Brief: Wastbygg Posts Profit Warning Amid Bankruptcies Of Subcontractors

Wastbygg Gruppen AB (publ)

22/01/2024 06:12

Jan 22 (Reuters) - Wastbygg Gruppen AB (publ)
 WBGRb.ST :
    * SAID ON FRIDAY Q4 RESULT WAS HIT BY COSTS RELATED TO
BANKRUPTCIES OF SUBCONTRACTORS, A MORE CAUTIOUS ASSESSMENT OF
FUTURE INCOME IN SELF-DEVELOPED TENANT-OWNERSHIP PROJECTS CAUSED
BY STAGNANT HOUSING MARKET
    * EXPECTS OPERATING LOSS FOR Q4 AT SEK 270 MILLION ACCORDING
TO
SEGMENT REPORTING
    * RESULT IS CHARGED BY WRITE-DOWNS OF ASSETS, WITH TOTAL
EFFECTS
OF ABOUT SEK 320 MILLION
    * CHALLENGING MARKET WITHIN THE RESIDENTIAL BUSINESS AREA
HAS
CONTINUED DURING H2 2023, WHICH HAS LED TO WRITE-DOWNS IN OWN
DEVELOPED TENANT-OWNERSHIP PROJECTS
    * DURING FALL, WE HAVE SEEN FURTHER WEAKENING WITH EVEN
LOWER
WILLINGNESS TO INVEST IN AND BUY HOUSING AND RESIDENTIAL
PROPERTIES - CEO
    * BANKRUPTCIES HAVE TAKEN PLACE AT CRITICAL STAGES FOR
PROJECTS,
WHICH HAVE BECOME MORE COSTLY TO MANAGE, HITTING RESULT FOR
RESIDENTIAL BUSINESS 
    * WEAK PROPERTY MARKET HAS RESULTED IN CONTINUED HIGH DEGREE
OF
UNCERTAINTY REGARDING VALUATION OF DEVELOPMENT PROPERTIES
    * IT IS COMPANY'S ASSESSMENT THAT COMPANY WILL CONTINUE TO
COMPLY
WITH FINANCIAL COVENANTS ESTABLISHED FOR GREEN BOND AND OTHER
CREDITS

        
 Source text for Eikon:  urn:newsml:reuters.com:*:nMFN7RVQ54
 Further company coverage:  WBGRb.ST  

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