Year-end Report January-December 2019
A quarter pervaded by transactions and strong order bookings.
Order bookings amounted to SEK 2,969 million (1,000)
Income amounted to SEK 2,253 million (1,991)
The operating loss amounted to SEK 97 million (profit 509)
Cash flow from operating activities amounted to SEK 83 million (264). Cash flow was affected adversely by investments of SEK 157 million in the production of tenant-owner apartments and the Karlastaden project
The loss for the period amounted to SEK 63 million (profit 572)
The final settlement of the remaining additional purchase consideration for the Säve site strengthened the cash and bank balances by SEK 300 million and had a negative effect on operating profit by SEK 90 million
Order bookings amounted to SEK 8,601 million (4,692) and the order backlog was SEK 8,943 million (6,382)
Income amounted to SEK 6,725 million (6,516)
The operating loss amounted to SEK 84 million (profit 595)
Cash flow from operating activities amounted to an outflow of SEK 645 million (inflow 265). Cash flow was affected adversely by investments of SEK 484 million in the production of tenant-owner apartments and the Karlastaden project
The loss for the period amounted to SEK 82 million (profit 604)
Recalculated in accordance with the former accounting principle regarding tenant-owner apartments projects and assuming the Karlastaden project as external, income would have instead amounted to SEK 7,228 million and the operating loss would have been SEK 29 million.
The Board of Directors confirms the Company's dividend policy but chooses to await the outcome of current transactions before recommending a dividend for 2019 in the Notice to attend the Annual General Meeting.
Ola Serneke, CEO Serneke Group, comments:
- Both within the Company and externally, 2019 was a year marked by major challenges. The year also reflected the Company's view that having the courage to change is crucial, even though decisions may be difficult at that moment. We have vigorously addressed aspects bringing long-term organizational improvement and resulting in a more profitable company.
- Factors impacting earnings negatively included: capacity that has been kept on "standby" at Karlastaden, our long-term initiative in collaboration agreements, the earnings of the civil engineering operations, the restructuring costs for implementing the new organization, amended accounting principles and, last but not least, the final settlement in the sale of the Säve flygplats site. The combined negative impact on earnings of these circumstances in 2019 amounts to approximately SEK 380 million, and to about SEK 2.3 billion in sales.
Presentation of the Interim Report for January-December 2019
On February 5, 2020 at 9:00 a.m. (CET), Serneke Group will comment on this Year-End 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-q4-2019. Presentation materials for the presentation will be available on the website one hour before the webcast begins.
To participate, please dial: +46 8 50 55 83 59
Serneke secures land allocation for new city block in Hagastaden
Serneke intends to develop an entire city block in Hagastaden, in Stockholm. The project has now pro...
Serneke to construct 60 apartments in Backa
Serneke has signed a turnkey contract with Egnahemsbolaget in Gothenburg for a value of approximatel...
Construction of Brf Utsikten in Gårdsten has now commenced
The project to construct the Brf Utsikten tenant-owner housing association in Gårdsten has now been ...
Serneke signs cooperation agreement on new wastewater treatment plant in Kalmar
Serneke Construction has signed a cooperation agreement with Kalmar Vatten AB to develop a new sewag...
Serneke commences preliminary study regarding new Swedish national soccer training center
Serneke, the Municipality of Järfälla and the Swedish Football Association (SvFF) are to sign a lett...
Serneke signs contracting agreement for 194 apartments in Upplands Väsby
Serneke Construction has signed a turnkey contracting agreement with Väsbyhem to construct 194 apart...
Reduced costs by SEK 200 million when Serneke streamlines the organization
Serneke takes the next step in a large reorganization that the company initiated in the fall of 2019...
The sale of Karlatornet is being postponed
Completion of the sale of Karlatornet, which was due to happen within days, is being postponed. The ...
Serneke to construct 400 homes in Brandbergen
Serneke will be the contractor when Brandbergen Centrum, in the municipality of Haninge outside Stoc...