Earnings Release • May 6, 2021
Earnings Release
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| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Revenue | 1,950 | 1,814 | 7,007 | 6,871 |
| Operating profit/loss | 31 | -149 | -234 | -414 |
| Operating margin, % | 1.6 | -8.2 | -3.3 | -6.0 |
| Earnings for the period | 46 | -106 | -206 | -358 |
| Earnings per share, SEK, before dilution | 1.65 | -4.73 | -8.58 | -15.82 |
| Earnings per share , SEK after dilution | 1.65 | -4.73 | -8.58 | -15.82 |
| Equity per share , SEK after dilution | 77.35 | 92.25 | 77.35 | 78.68 |
| Equity/assets ratio, % | 36.2 | 37.0 | 36.2 | 32.5 |
| Net debt | -135 | 1,198 | -135 | 20 |
| Net debt/EBITDA | 0.9 | -6.1 | 0.9 | -0.1 |
| Net debt/equity ratio, % | -6.2 | 57.8 | -6.2 | 1.0 |
| Order bookings | 1,179 | 2,975 | 8,843 | 10,639 |
| Order backlog | 13,126 | 10,576 | 13,126 | 13,619 |
Serneke is continuing to develop in line with our set plan, towards better profitability and increased stability. Having now turned to profitability gives us calm to work and strengthens us to continue to drive the important change work we are in the midst of. We must also remember that the first quarter of the year is normally the weakest and especially in a year that, besides being affected by unfavorable weather, is also impacted by the pandemic.
The profit for the period was largely generated by sales of development rights structured in a basket that is transferred over time. At the same time, the construction operations continue to strengthen their delivery while keeping a conservative view of revenue recognition. We have a journey ahead of us until we achieve the goal, but the trend remains positive.
Order bookings are mainly characterized by our strategy to prioritize profitability before growth. At the same time, competition is increasing and uncertainty regarding pandemic effects is making the market take on more of a wait-and-see approach. More companies than Serneke are now prioritizing profitability and a tendency to refrain from pure price competition is beginning to be seen, something we believe may impact the industry and work to our advantage. Our strong order book, an established market position and a continued large underlying need for housing provide us with the security to maintain our strategy and remain more selective in the tenders we submit.
It's strategically important to maintain a high level of activity in our projects developed in-house and it's therefore pleasing that our portfolio of development rights is in demand in the market. With Karlatornet in full production, it was primarily development rights in Karlastaden, about which we conducted extensive discussions with multiple actors in the first quarter of the year. But clear demand is also noticeable for the other parts of the portfolio as multiple projects have reached a level of maturity that makes them commercially attractive.
In the previous year, the Company showed drive and a willingness to change when we staked out the direction for the Company's continued development with a new business plan. It's pleasing to see that the process of change is now under way in earnest in the program we call "A Stronger Serneke".
The program's ambition is to drive change that's relevant and makes daily life easier for our employees. Through this, we also strengthen our customer offering and create value for our shareholders. Creating the industry's best management system and becoming more direct in our follow-up and governance will take place hand in hand with our further development and strengthening of the culture within the company. There, values, sustainability and diversity are natural parts of our vision to become the next-generation construction and project development company.
I am convinced that in 2020 we rode out the worst of storms, set relevant long-term goals in our new business plan and staked out a clear course towards profitability, stability and a stronger corporate culture in 2021. The first interim report for the year confirms that we are on the right path.
Michael Berglin, Acting President and CEO
| Order | Order | |||||||
|---|---|---|---|---|---|---|---|---|
| bookings | Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | backlog | Mar 31 | Mar 31 | Dec 31 |
| SEK M | 2021 | 2020 | 2020/2021 | 2020 | SEK M | 2021 | 2020 | 2020 |
| Contracting | 1,179 | 2,975 | 8,843 | 10,639 | Contracting | 13,126 | 10,576 | 13,619 |
The external order bookings for the quarter amounted to SEK 1,179 million (2,975). The lower order bookings in the quarter are largely attributable to the fact that a rental apartment portfolio was sold in December 2019 consisting of five land areas with associated residential projects, three of which were entered as orders in the same quarter last year for more than SEK 900 million.
Assignments received during the quarter were concentrated to public service properties and residential production. The single largest order amounted to SEK 477 million and pertained to a signed construction contract with Akademiska Hus to construct a building that will become part of the School of Business, Economics and Law at the University of Gothenburg and the entrance from the Västlänken station Haga, which
will be integrated into the university building. Parts of the order bookings are under production, but the majority will get started in 2023.
The market trend and the outlook are still relatively unchanged compared with the previous quarter. There is still an underlying demand even if there is some shift from the private residential unit clients to the municipal clients in the form of more public premises and public service properties.
The external order backlog at the end of the first quarter amounted to SEK 13,126 million (10,576). This means an increase of 24 percent compared with the corresponding quarter in the preceding year.
Order backlog (SEK million)
| Assignment | Location | Order value (SEK million) |
Anticipated start of construction |
|---|---|---|---|
| Public buildings | Gothenburg | 477 | First quarter 2021 |
| Housing | Landskrona | 133 | Third quarter 2021 |
| Housing | Växjö | 109 | Third quarter 2021 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan-Dec | |
|---|---|---|---|---|
| SEK million | 2021 | 2020 | 2020/2021 | 2020 |
| Revenue | 1 950 | 1 814 | 7 007 | 6 871 |
| Operating profit/loss | 31 | -149 | -234 | -414 |
| Net financial items | 7 | -5 | -76 | -88 |
| Profit/loss after financial items | 38 | -154 | -310 | -502 |
| Tax | 8 | 48 | 104 | 144 |
| Profit/loss for the period | 46 | -106 | -206 | -358 |
Consolidated revenue amounted to SEK 1,950 million (1,814), an increase of 7 percent. Business Area Sweden's revenue decreased by 7 percent to SEK 1,770 million (1,912), which is largely attributable to three tenant-owner apartment projects being turned over to the customer in the first quarter of last year and then contributed sales of SEK 390 million. Business Area Invest's revenue amounted to SEK 337 million (46) and most of the increase consists of sales of development rights to Balder comprising SEK 169 million and reinvoicing of contracts carried out by Business Area Sweden to Karlatornet AB (the Joint Venture).
Operating profit was SEK 31 million (loss: 149) and were mainly positively impacted by Business Area Invest through sales of development rights to Balder which generated an operating profit of SEK 85 million. In addition to this, operating profit was negatively impacted by seasonal variations related to weather conditions and
indirect effects linked to the coronavirus pandemic (delays). The margin in our on-going projects for the quarter compared with the previous year indicates a financial development in the right direction.
Net financial items amounted to an revenue of SEK 7 million (expense: 5) and the increase is mainly attributable to interest income on the shareholder loan that arose in connection with the sale of Karlatornet in the fourth quarter of 2020 of approximately SEK 1.4 billion. During the quarter, loan expenses were capitalized on project properties in an amount of SEK 12 million (13).
