 0 |
| Debts user rights | 15 | 22 | 16 |
| Total | 64 | 52 | 16 |
| Non-current non-interest-bearing liabilities | |||
| Deferred tax liabilities | 4 | 2 | 3 |
| Other provisions | 74 | 40 | 71 |
| Total | 78 | 42 | 74 |
| Total non-current liabilities | 142 | 94 | 90 |
| Current liabilities | |||
| Current interest-bearing liabilities | |||
| Liabilities to credit institutions | 0 | 20 | 0 |
| Debts user rights | 15 | 17 | 16 |
| Overdraft facility | - | 8 | - |
| Total | 15 | 45 | 16 |
| Current non-interest-bearing liabilities | |||
| Accounts payable | 280 | 370 | 244 |
| Advance from customer | 531 | 279 | 379 |
| Tax liabilities | 0 | 0 | 2 |
| Other liabilities | 311 | 83 | 362 |
| Accrued expenses and prepaid income | 122 | 104 | 129 |
| Total | 1,244 | 836 | 1 116 |
| Total current liabilities | 1,259 | 881 | 1 132 |
| TOTAL EQUITY AND LIABILITIES | 3,087 | 1,596 | 2,872 |
| Interest-bearing assets | 984 | 85 | 961 |
|---|---|---|---|
| Interest-bearing liabilities | 79 | 97 | 33 |
| Interest-bearing net cash/net debt | 905 | -12 | 928 |
| CHANGES IN THE GROUP'S EQUITY IN SUMMARY – SEGMENT REPORT, SEK million |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|---|---|---|---|---|
| Equity attributable to the parent company's owners | ||||
| Amount at the beginning of the period | 1,647 | 592 | 618 | 592 |
| New issue of shares | – | – | 901 | 901 |
| Transaction costs new issue of shares | – | – | -37 | -37 |
| Dividend | -107 | -75 | -107 | -75 |
| Comprehensive income for the period | 142 | 101 | 306 | 266 |
| Amount at the end of the period | 1,682 | 618 | 1,682 | 1,647 |
| Holdings without controlling influence | ||||
| Amount at the beginning of the period | 3 | 3 | 3 | 3 |
| Total profit/loss for the period | 0 | 0 | 0 | 0 |
| Amount at the end of the period | 4 | 3 | 4 | 3 |
| TOTAL EQUITY | 1,686 | 621 | 1,686 | 1,650 |
The Wästbygg Group has a strong cash position resulting from the share issues and the listing on Nasdaq Stockholm in 2020, along with a positive earnings trend for several years. Furthermore, we handed over five self-developed projects during the first six months: two in Residential, one in Commercial and two in Logistics and Industry. Numerous investments were made during the same period, but the net effect on cash flow during the first six months is still positive. However, the company is now entering a different phase, with the startup of several new development projects.
Equity per share amounted to SEK 52.02 (26.91) at the end of the period.
The Group reported interest-bearing net cash of SEK 905 million (-12) at the end of the period. The net cash amounted to SEK 928 million (129) on 1 January.
The Other receivables item includes the purchase consideration for a non-consolidated project property in Borås acquired during the first quarter, as well as claims related to unconsolidated project properties. The Development properties item includes a land acquisition of logistics and industrial land in Enköping for SEK 165 million, which was carried out during the second quarter.
The equity ratio at the end of the period was 55 percent (39). The Group's strong equity ratio is a result of the new share issue in 2020 as well as a positive earnings trend during the first six months.
The Annual General Meeting of 6 May adopted a dividend of SEK 3.30 per share, SEK 107 million in total, which was paid out on 14 May.
