Dovre Group Oyj - Interim report (Q1 and Q3)

NET SALES AND RESULT UNCHANGED, STRONG GROWTH IN LOCAL CURRENCIES – DOVRE GROUP INTERIM REPORT JANUARY 1 – MARCH 31, 2014

Helsinki, Finland, 2014-04-24 07:45 CEST (GLOBE NEWSWIRE) -- Dovre Group Plc   
                Interim report                                            
April 24, 2014 at 8:45 a.m. 



NET SALES AND RESULT UNCHANGED, STRONG GROWTH IN LOCAL CURRENCIES
- DOVRE GROUP INTERIM REPORT JANUARY 1 - MARCH 31, 2014

January - March 2014
- Net sales EUR 24.7 (24.3) million
- Change in net sales 1.5%, net sales growth in local currencies 13%
- Project Personnel: net sales EUR 22.9 (22.2) million, change 3%, change in
local currencies 15% 
- Consulting: net sales EUR 1.8 (2.1) million, change -18%, change in local
currencies -10% 
- Operating result EUR 0.3 (0.3) million, which is 1.3 (1.3) % of net sales;
change in local currencies 46% 
- Result for the period EUR 0.1 (0.1) million
- Result for the period incl. discontinued operations EUR 0.1 (0.2) million
- Earnings per share (excl. discontinued operations) EUR 0.00 (0.00)
- Net cash flow from operating activities EUR -1.3 (0.4) million
- Net cash flow from operating activities incl. discontinued operations EUR
-1.3 (0.2) million 
- The Group's updated guidance for 2014: In 2014, net sales are expected to
grow and operating result to improve in local currencies from 2013. 

KEY FIGURES

EUR million                                           1-3    1-3   Change   1-12
                                                     2014   2013        %   2013
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales                                            24.7   24.3      1.5   98.5
--------------------------------------------------------------------------------
Operating result                                      0.3    0.3      1.3    2.4
--------------------------------------------------------------------------------
% of net sales                                        1.3    1.3             2.4
--------------------------------------------------------------------------------
Result for the period                                 0.1    0.1             1.2
--------------------------------------------------------------------------------
% of net sales                                        0.4    0.2             1.2
--------------------------------------------------------------------------------
Result for the period, incl. discontinued             0.1    0.2    -55.8    5.6
 operations                                                                     
--------------------------------------------------------------------------------
% of net sales                                        0.4    0.9             5.5
--------------------------------------------------------------------------------
Net cash flow from operations                        -1.3    0.4   -430.0    3.7
--------------------------------------------------------------------------------
Net cash flow from operations, incl. discontinued    -1.3    0.2   -895.7    3.2
 operations                                                                     
--------------------------------------------------------------------------------
Change in cash and cash equivalents, incl.           -1.7    0.1       -1    4.4
 discontinued operations                                            673.8       
--------------------------------------------------------------------------------
Debt-equity ratio (Gearing), %                      -52.5  -29.1     80.3  -50.0
--------------------------------------------------------------------------------
Earnings per share, EUR (excl. discontinued                                     
 operations)                                                                    
--------------------------------------------------------------------------------
Basic                                                0.00   0.00            0.02
--------------------------------------------------------------------------------
Diluted                                              0.00   0.00            0.02
--------------------------------------------------------------------------------



PATRICK VON ESSEN, CEO:

“Dovre Group's net sales developed positively in the first quarter of 2014. Net
sales growth in euros was 1.5%, but reached 13% in local currencies. The
strengthening of the euro in relation to the local currencies was strongest in
Dovre's key markets in Canada and Norway. Less than 2% of the Group's net sales
were in the Group's reporting currency. 

In Q1, the Group's net sales were EUR 24.7 million. Project Personnel, our
biggest business area, increased its net sales 3%. In local currencies, the
growth in net sales was 15%. Net sales for Consulting decreased by 18% in euros
and by 10% in local currencies. 

Our operating result in Q1 remained on the same level as the year before and
was EUR 0.3 million, which is 1.3% of net sales. Despite significant investment
in future growth through, for example, further development of Dovre Club, our
result improved 46% in local currencies. Project Personnel business developed
positively. In the Consulting business area, market situation remains
challenging. 

Commercial production of renewable fuel at the Group's associate SaraRasa
Bioindo in Indonesia has started and the company is increasing its production
capacity. 

We continue investing in future growth in accordance with the Group's strategy.
We are working towards improving the profitability of the Group's Consulting
business area by, for example, streamlining our sales process. I expect net
sales and operating result to grow in 2014. However, currency exchange rate
fluctuations may create challenges for euro net sales growth.” 

FUTURE OUTLOOK

Dovre Group Plc is an international company providing professional services to
the energy industry. Dovre Group has two business areas: Project Personnel and
Consulting. The Group's strategic aim is to become the most advanced
international player in its field. The company's long-term financial objective
is an operating profit margin on the level of 5-10% with an average annual net
sales growth of more than 15%. 

General economic insecurity has not significantly affected investment levels
among Project Personnel business area's customers, but clients have become more
cautious and lead times in certain markets are longer than previously. Dovre
Group expects demand for the business area's services to remain stable in key
market areas. 

In the beginning of the year, the Group's consulting business in Norway was
affected by suspension of projects due to clients' increased cautiousness. This
had an impact on the Group's net sales in the first quarter. The Group expects
moderate increase in customer demand in Norway, Finland, and Sweden in the
second half of 2014. 

The Board of Directors has updated the Group's guidance for 2014. Updated
guidance: In 2014, net sales are expected to grow and operating result to
improve in local currencies from 2013. The Group has updated its guidance
because the company cannot control euro exchange rate developments. 


Helsinki, April 23, 2014

Dovre Group Plc
Board of Directors


For additional information, please contact
Dovre Group Plc
Patrick von Essen, CEO
Tarja Leikas, CFO
tel. +358-20-436 2000
email: firstname.surname@dovregroup.com
www.dovregroup.com

Distribution
NASDAQ OMX Helsinki Ltd
Major media
www.dovregroup.com

Attachments:

Dovre Group Q1 2014_EN.pdf