The Group reported an estimated tax income of SEK 8 million (48). The positive tax effect for the quarter is attributable to non-taxable income and a change in deferred tax related to tax loss carryforwards.
Profit for the period amounted to SEK 46 million (loss: 106) and earnings per share after dilution for the quarter were SEK 1.65 (-4.73).
| Mar 31 | Mar 31 | Dec 31 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2020 |
| Total assets | 5,965 | 5,605 | 5,992 |
| Total shareholders' equity | 2,161 | 2,074 | 1,946 |
| Net debt | -135 | 1,198 | 20 |
| Net debt/EBITDA | 0.9 | -6.1 | -0.1 |
| Liquid assets | 288 | 112 | 234 |
| Equity/assets ratio, % | 36.2 | 37.0 | 32.5 |
The consolidated balance sheet total amounted to SEK 5,965 million (5,992) as at March 31, and the equity/assets ratio was 36.2 percent (32.5). Cash and cash equivalents at the end of the period amounted to SEK 288 million (234) and in addition to that, the Group has a credit facility of SEK 500 million of which SEK 85 million is utilized by guarantees issued. At the end of the period, total consolidated cash and cash equivalents amounted to SEK 704 million (646). The Group also has unutilized granted building credits of SEK 74 million.
On March 31, equity amounted to SEK 2,161 million (1,946). The change is comprised of the profit for the year of SEK 46 million, a new share issue of SEK 167 million including issue costs and share-based remuneration of SEK 2 million.
On March 31, net borrowing amounted to a negative SEK 135 million (positive: 20). The main change pertains to repayment of bank loans of SEK 130 million.
Interest-bearing receivables increased markedly in December 2020 and arose in connection with Serneke and Balder entering a share transfer agreement that means that Balder acquired 50 percent of the shares in Karlatornet AB (the Joint Venture). The Joint Venture acquired all of the Karlatornet assets from Serneke at their book value, where project and development properties amounted to SEK 1,574 million, against a promissory note in the form of an interest-bearing shareholder loan of SEK 1,386 million.
| Net debt | Mar 31 | Mar 31 | Dec 31 |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2020 |
| Bank loans | 70 | 165 | 200 |
| Unused bank overdraft facilities | – | 190 | – |
| Construction credits, tenant-owner apartment projects |
78 | 42 | 42 |
| Bonds | 716 | 696 | 719 |
| Finance lease liabilities | 78 | 88 | 82 |
| Additional lease liabilities IFRS 16 | 283 | 167 | 286 |
| Loan from the Swedish Tax Agency | 275 | – | 275 |
| Other interest-bearing liabilities | 4 | 12 | 4 |
| Interest-bearing receivables | -1,351 | -50 | -1,354 |
| Liquid assets | -288 | -112 | -234 |
| Net debt | -135 | 1,198 | 20 |
The credit facilities with Nordea of SEK 500 million carry a covenant, which means that the Group will have an equity/assets ratio of 30 percent and an EBITDA covenant. The covenant is fulfilled at the reporting date on March 31, 2021.
The equity/assets ratio shall exceed 30 percent. Return on equity shall exceed 15 percent
Equity/assets ratio
months.
-10,0% -5,0% 0,0% 5,0% 10,0%
The operating margin shall exceed 6 percent. Positive operational cash flow every quarter rolling 6
| Jan-Mar | Jan-Mar | Jan–Dec | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2020 |
| Cash flow from current operations | -2 | -233 | -352 |
| Cash flow from investment activities | 0 | -16 | -20 |
| Cash flow from financing activities | 56 | 199 | 444 |
| Cash flow for the period | 54 | -50 | 72 |
| Cash and cash equivalents at beginning of period | 234 | 162 | 162 |
| Cash and cash equivalents at end of period | 288 | 112 | 234 |
Cash flow from operating activities amounted to an outflow of SEK 2 million (233), of which cash flow from changes in working capital amounted to an outflow of SEK 5 million (156).
Cash flow from investing activities amounted to SEK 0 million (outflow: 16).
The cash flow from financing activities amounted to SEK 56 million (199) and is mainly attributable to repayment of loans of SEK 130 million and a new share issue of a positive SEK 167 million.
Cash flow for the period amounted to an inflow of SEK 54 million (outflow: 50).
In March 2021, Karlatornet had reached 12 floors above ground and the work with the so-called outrigger floors had begun. They are intended to provide the tower extra stability and therefore include a complex construction with strong concrete walls and a lot of rebar.
At the beginning of 2020, a reorganization was conducted, which entailed a new segment breakdown. It was applied as of 30 September 2020 and has been adjusted retroactively in accordance with IAS 8. This means that attributable items from earlier periods have been reclassified for correct comparability. The reclassifications have not entailed any effects on the Group's previously reported key performance indicators.
The Serneke Group is divided into three business areas: Sweden, Invest and International, which are reported as individual operating segments.
In Business Area Sweden, contracting is conducted in construction, civil engineering and infrastructure-related operations and project development operations through the development of project and development properties. The business area performs contracts for both external customers and for Business Area Invest.
Business Area Invest conducts development projects with a higher degree of complexity, higher transaction risk and a greater need for tied-up capital. The business area creates internal assignments for Serneke Sweden's contract operations.
International is the business area that gathers the Group's international efforts. This business area is starting up and today consists of a participating interest in a construction company in Australia and an on-going project export effort. In this report, due to its current scope, the segment will not be described more than in the tables below on this page and in the multi-year summary on page 15.
Other operations that mainly consist of Group functions are reported as Group-wide.
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Sweden | 1,770 | 1,912 | 6,848 | 6,990 |
| Invest | 337 | 46 | 616 | 325 |
| International | 0 | 0 | 0 | 0 |
| Group-wide | 33 | 37 | 84 | 88 |
| Eliminations | -190 | -181 | -541 | -532 |
| Total | 1,950 | 1,814 | 7,007 | 6,871 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Sweden | -10 | -70 | -271 | -331 |
| Invest | 71 | -73 | 53 | -91 |
| International | -4 | -4 | -13 | -13 |
| Group-wide | -17 | 1 | -18 | 0 |
| Eliminations | -9 | -3 | 15 | 21 |
| Total | 31 | -149 | -234 | -414 |
* The comparative figures have been restated in accordance with new segment reporting
To a certain extent, Serneke's operations are subject to seasonal effects. The contracting operations normally experience lower activity in the first quarter of the year due to fewer production days and, to a greater extent than normal, the weather during the winter months.
Earnings are also affected by where public holidays fall, as this affects the number of production days.