| GROUP CASH FLOW STATEMENT – SEGMENT REPORT, SEK million |
Apr-Jun 2020 |
Jan-Jun 2021 |
Jan-Jun 2020 |
Jul-Jun 2020-21 |
Jan-Dec 2020 |
|
|---|---|---|---|---|---|---|
| Day-to-day operations | ||||||
| Profit/loss before financial items | 68 | 86 | 133 | 110 | 277 | 254 |
| Adjustment for items not included in cash flow | -4 | 6 | 13 | 13 | 56 | 56 |
| Received interest | 4 | 4 | 5 | 5 | 11 | 12 |
| Paid interest | -2 | -2 | -3 | -5 | -5 | -7 |
| Paid tax | -5 | -4 | -1 | -10 | -8 | -16 |
| Cash flow from operating activities before changes in working capital |
61 | 90 | 147 | 113 | 331 | 299 |
| Cash flow from changes in working capital | ||||||
| Increase (-)/decrease (+) of accounts receivable | -130 | -108 | 80 | -4 | -60 | -144 |
| Increase (-)/decrease (+) of other operating receivables | -59 | -3 | -136 | 97 | -518 | -286 |
| Increase (+)/decrease (-) of accounts payable | 6 | 88 | 35 | -122 | -88 | -245 |
| Increase (+)/decrease (-) of operating liabilities | 214 | -70 | 90 | -130 | 501 | 281 |
| Cash flow from the day-to-day operations | -3 | 216 | -46 | 166 | -95 | |
| Investment activities | ||||||
| Investments in businesses, including additional purchase sums | 0 | – | 0 | – | 0 | 0 |
| Acquisitions of intangible fixed assets | 0 | -1 | -1 | -3 | -3 | |
| Investments in investment properties | -5 | -7 | -15 | -19 | -49 | -53 |
| Acquisitions of other tangible fixed assets | -5 | 0 | -7 | 0 | -11 | -4 |
| Cash flow from investing activities | -7 | -23 | -20 | -63 | -60 | |
| Financing activities | ||||||
| New issue of shares | – | – | – | – | 901 | 901 |
| Transaction costs new issue of shares | – | – | – | – | -37 | -37 |
| Paid dividend | -107 | – | -107 | -75 | -107 | -75 |
| Amortisation of loan liabilities | 1 | -9 | -2 | -78 | -59 | -135 |
| Raised loan liabilities | 49 | – | 49 | – | 49 | – |
| Change of overdraft facility | – | 8 | – | 8 | -8 | – |
| Cash flow from financing activities | -57 | -1 | -60 | -145 | 739 | 654 |
| CASH FLOW FOR THE PERIOD | -11 | 133 | -211 | 842 | 499 | |
| Cash and cash equivalents at the start of the period | 889 | 83 | 776 | 285 | 73 | 285 |
| Exchange rate difference in cash and cash equivalents | -4 | 1 | 1 | -1 | -5 | -8 |
| Cash and cash equivalents at the end of the period | 910 | 73 | 910 | 73 | 910 | 776 |
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. A negative cash flow from current operations during certain periods is completely in line with the company's strategy to increase the proportion of development projects.
Total cash flow during the second quarter amounted to SEK 25 million (-11), divided into current operations SEK 92 million (-3), investment operations SEK -10 million (-7) and financing operations SEK -57 million (-1).
Cash flow from current operations during the second quarter was boosted by the handing over of three self-developed projects and charged with a land acquisition in Enköping.
The cash flow from financing operations includes an adopted dividend of SEK 107 million.
Total cash flow for the six-month period amounted to SEK 133 million (-211), divided into current operations SEK 216 million (-46), investment operations SEK -23 million (-20) and financing operations SEK -60 million (-145).
Five self-developed projects were handed over during the first six-month period, which had a positive effect on cash flow from current operations. Meanwhile, we have entered a period with several new development projects starting up, which has negatively affected cash flow and will continue to do so going forward.
Cash flow from investment operations was affected by the construction of the Kv Häggen sheltered housing project in Halmstad, which is being built for own ownership in the group company Inwita Fastigheter. Construction of the housing was completed in June.
Self-funded investments were carried out. In addition to the land acquisition carried out in the second quarter, a project property was acquired in Borås earlier in the year.
| Interim report January – September9 November 2021 | |
|---|---|
| Year-end report 2021 11 February 2022 |
For further information, please contact:
Jörgen Andersson, CEO Phone +46 703 23 32 02, email [email protected]
Jonas Jönehall, CFO and Vice President Phone +46 739 20 19 01, email [email protected]
Marie Lindebäck, Head of IR and Deputy Head of Sustainablity Phone +46 734 67 20 12, email [email protected]
Wästbygg Gruppen AB (publ) • Sofierogatan 3B • 412 51 Göteborg • Sweden Company registration number 556878-5538 Phone +46 31 733 23 00 www.wastbygg.se • [email protected] Registered Office: Gothenburg
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