Dovre Group Oyj - Interim report (Q1 and Q3)

DOVRE GROUP INTERIM REPORT (IFRS) JANUARY 1 – JUNE 30, 2013

Helsinki, Finland, 2013-07-25 07:45 CEST (GLOBE NEWSWIRE) -- 
Dovre Group Plc                        Interim report                          
July 25, 2013 at 08:45 a.m. 

DOVRE GROUP INTERIM REPORT (IFRS) JANUARY 1 - JUNE 30, 2013

Dovre Group's operating profit improved from previous quarters. Net sales
growth rate remains steady. 

(Unless otherwise stated, last year's corresponding period in parentheses.)

SUMMARY

April - June 2013

  -- Net sales EUR 25.3 (23.2) million - growth 9%
  -- Project Personnel: net sales EUR 23.0 (21.0) million - growth 10%
  -- Consulting: net sales EUR 2.3 (2.2) million - growth 4%
  -- Operating result EUR 0.8 (1.1) million, which is 3.3% (4.9%) of net sales
  -- Result for the period incl. discontinued operations EUR 4.6 (0.9) million
  -- Earnings per share incl. discontinued operations EUR 0.07 (0.01)
  -- Net cash flow from operating activities incl. discontinued operations EUR
     -0.8 (-0.4) million, excl. discontinued operations EUR -0.6 (-0.8) million
  -- Change in cash and cash equivalents incl. discontinued operations EUR 2.8
     (-1.2) million

January - June 2013

  -- Net sales EUR 49.7 (45.3) million - growth 10%
  -- Project Personnel: net sales EUR 45.2 (40.7) million - growth 11%
  -- Consulting: net sales EUR 4.4 (4.5) million - change -2%
  -- Operating result EUR 1.1 (2.0) million, which is 2.3% (4.5%) of net sales
  -- Result for the period incl. discontinued operations EUR 4.8 (1.7) million
  -- Earnings per share incl. discontinued operations EUR 0.08 (0.03)
  -- Net cash flow from operating activities incl. discontinued operations EUR
     -0.7 (0.4) million, excl. discontinued operations EUR -0.2 (-0.1) million
  -- Change in cash and cash equivalents incl. discontinued operations EUR 2.9
     (-0.8) million

The Group's Software business area, which was sold in the second quarter of
2013, has been reported under discontinued operations as of the fourth quarter
of 2012 and thus impacts only the Group's net result. Result for the period,
discontinued operations, EUR 4.3 million, includes the discontinued operations'
result for the period and the Group's gain on disposal. 

In 2013, net sales are expected to grow from 2012. In 2013, operating result
excluding extraordinary items is expected to remain below 2012 operating
result, being 1.5 - 3% of net sales. 

The interim report is unaudited.

KEY FIGURES

                             4-6     4-6  Change     1-6     1-6  Change    1-12
(EUR million)               2013    2012       %    2013    2012       %    2012
Net sales                   25.3    23.2   9.0 %    49.7    45.3   9.7 %    94.1
Operating result             0.8     1.1   -27.0     1.1     2.0   -44.1     3.4
                                               %                       %        
% of Net sales             3.3 %   4.9 %           2.3 %   4.5 %           3.6 %
Result for the period,       4.6     0.9   434.8     4.8     1.7   191.1     2.9
 incl discontinued                             %                       %        
 operations                                                                     
% of Net sales            18.3 %   3.7 %           9.7 %   3.7 %           3.0 %
Net cash flow from          -0.8    -0.4  98.3 %    -0.7    -0.4  -268.7     2.8
 operations, incl.                                                     %        
 discontinued operations             
Net cash flow from          -0.6    -0.8   -19.0    -0.2    -0.1   171.6     1.9
 operations, continued                         %                       %        
 operations                                                                     
Change in cash and cash      2.8    -1.2   335.3     2.9    -0.8   466.2     1.3
 equivalents, incl.                            %                       %        
 discontinued operations                                                        
Debt-equity ratio          -41.8   -27.6  51.3 %   -41.8   -27.6  51.3 %   -27.0
 (Gearing), %                  %       %               %       %               %
Earnings per share, EUR                                                         
 (incl. discontinued                                                            
 operations)                                                                    
Basic                       0.07    0.01   434.7    0.08    0.03   191.0    0.05
                                               %                       %        
Diluted                     0.07    0.01   433.3    0.08    0.03   190.0    0.05
                                               %                       %        


JANNE MIELCK, CEO

Growth in net sales continued in the second quarter of 2013. Our net sales grew
9% compared to the second quarter of 2012. Project Personnel, our biggest
business area, increased its net sales by 10% and Consulting by 4%.
Geographically, growth in net sales was strongest in Norway. 

In the second quarter of 2013, the Group's operating result took a turn up
after previous quarters' decline. Our operating result was EUR 0.8 million.
Project Personnel's operating result developed as expected. The operating
result of the Consulting business area continued falling due to the difficult
market situation in Finland and Sweden and the slower than expected development
of biorenewables consulting. We have taken further actions to increase
profitability. 

In the first half of 2013, our net sales grew 10% compared to the first half of
2012. Our biggest business area Project Personnel increased its net sales by
11%, while net sales of the Consulting business area fell by 2%. 

Our operating result in the first half of 2013 was approximately half of our
operating result in the first half of 2012. Profitability was affected by
unexpected expenses in the Project Personnel business area reported in the
first quarter as well as the Consulting business area's challenges. 

The Group's associate SaraRasa Bioindo started renewable fuel production at its
production plant in Indonesia in the second quarter of 2013. The plant, which
produces pellets using waste biomass sourced from local food industry as
feedstock, will have an annual production capacity of approx. 50,000 ton. 

The divestment of Safran Software Solutions AS, previously part of the Group's
Software business area, was closed in the second quarter of 2013. The Group
recognized a gain on disposal of approx. EUR 4 million. 

FUTURE OUTLOOK

General economic insecurity has not affected investment levels among Project
Personnel business area's customers in the Oil and Gas industry and we expect
demand for the business area's services to remain strong in key market areas.
Market demand supports opportunities for growth, but the competitive market
still creates pressure on profitability. 

In the Group's Consulting business area, current market outlook in Norway
remains positive, while market uncertainty in Finland and Sweden affects
customers' investment levels. 

We will continue developing the Group in accordance with our strategy, which
was released on January 25, 2013. 

Guidance for 2013 (released on June 19, 2013):
In 2013, net sales are expected to grow from 2012. In 2013, operating result
excluding extraordinary items is expected to remain below 2012 operating
result, being 1.5 - 3% of net sales. 

This future outlook is based on forecasts approved by Dovre Group's Board of
Directors. 



Helsinki, July 24, 2013

Dovre Group Plc

Board of Directors



For additional information, please contact

DOVRE GROUP PLC
Janne Mielck, CEO
tel. +358-20-436 2000
janne.mielck@dovregroup.com

www.dovregroup.com



Distribution

NASDAQ OMX Helsinki Ltd
Major media
www.dovregroup.com

Attachments:

Dovre Group OVK Q2 2013_EN.pdf