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Revenue | 1,770 | 1,912 | 6,848 | 6,990 |
| Operating profit/loss | -10 | -70 | -271 | -331 |
| Operating margin, % | -0.6 | -3.7 | -4.0 | -4.7 |
Revenue amounted to SEK 1,770 million (1,912), a decrease by 7 percent which is largely attributable to three tenant-owner apartment projects being turned over to the customer in the first quarter of last year and contributed sales of SEK 390 million. Excluding the tenant-owner apartment projects in the first quarter of last year, Sweden's revenue increased by 16 percent and there has been a good pace of production in existing projects.
Operating loss amounted to SEK 10 million (70) and the operating margin was a negative 0.6 percent (3.7). Operating profit for the quarter was impacted by seasonal variations related to weather conditions and indirect effects linked to the coronavirus pandemic (delays). Operating margin for the quarter compared with the previous year indicates a financial development in the right direction.
The total book value of the project development portfolio in Sweden amounted to SEK 296 million as at March 31, 2021.
| Development rights | Mar 31 | Mar 31 | Dec 31 |
|---|---|---|---|
| Number (GFA) | 2021 | 2020 | 2020 |
| Development rights on own | |||
| balance sheet | 18,066 | 22,917 | 18,066 |
| Development rights via joint | |||
| ventures | 2,300 | 2,300 | 2,300 |
| Agreed development rights | |||
| not yet taken into | |||
| possession | 228,802 | 239,520 | 259,527 |
| Total | 249,168 | 264,737 | 279,893 |
Order backlog per client
Order backlog per product mix
| Tenant-owner housing productions developed in-house | Mar 31 2021 |
Mar 31 2020 |
Dec 31 2020 |
|---|---|---|---|
| Number residential units with production start in the period | 0 | 24 | 24 |
| Number residential units sold in the period | 12 | 25 | 23 |
| Total number of residential units in production at period-end | 107 | 140 | 107 |
| Number of residential units bought back in the own balance sheet at period-end | 4 | 2 | 4 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Revenue | 337 | 46 | 616 | 325 |
| Share in profit of associates and joint ventures | 5 | 7 | 12 | 14 |
| Operating profit/loss | 71 | -73 | 53 | -91 |
| Operating margin, % | 21.1 | -158.7 | 8.6 | -28.0 |
Revenue amounted to SEK 337 million (46) and most of the increase consists of sales of development rights to Balder comprising SEK 169 million and re-invoicing of contracts carried out by Business Area Sweden to Karlatornet AB (the Joint Venture).
The share in the profit of associates and joint ventures amounted to SEK 5 million (7).
Operating profit amounted to SEK 71 million (loss: 73). The operating profit was mainly attributable to sales of development rights to Balder, which generated an operating profit of SEK 85 million. In addition to this, hotel operations were negatively impacted by decreased activity due to the coronavirus pandemic.
The total book value of the project development portfolio in Invest amounted to SEK 1,449 million as at March 31, 2021.
| Development rights | Mar 31 | Mar 31 | Dec 31 |
|---|---|---|---|
| Number (GFA) | 2021 | 2020 | 2020 |
| Development rights on own balance | |||
| sheet | 212,721 | 284,245 | 227,621 |
| Development rights via joint | |||
| ventures | 50,000 | 53,405 | 50,000 |
| Agreed development rights not yet | |||
| taken into possession | 301,671 | 262,627 | 359,129 |
| Total | 564,392 | 600,277 | 636,750 |
| Tenant-owner housing productions developed in-house | Mar 31 2021 |
Mar 31 2020 |
Dec 31 2020 |
|---|---|---|---|
| Number residential units with production start in the period | 0 | 0 | 0 |
| Number residential units sold in the period | 0 | 0 | 0 |
| Total number of residential units in production at period-end | 297 | 594 | 297 |
| Number of residential units bought back in the own balance sheet at period-end | 0 | 0 | 0 |
The operations of Serneke Group AB (publ) consist mainly of Group Management and Group-wide services.
Revenue for January-March amounted to SEK 33 million (37) and consisted primarily of intra-group services. Operating loss for the same period amounted to SEK 11 million (12).
The Parent Company is indirectly affected by the risks described in the section Significant risks and uncertainty factors.
The nature and extent of transactions by related parties can be found in Note 35 of the 2020 Annual Report. Related-party transactions during the year occurred with Lommen Sjöbefälet AB, Ola Serneke Holding AB, Kviberg Skidanläggning AB, Limestone Management AB, JV Sersund AB, JV Karlatornet AB and the associated company Änglagården. Transactions with related parties have been made on market terms.
Transactions with Lommen Sjövefälet AB are considered to constitute related-party transactions since the principal owner, Ludwig Mattsson, is a member of the Board of Serneke Group AB. The transactions consisted mainly of construction revenue and rental of Serneke's headquarters, and revenue amounted to SEK 0.2 million and purchases to SEK 3.1 million. Transactions with Ola Serneke Holding AB are considered to be related party transactions, as Ola Serneke is the principal owner of Serneke Group AB. Purchases amounted to SEK 0.4 million and sales amounted to SEK 3.1 million. The transactions mainly constitute income/expenses for the settlement of the assets and liabilities that took place in 2020 between Serneke and Kviberg Skidanläggning AB, which Ola Serneke Holding AB owns and are thereby considered to constitute related party transactions. Transactions with Limestone Management AB, Per Åkerman's consulting firm, are considered to be relatedparty transactions as Per Åkerman is a member of the Board of the Company. The transactions relate to consultant remuneration for tasks outside the Board assignment and amount to SEK 0.6 million. Transactions with Sersund AB (JV) are considered to constitute related-party transactions as Serneke owns 50 percent of Sersund and the transactions are mainly comprised of revenue from contract services of SEK 32.3 million. Transactions with Karlatornet (JV) are considered to
constitute related-party transactions as Serneke owns 50% of Karlatornet AB as of December 17, 2020. The transactions are mainly comprised of contract revenue of SEK 123.1 million. Transactions with the associated company Änglagården are considered to constitute related-party transactions as Serneke owns 40 percent of Änglagården. The transactions are mainly comprised of contracted personnel, premises rent and rent for the arena. Revenue amounted to SEK 1.2 million and purchases amounted to SEK 5.7 million.
Serneke's operations entail several types of risks, both operational and financial. Operational risks are related to the daily operations and can apply to tenders or project development, assessment of profits, risks linked to production or the price trend. Operational risks are managed by the internal business management that has been developed within the Group. Identifying and managing Serneke's risks is crucial to the Group's profitability. Each segment manages its risks based on the business management and developed procedures and processes. Serneke's financial risks such as interest rate, liquidity, financing and credit risks are managed centrally in order to minimize and control risk exposure. The cash situation is continuously assessed by the Board of Directors and Group Management. Work on sales of the Group's project portfolio is a part of Serneke's operations and is continuing among other things with the aim of balancing the tied-up capital and freeing liquidity. The Board's assessment is that Serneke is acting based on good business order and ensuring that adequate liquidity is obtained to ensure continued operations.
For further information on risks, as well as critical estimates and assessments, see the Board of Directors' Report and Notes 3 and 4 in the 2020 Annual Report. The descriptions in the Annual Report remain relevant. The Annual Report is published at www.serneke.group.
On December 17, Serneke decided on a fully guaranteed rights issue. The subscription period in the rights issue expired on January 13, 2021 and was fully subscribed and no guarantee commitments needed to be utilized. Through the rights issue, Serneke obtained around SEK 170 million before issue expenses. As a result of the rights issue, Serneke's share capital increased by SEK 320,478 to SEK 2,875,323. The total number of shares increased by 3,204,780 shares to 28,753,232 shares.
Serneke and Balder entered an agreement on December 17, 2020 that Serneke sells development rights to Balder corresponding to so-called forward-funding for an underlying property value totaling around SEK 3.2 billion. The arrangement guarantees Serneke return for the projects on attractive terms with an associated contract and without a requirement of further financing. The development rights involved covered a total of around 100,000 square meters and are allocated to 13 projects. The framework agreement on the development rights sale is expected to provide a total positive liquidity infusion of around SEK 250 million that is realized at the respective project's occupancy date. During the quarter, seven projects were withdrawn and provided a positive liquidity effect of SEK 178 million and generated an operating profit of SEK 85 million.
After discussions with the Board of Directors, Serneke Group decided that Ola Serneke will leave the role as the President and CEO of Serneke Group on 24 February. At the same time, he also left his post as a member of the Company's Board of Directors. Ola Serneke will continue to be responsible for the Company's major projects in
urban development in his role as the President of Serneke Invest. Michael Berglin, Deputy CEO of Serneke Group, will take the position of the acting President and CEO. The changes in management for Serneke Group were precipitated by Ola Serneke's activity in online discussion forums under pseudonyms. An external independent investigation was appointed by the Board of Directors, which showed that no violations occurred of the regulations, but that the actions were an expression of poor judgment.
Serneke is carefully monitoring the development of the coronavirus pandemic to assess the effects in the shortand long-term perspective. The entire economy is affected, but it is difficult to assess the extent and manner in which it affects Serneke's business in the long-term perspective. During the quarter, the coronavirus pandemic had an indirect impact on ongoing productions in the form of delays.
There were no significant events after the end of the reporting period.
Serneke Group AB has two share series, Series A and B. On March 31, 2021, Serneke had approximately 8,960 shareholders and the closing price on March 31, 2021 was SEK 48.95.
| Class A shares | Class B shares | Total number of shares |
Percentage of outstanding shares, % |
Percentage of votes, % |
|
|---|---|---|---|---|---|
| Ola Serneke Holding AB | 3,710,000 | 2,406,148 | 6,116,148 | 21.89% | 52.80% |
| Lommen Holding AB | 540,000 | 3,646,482 | 4,186,482 | 14.98% | 12.09% |
| Christer Larsson i Trollhättan AB |
380,000 | 497,000 | 877,000 | 3.14% | 5.74% |
| Ledge Ing AB | 330,000 | 569,157 | 899,157 | 3.22% | 5.17% |
| Vision Group i väst AB | 250,000 | 665,325 | 915,325 | 3.28% | 4.23% |
| Fastighets AB Balder | 0 | 2,300,000 | 2,300,000 | 8.23% | 3.07% |
| Svolder Aktiebolag | 0 | 2,077,608 | 2,077,608 | 7.44% | 2.78% |
| Försäkringsaktiebolaget Avanza | 0 | 872,922 | 872,922 | 3.12% | 1.17% |
| Novobis AB | 0 | 366,708 | 366,708 | 1.31% | 0.49% |
| Michael Berglin | 0 | 271,974 | 271,974 | 0.97% | 0.36% |
| Total, 10 largest | 5,210,000 | 13,673,324 | 18,883,324 | 67.59% | 87.90% |
| Other shareholders | 0 | 9,054,921 | 9,054,921 | 32.41% | 12.10% |
| Total shares outstanding | 5,210,000 | 22,728,245 | 27,938,245 | 100.00% | 100.00% |
| Repurchased shares | 0 | 814,987 | 814,987 | ||
| Total shares registered | 5,210,000 | 23,543,232 | 28,753,232 |
Source: Euroclear and Serneke
Share series, number of shares and votes, March 31, 2021
| Share class | Shares | Votes | |
|---|---|---|---|
| Class A shares | 5,210,000.00 | 5,210,000.00 | |
| Class B shares | 22,728,245.00 | 2,272,824.50 | |
| Total | 27,938,245.00 | 7,482,824.50 |
Interim Report January–June July 15, 2021 Interim Report January–September October 28, 2021 Year-end report 2021 February 9, 2022
The Board of Directors certifies that this Interim Report provides a fair overview of the Parent Company and Group's operations, position and performance and describes significant risks and uncertainties facing Serneke.
This report has not been reviewed by the Company's auditors.
Gothenburg, May 6, 2021 Serneke Group AB (publ)
Board of Directors
Jan C. Johansson Chairman
Mari Broman Member
Ludwig Mattsson Member
Veronica Rörsgård Member
Anna Belfrage Member
Fredrik Alvarsson Member
Per Åkerman Member
Michael Berglin, CEO E-mail: [email protected] Phone:: +46 (0) 31712 97 00
Anders Düring, CFO E-mail: [email protected] Phone:: 070 88 87 733
This information is such that Serneke Group AB (publ) is obliged to publish pursuant to the EU Market Abuse Regulation. The information was submitted for publication on May 6, 2021, at 8:00 a.m.
| 2020 2020 2020 2019 2019 2019 SEK M 2021 2020 Revenue Sweden 1770 2025 1,592 1,461 1,912 2095 1,421 1,661 Invest 337 223 28 28 46 250 40 64 International 0 0 0 0 0 0 0 0 Group-wide 33 17 20 14 37 43 44 45 Eliminations -190 -99 -142 -110 -181 -135 -129 -154 Total 1,950 2,166 1,498 1,393 1,814 2,253 1,376 1,616 Operating profit/loss Sweden -10 -65 -62 -134 -70 43 -2 26 Invest 71 -4 -10 -4 -73 -118 2 -10 International -4 -3 -3 -3 -4 0 0 -1 Group-wide -17 -6 0 5 1 -12 2 -4 Eliminations -9 31 -4 -3 -3 -10 -7 -11 Total 31 -47 -79 -139 -149 -97 -5 0 Operating margin, % 1.6 -2.2 -5.3 -10.0 -8.2 -4.3 -0.4 0.0 Profit/loss after net financial items 38 -119 -82 -147 -154 -85 -30 -3 Earnings for the period 46 -72 -66 -114 -106 -63 -27 -2 Balance sheet Non-current assets 2158 2156 757 779 678 661 941 910 Current assets 3807 3836 4962 4872 4927 5,073 4753 4654 Total assets 5,965 5,992 5,719 5,651 5,605 5,734 5,694 5,564 Shareholders' equity 2,161 1946 1,896 1,959 2,074 2,179 2,238 2,263 Non-current liabilities 1,182 1058 1,245 1,262 1,430 1,719 1,615 1,669 Current liabilities 2,622 2988 2,578 2,430 2,101 1,836 1,841 1,632 5,965 5,992 5,719 5,651 5,605 5,734 5,694 5,564 Total equity and liabilities Orders Order bookings 1,179 961 1,851 2,975 2,969 1,792 2,663 4,852 Order backlog 13,126 10,623 11,072 10,576 8,943 7,662 7,149 13,619 Staff Average number of employees 1,174 1,161 1,180 1,202 1,195 1153 1,173 1,178 |
Jan–Mar | Oct–Dec | Jul–Sep | Apr–Jun | Jan–Mar | Oct–Dec | Jul–Sep | Apr–Jun |
|---|---|---|---|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Jan–Dec | ||
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Revenue | 1,950 | 1,814 | 7,007 | 6,871 |
| Earnings per share, SEK, before dilution | 1.65 | -4.73 | -8.58 | -15.82 |
| Earnings per share , SEK after dilution | 1.65 | -4.73 | -8.58 | -15.82 |
| Weighted average number of shares before dilution | 27,938,245 | 22,433,465 | 24,001,327 | 22,625,132 |
| Weighted average number of shares after dilution | 27,938,245 | 22,481,968 | 24,021,536 | 22,657,467 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Operating profit/loss | 31 | -149 | -234 | -414 |
| Growth, % | 7.5 | 22.6 | -0.7 | 2.2 |
| Order bookings | 1,179 | 2,975 | 8,843 | 10,639 |
| Order backlog | 13,126 | 10,576 | 13,126 | 13,619 |
| Organic growth, % | 7.5 | 22.6 | -0.7 | 2.2 |
| Operating margin, % | 1.6 | -8.2 | -3.3 | -6.0 |
| Cash flow before financing | -2 | -249 | -125 | -372 |
| Cash flow from operations per share, before | ||||
| dilution | -0.07 | -10.39 | -5.04 | -15.56 |
| Cash flow from operations per share, after | ||||
| dilution | -0.07 | -10.39 | -5.04 | -15.56 |
| Equity per share, SEK, before dilution | 77.35 | 92.45 | 77.35 | 78.68 |
| Equity per share , SEK after dilution | 77.35 | 92.25 | 77.35 | 78.68 |
| Working capital | 1,185 | 2,826 | 1,185 | 848 |
| Capital employed | 3,642 | 3,434 | 3,642 | 3,539 |
| Return on capital employed, % | -6.0 | -6.9 | -6.0 | -11.4 |
| Return on equity after taxes, % | -9.7 | -9.1 | -9.7 | -17.4 |
| Equity/assets ratio, % | 36.2 | 37.0 | 36.2 | 32.5 |
| Net debt | -135 | 1,198 | -135 | 20 |
| Net debt/equity ratio, % | -6.2 | 57.8 | -6.2 | 1.0 |
| Net debt/EBITDA | 0.9 | -6.1 | 0.9 | -0.1 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Revenue | 1,950 | 1,814 | 7,007 | 6,871 |
| Production and administration expenses | -1,882 | -1,929 | -7,171 | -7,218 |
| Gross profit | 68 | -115 | -164 | -347 |
| Sales and administration expenses | -35 | -40 | -75 | -80 |
| Earnings effect of establishment of joint ventures | – | – | 2 | 2 |
| Share in profit of associates and joint ventures | -2 | 6 | 3 | 11 |
| Operating profit/loss | 31 | -149 | -234 | -414 |
| Net financial items | 7 | -5 | -76 | -88 |
| Earnings after financial items | 38 | -154 | -310 | -502 |
| Taxes | 8 | 48 | 104 | 144 |
| Earnings for the period | 46 | -106 | -206 | -358 |
| Attributable to: | ||||
| Parent Company shareholders | 46 | -106 | -206 | -358 |
| Non-controlling interests | 0 | 0 | 0 | 0 |
| Earnings per share before dilution, SEK | 1.65 | -4.73 | -8.58 | -15.82 |
| Earnings per share after dilution, SEK | 1.65 | -4.73 | -8.58 | -15.82 |
| Average number of shares before dilution | 27,938,245 | 22,433,465 | 24,001,327 | 22,625,132 |
| Average number of shares after dilution | 27,938,245 | 22,481,968 | 24,021,536 | 22,657,467 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Earnings for the period | 46 | -106 | -206 | -358 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Total comprehensive income | 46 | -106 | -206 | -358 |
| Mar 31 | Mar 31 | Dec 31 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2020 |
| ASSETS | |||
| Non-current assets | |||
| Intangible fixed assets | 24 | 23 | 24 |
| Other tangible fixed assets | 406 | 309 | 416 |
| Investments in associates/joint ventures | 154 | 151 | 148 |
| Deferred tax assets | 23 | – | 15 |
| Non-current interest-bearing receivables | 1,351 | 50 | 1,354 |
| Other non-current receivables | 200 | 145 | 199 |
| Total non-current assets | 2,158 | 678 | 2,156 |
| Current assets | |||
| Project and development properties | 1,748 | 3,049 | 1,740 |
| Inventories | 1 | 1 | 1 |
| Accounts receivable | 1,000 | 883 | 1,012 |
| Accrued but not invoiced revenue | 400 | 593 | 420 |
| Other current receivables | 370 | 289 | 429 |
| Cash and bank balances | 288 | 112 | 234 |
| Total current assets | 3,807 | 4,927 | 3,836 |
| Total assets | 5,965 | 5,605 | 5,992 |
| Equity and liabilities | |||
| Shareholders' equity | 2,161 | 2,074 | 1,946 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 1,000 | 947 | 840 |
| Other non-current liabilities | 32 | 162 | 31 |
| Deferred tax liability | – | 80 | – |
| Other provisions | 150 | 241 | 187 |
| Total non-current liabilities | 1,182 | 1,430 | 1,058 |
| Current liabilities | |||
| Current interest-bearing liabilities | 504 | 413 | 768 |
| Current tax liabilities | – | 1 | 2 |
| Accounts payable | 974 | 1,037 | 1,058 |
| Invoiced but not accrued revenue | 739 | 399 | 618 |
| Other current liabilities | 405 | 251 | 542 |
| Total current liabilities | 2,622 | 2,101 | 2,988 |
| Total equity and liabilities | 5,965 | 5,605 | 5,992 |
| Mar 31 | Mar 31 | Dec 31 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2020 |
| Equity attributable to Parent Company shareholders | |||
| Balance at beginning of period | 1,946 | 2,179 | 2,179 |
| New share issue | 167 | – | 121 |
| Share-related compensation | 2 | 1 | 4 |
| Transactions with non-controlling interests | – | – | 0 |
| Comprehensive income for the period | – | – | -358 |
| Non-controlling interests | |||
| Acquisition of non-controlling interests | – | – | – |
| Comprehensive income for the period | 46 | -106 | – |
| Balance at end of period | 2,161 | 2,074 | 1,946 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Operating activities | ||||
| Cash flow before change in working capital | 3 | -77 | -279 | -359 |
| Change in working capital | -5 | -156 | 158 | 7 |
| Cash flow from current operations | -2 | -233 | -121 | -352 |
| Investment activities | ||||
| Increase/decrease in investing activities | 0 | -16 | -4 | -20 |
| Cash flow from investment activities | 0 | -16 | -4 | -20 |
| Cash flow before financing | -2 | -249 | -125 | -372 |
| Financing activities | ||||
| Newly raised borrowings | 36 | 33 | 140 | 137 |
| New share issue | 167 | 0 | 289 | 122 |
| Amortization of liabilities | -148 | -262 | -261 | -375 |
| Dividend | 0 | 0 | 0 | 0 |
| Increase/decrease in financing activities | 1 | 428 | 133 | 560 |
| Cash flow from financing activities | 56 | 199 | 301 | 444 |
| Cash flow for the period | 54 | -50 | 176 | 72 |
| Cash and cash equivalents at beginning of period | 234 | 162 | 112 | 162 |
| Cash and cash equivalents at end of period | 288 | 112 | 288 | 234 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Revenue | 33 | 37 | 84 | 88 |
| Sales and administration expenses | -44 | -49 | -90 | -95 |
| Operating profit/loss | -11 | -12 | -6 | -7 |
| Net financial items | -18 | -12 | -114 | -108 |
| Earnings after financial items | -29 | -24 | -120 | -115 |
| Year-end appropriations | 0 | 0 | 0 | 0 |
| Profit/loss before tax | -29 | -24 | -120 | -115 |
| Taxes | 5 | 5 | 0 | 0 |
| Earnings for the period | -24 | -19 | -120 | -115 |
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |
|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2020/2021 | 2020 |
| Earnings for the period | -24 | -19 | -120 | -115 |
| Other comprehensive income | 0 | 0 | 0 | 0 |
| Total comprehensive income | -24 | -19 | -120 | -115 |
| Mar 31 | Mar 31 | Dec 31 | |
|---|---|---|---|
| SEK M | 2021 | 2020 | 2020 |
| ASSETS | |||
| Non-current assets | |||
| Tangible fixed assets | 8 | 10 | 9 |
| Participations in Group companies | 307 | 302 | 306 |
| Deferred tax assets | 18 | 18 | 13 |
| Other non-current receivables | 3 | 3 | 3 |
| Total non-current assets | 336 | 333 | 331 |
| Current assets | |||
| Project and development properties | 2 | 2 | 2 |
| Other current receivables | 1,576 | 1,830 | 1378 |
| Cash and bank balances | 157 | 1 | 115 |
| Total current assets | 1,735 | 1,833 | 1,495 |
| Total assets | 2,071 | 2,166 | 1,826 |
| Equity and liabilities | |||
| Shareholders' equity | 573 | 398 | 428 |
| Non-current liabilities | |||
| Non-current interest-bearing liabilities | 522 | 700 | 522 |
| Other provisions | 2 | 2 | 2 |
| Total non-current liabilities | 524 | 702 | 724 |
| Current liabilities | |||
| Current interest-bearing liabilities | 203 | 199 | 207 |
| Accounts payable | 15 | 19 | 9 |
| Other current liabilities | 756 | 848 | 658 |
| Total current liabilities | 974 | 1,066 | 674 |
| Total equity and liabilities | 2,071 | 2,166 | 1,826 |
This Interim Report has been prepared in accordance with IAS 34, Interim Financial Reporting. The Interim Report has been prepared in accordance with International Financial Reporting Standards (IFRS), as well as interpretations of current International Financial Reporting Interpretations Committee (IFRIC) standards as adopted by the EU. The Parent Company's reports have been prepared in compliance with the Annual Accounts Act and the Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. ESMA's guidelines on alternative key indicators are applied in the report.
The Interim Report has been prepared in accordance with the same accounting principles and calculation methods as in the Annual Report for 2020. For detailed information regarding accounting policies, see Serneke's 2020 Annual Report at www.serneke.group.
Financial assets and financial liabilities measured at fair value in the balance sheet are classified according to one of three levels based on the information used to establish the fair value. The Group only holds financial assets and liabilities valued in level 3, which is why levels 1 and 2 have been omitted in the table below. No transfers have been made between the levels during the periods. A more detailed description of the levels can be found in Note 4 of the 2020 Annual Report.
Level 1 - Valuation is made according to prices in active markets for identical instruments.
Level 2 – Financial instruments for which the fair value is established based on valuation models that are based on observable data for the asset or liability other than quoted prices included in Level 1.
Level 3 – Financial instruments for which fair value is established based on valuation models where significant inputs are based on non-observable data.
| Dec | |||
|---|---|---|---|
| Mar 31 | Mar 31 | 31 | |
| Group SEK million | 2021 | 2020 | 2020 |
| Financial assets | |||
| Non-current interest-bearing | |||
| receivables* | – | – | 1,320 |
| Financial assets available for | |||
| sale** | 2 | 2 | 2 |
| Total financial assets | 2 | 2 | 1,322 |
| Financial liabilities | |||
| Other current and non-current | |||
| liabilities | 23 | 23 | 23 |
| Of which, additional purchase considerations*** |
23 | 23 | 23 |
* In the calculation of the fair value of the shareholder loan against Karlatornet at December 31, 2020, an estimated market rate was used. The valuation was based on observable interest rates and dividends that were agreed with more senior credits from Nordea and Balder within the scope of the financing of Karlatornet. As at March 31, 2021, the shareholder loan is recognized at amortized cost and amounts to SEK 1,325 million. ** In the fair value calculation of available-for-sale financial assets at level 3, the market price method has been applied and the yield value assumption has been used. *** In the fair value calculation of the additional purchase considerations at level 3, project estimates, budgets and forecasts have been applied.
The fair value of the obligation amounts to SEK 700 million. For the Group's other financial assets and financial liabilities, the reported values are assessed as corresponding to FAIR VALUE. No significant changes in valuation models, assumptions or inputs were made during the period.
The Group pledges collateral for external loans. The Group's contingent liabilities arise primarily in connection with different property disposals, whereby various operational guarantees may occur, as well as performance guarantees for future contracts. Serneke Group AB (publ) has also entered into a guarantee undertaking, which means that the co-owners in Prioritet Serneke Arena are jointly responsible for the correct fulfillment of interest and repayment of the associate's liabilities to credit institutions in the event that the associate is unable to pay.
Pledged assets and contingent liabilities in the consolidated balance sheet:
| Mar 31 | Mar 31 | Dec 31 | |
|---|---|---|---|
| Group | 2021 | 2020 | 2020 |
| Pledged assets | 1,884 | 1,919 | 2,017 |
| Contingent liabilities | 927 | 544 | 888 |
| Pledged assets | 500 | 500 | 500 |
|---|---|---|---|
| Contingent liabilities | 2,633 | 2,650 | 2,628 |
In March 2021, Serneke completed the construction of the residential project Ophelias Brygga in Helsingborg, with 124 apartments built on behalf of Magnolia Bostad.
| Jan-Mar 2021, SEK million | Sweden | Invest | International | Group-wide | Elimination | Total |
|---|---|---|---|---|---|---|
| Construction revenue | 1,767 | 160 | – | 0 -157 |
1,770 | |
| Sale of properties and development rights | – | 169 | – | – – |
169 | |
| Rental revenue | – | 2 | – | 3 -3 |
2 | |
| Other revenue | 3 | 6 | – | 30 | -30 | 9 |
| Total revenue | 1,770 | 337 | – | 33 -190 |
1,950 | |
| Date of revenue recognition: | ||||||
| At a specific time | 3 | 175 | – | 30 | -30 | 178 |
| Over time | 1,767 | 162 | – | 3 -160 |
1,772 | |
| Total revenue | 1,770 | 337 | – | 33 -190 |
1,950 | |
| Jan-Mar 2020, SEK million | Sweden | Invest | International | Group-wide | Elimination | Total |
| Construction revenue | 1,511 | 33 | – | 0 -144 |
1,400 | |
| Sale of properties and development rights | 399 | – | – | – – |
399 | |
| Rental revenue | 0 | 2 | – | 3 -3 |
2 | |
| Other revenue | 2 | 11 | – | 34 | -34 | 13 |
| Total revenue | 1,912 | 46 | – | 37 -181 |
1,814 | |
| Date of revenue recognition: | ||||||
| At a specific time | 401 | 11 | – | 34 | -34 | 412 |
| Over time | 1,511 | 35 | – | 3 -147 |
1,402 |
Revenue from contracting agreements are reported in accordance with IFRS 15 Revenue from Contracts with Customers, either by fulfilling the performance undertaking over time (that is, gradually) or at one specific time. Construction contracts mean that the construction is performed on the customer's land, where an asset is created over which the customer gains control in pace with the completion of the asset. This entails revenue being recognized gradually (over time), applying percentage-of-completion. When applying percentageof-completion, the input method applies whereby revenue is reported based on the degree of completion, The stage of completion is calculated as the relationship between contract expenses incurred for work completed at the end of the reporting period, and estimated total contract expenses. Revaluations of the project's final forecasts entail corrections of previously accumulated earnings. If it is probable that the total contract expenses
will exceed the total contract revenue, the anticipated loss should be immediately recognized as a cost in its entirety. Additional orders and amendments are included in the revenue from the assignment to the extent that they are approved by the customer.
On disposal of properties or development rights directly or indirectly through a sale of shares, the underlying property or development right's value is recognized in the Group as revenue. Revenue from property sales is reported at the time at which the new owner takes possession. When contracts include property sales, development rights and construction contracting to the buyer of the planned building, an assessment is made regarding whether the property and/or development rights transactions and the construction contract are separate performance undertakings. Depending on the design and terms of the agreement, the sale can be seen as one or several
performance undertakings. Sales are reported at the point in time at which control is transferred to the buyer. Control is transferred over time if the seller has no alternative use for the property sold and the seller is entitled to payment from the customer for the work performed. In such cases, revenue is reported applying percentage of completion. If any of the above criteria are not met, revenue is reported at a single point in time, on completion and transfer to the customer.
Sales of development rights can be dependent upon decisions regarding future detailed development plans. An assessment is then made as to the probability of the respective detailed development plan. Sales revenue and earnings are recognized when the probability is deemed to be very high. When sales revenue is recognized, all remaining commitments in the sales earnings are also taken into account. Property projects are also on occasion sold with guarantees for a certain degree of leasing and, at the time of sale, any lease guarantees are reported as a
reserve in the project, which then has a positive effect on the percentage of completion as leases are signed.
Revenue also includes rental revenue, which is to be considered as operating leases. Rental revenue is invoiced in advance and recognized on a straight-line basis in the revenue statement based on the terms of the lease agreements. Advance rent is reported as prepaid rental revenue. In cases where the rental contract allows a reduced rent for a certain period of time, which is compensated for by higher rent during another period, this is allocated across the term of the contract.
Other revenue refers to revenue not classified as construction revenue, sales of properties and development rights or rental revenue, including, for example, hotel revenue, government grants or revenue from central companies.
| Key | Definition | Purpose | ||||
|---|---|---|---|---|---|---|
| indicators Growth |
||||||
| Revenues for the period less revenues for the previous period divided by revenues for the previous period. |
In the Company's view, the key indicator allows investors, who so wish, to assess the |
|||||
| Company's capacity to increase its earnings. | ||||||
| Organic | Revenue for the period, adjusted for acquired growth, less | In the Company's view, the key indicator | ||||
| growth | revenue for the previous period, adjusted for acquired | allows investors, who so wish, to assess the | ||||
| growth, divided by revenue for the previous period, | Company's capacity to increase its revenue | |||||
| adjusted for acquired growth. | without acquiring operating companies. | |||||
| Jan-Mar | Jan-Mar | Apr-Mar | Jan–Dec | |||
| Calculation of organic growth | 2020 2021 |
2020/2021 | 2020 | |||
| Revenue current period | 1,950 1,814 |
7,007 | 6,871 | |||
| Revenue corresponding period previous period | 1,814 1,480 |
7,059 | 6,725 | |||
| Revenue change | 136 334 |
-52 | 146 | |||
| Adjustment for structural effect | 0 0 |
0 | 0 | |||
| Total organic growth | 136 334 |
-52 | 146 | |||
| Total organic growth (%) | 7.5% 22.6% |
-0.7% | 2.2% | |||
| Order | The value of new projects and changes in existing projects | In Serneke's view, the key indicator allows | ||||
| bookings | during the period. | investors, who so wish, to assess the Group's | ||||
| sales by Business Area Construction for the | ||||||
| current period. | ||||||
| Order | The value of the Company's undelivered orders at the end | In the Company's view, the key indicator | ||||
| backlog | of the period excluding cooperation agreements. | |||||
| allows investors, who so wish, to assess the Company's revenue in Business Area |
||||||
| Construction in future periods. | ||||||
| Operating | Operating profit divided by revenue. | In the Company's view, the key indicator | ||||
| margin | allows investors, who so wish, to assess the | |||||
| Company's profitability. | ||||||
| Operating | Current assets less current liabilities. | In the Company's view, the key indicator | ||||
| capital | allows investors, who so wish, to assess the | |||||
| Company's tied-up capital in relation to its | ||||||
| competitors. | ||||||
| Capital | Consolidated total assets less deferred tax assets less non | In the Company's view, the key indicator | ||||
| employed | interest-bearing liabilities including deferred tax liabilities. | allows investors, who so wish, to assess the | ||||
| total capital placed at the Company's disposal by shareholders and creditors. |
||||||
| Calculation of capital employed | Mar 31 | Mar 31 | Dec 31 | |||
| 2021 | 2020 | 2020 | ||||
| Total assets | 5,965 | 5,605 | 5,992 | |||
| Deferred tax assets | -23 | – | -15 | |||
| Less non-interest-bearing liabilities including deferred tax liabilities | -2,300 | -2,171 | -2,438 | |||
| Capital employed | 3,642 | 3,434 | 3,539 | |||
| Key | Definition | Purpose | |||
|---|---|---|---|---|---|
| indicators | |||||
| Return on capital employed |
Profit after net financial items plus financial expenses divided by average capital employed for the period. Accumulated interim periods are based on rolling 12- month earnings. |
In the Company's view, the key indicator allows investors, who so wish, to assess the Company's capacity to generate a return on the total capital placed at the Company's disposal by shareholders and creditors. |
|||
| Calculation of average capital employed | Mar 31 | Mar 31 | Dec 31 | ||
| March 31, 2021 (3,642) + March 31, 2020 (3,434) / 2 | 2021 3,538 |
2020 | 2020 | ||
| March 31, 2020 (3,434) + March 31, 2019 (3,551) / 2 | 3,493 | ||||
| 31 Dec 2020 (3,539) + 31 Dec 2019 (3,602) / 2 | 3,571 | ||||
| Mar 31 | Mar 31 | Dec 31 | |||
| Calculation of return on capital employed | 2021 | 2020 | 2020 | ||
| Profit/loss after net financial items | -310 | -272 | -502 | ||
| Plus financial expenses | 97 | 30 | 96 | ||
| Average capital employed | 3,538 | 3,493 | 3,571 | ||
| Return on capital employed | -6.0% | -6.9% | -11.4% | ||
| Equity per share, before/afte r dilution |
Total equity according to the balance sheet divided by the number of shares outstanding on the closing date. The difference between before and after dilution is accounted for by the convertibles issued by the Group. |
per share at the closing date. | The Company believes that key indicators give investors a better understanding of historical return |
||
| Cash flow from operations per share, before/afte r dilution |
Cash flow from operating activities divided by the average number of shares for the period. The difference between before and after dilution is accounted for by the convertibles issued by the Group. |
It is the Company's view that the key indicator gives investors a better understanding of the operations' cash flow in relation to the number of shares, adjusted for changes in the number of shares during the period. It is the Company's view that the key indicator gives |
|||
| Earnings per share, before/afte r dilution |
Profit/loss for the period divided by the average number of shares outstanding during the period. The difference between before and after dilution is accounted for by the convertibles issued by the Group. |
investors a better understanding of profit per share. |
| Key indicators | Definition | Purpose | |||
|---|---|---|---|---|---|
| Return on equity | Profit for the period as a percentage of average shareholders' equity. Accumulated interim periods are based on rolling 12-month earnings. |
In the Company's view, the key indicator allows investors, who so wish, to assess the Company's capacity to generate a return on the capital shareholders have placed at the Company's disposal. |
|||
| Calculation of average shareholders' equity | Mar 31 2021 |
Mar 31 2020 |
Dec 31 2020 |
||
| March 31, 2021 (2,161) + March 31, 2020 (2,074) / 2 | 2,118 | ||||
| March 31, 2020 (2,074) + March 31, 2019 (2,257) / 2 | 2,166 | ||||
| 31 Dec 2020 (1,946) + 31 Dec 2019 (2,179) / 2 | 2,063 | ||||
| Calculation of return on shareholders' equity | Mar 31 | Mar 31 | Dec 31 | ||
| Earnings for the period | 2021 -206 |
2020 -198 |
2020 -358 |
||
| Average shareholders' equity | 2,118 | 2,166 | 2,063 | ||
| Return on equity | -9.7% | -9.1% | -17.4% | ||
| Equity/assets ratio | Shareholders' equity less minority interests as a percentage of total assets. |
The equity/assets ratio shows the proportion of total assets represented by shareholders' equity and has been included to allow investors to be able to assess the Company's capital structure. |
|||
| Net debt | Interest-bearing liabilities less liquid assets less interest-bearing receivables. |
Net debt is a measure deemed relevant for creditors and credit rating agencies. |
|||
| Net debt/equity ratio | Interest-bearing net debt divided by shareholders' equity. |
Net debt/equity ratio is a measure deemed relevant for creditors and credit rating agencies. |
|||
| EBITDA | Operating profit excluding amortization/depreciation. |
EBITDA is a measure deemed to provide investors a better understanding of the Company's earnings. |
|||
| Mar 31 | Mar 31 | Dec 31 | |||
| Calculation of EBITDA | 2021 | 2020 | 2020 | ||
| Operating profit/loss | -234 | -251 | -414 | ||
| Depreciation | 77 | 53 | 71 | ||
| EBITDA | -157 | -198 | -343 | ||
| Net debt/EBITDA | Interest-bearing liabilities less liquid assets less interest-bearing receivables divided by EBITDA. |
Net debt/EBITDA is a measure deemed relevant for creditors and credit rating agencies. |
Serneke is a growing corporate group and delivers comprehensive services in construction and project development with more than 1,100 employees. Through novel thinking, we drive development and create more effective and more innovative solutions for responsible construction. The business has a good mix of public and
Serneke Group AB (publ) Headquarters: Kvarnbergsgatan 2 411 05 Gothenburg Phone +46 (0)31-712 97 00 | [email protected] commercial assignments, providing strength over economic cycles.
Serneke's annual reports and other financial information are available under the tab Investors at www.serneke.se
On May 6, 2021 at 9:00 a.m. (CET), Serneke Group will comment on this Interim Report in a conference call with an online presentation for investors, analysts and the media. The presentation will be in Swedish and can be followed live via webcast at https://tv.streamfabriken.com/serneke-q1-2021. Presentation materials for the presentation will be available on the website one hour before the webcast begins.
To participate, please dial: +468 51 99 93 83
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