Dovre Group Oyj - Financial Statement Release

DOVRE GROUP FINANCIAL STATEMENTS (IFRS) JANUARY 1 – DECEMBER 31, 2011

Espoo, Finland, 2012-02-15 07:45 CET (GLOBE NEWSWIRE) -- 
Dovre Group Plc                          Financial Statements                  
        February 15, 2012 at 08:45 a.m. 

DOVRE GROUP FINANCIAL STATEMENTS (IFRS) JANUARY 1 - DECEMBER 31, 2011

Dovre Group's operating result continued improving in 2011

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

SUMMARY

October - December 2011

  -- Net sales EUR 18.8 (18.6) million - growth 1.5%
  -- Project Personnel: net sales EUR 15.8 (16.0) million - change -1.2%
  -- Consulting: net sales EUR 2.1 (1.8) million - growth 16.1%
  -- Software: net sales EUR 1.2 (0.9) million - growth 41.9%
  -- Operating result EUR 0.9 (0.2) million - increase EUR 0.7 million
  -- Comparable operating result EUR 0.9 (0.5) million - increase EUR 0.4
     million
  -- Comparable operating result 4.9% (3.0%) of net sales
  -- Result for the period EUR 0.7 (0.1) million - increase EUR 0.6 million
  -- Earnings per share EUR 0.01 (0.00)
  -- Net cash flow from operating activities EUR 1.7 (1.5) million

January - December 2011

  -- Net sales EUR 72.5 (70.8) million - growth 2.4%
  -- Project Personnel: net sales EUR 61.9 (61.4) million - growth 0.8%
  -- Consulting: net sales EUR 6.9 (6.1) million - growth 13.3%
  -- Software: net sales EUR 4.1 (3.5) million - growth 15.5%
  -- Operating result EUR 4.9 (3.4) million - increase EUR 1.5 million
  -- Comparable operating result EUR 3.2 (2.7) million - increase EUR 0.5
     million
  -- Comparable operating result 4.5% (3.9%) of net sales
  -- Result for the period EUR 3.2 (2.3) million - increase EUR 0.9 million
  -- Earnings per share EUR 0.05 (0.04)
  -- Net cash flow from operating activities EUR 2.0 (3.4) million
  -- Board of Directors proposes to the AGM a dividend of EUR 0.01 per share

In 2012, net sales are expected to grow from 2011. Comparable operating result
is estimated to remain at the same level as in 2011. 

The financial information presented in the financial statements is based on the
company's audited financial statements. The auditor's report was issued on
February 14, 2012. 

KEY FIGURES

                                 10-12   10-12  Change    1-12    1-12  Change
(EUR million)                     2011    2010       %    2011    2010       %
Net sales                         18.8    18.6     1.5    72.5    70.8     2.4
Operating result                   0.9     0.2   327.9     4.9     3.4    45.5
% of Net sales                    4.9%    1.2%            6.8%    4.8%        
Result for the period              0.7     0.1   647.8     3.2     2.3    37.6
% of Net sales                    3.9%    0.5%            4.4%    3.3%        
Net cash flow from operations      1.7     1.5    13.3     2.0     3.4   -41.2
Debt-equity ratio (Gearing), %  -34.6%  -27.2%    27.2  -34.6%  -27.2%    27.2
Earnings per share. EUR                                                       
Basic                             0.01    0.00            0.05    0.04        
Diluted                           0.01    0.00            0.05    0.04        



JANNE MIELCK, CEO

Overall, Dovre Group performed well in 2011. Our operating result continued
improving also in the fourth quarter. However, our net sales grew less than
expected. 

In the fourth quarter of 2011, the Group's net sales increased by approximately
2% compared to 2010. The Group's Project Personnel division did well in Norway,
but did not manage to increase the number of consultants in North America and
Asia. Both our Consulting and Software divisions significantly increased their
net sales in the fourth quarter of 2011, by 16% and 42% respectively. 

In the fourth quarter, the Group's operating result was EUR 0.9 million. The
operating result increased by EUR 0.7 million and the comparable operating
result by EUR 0.4 million compared to the fourth quarter in 2010. Both
Consulting and Software divisions improved their operating result. 

During the financial year, the Group's net sales grew by over 2% compared to
2010. All business divisions were ahead of their net sales compared to 2010. In
North America, the end of two major projects caused a dip in overall outcome.
Our net sales grew in the Asian and European markets. 

The Group's operating result was EUR 4.9 million and comparable operating
result EUR 3.2 million in 2011. The release of the liability from the defined
benefit pension plan in Norway improved the operating result by EUR 1.7 million
in the first quarter of 2011. The Group's comparable operating result increased
by EUR 0.5 million from 2010. 

In the fourth quarter of 2011, the Group's net cash flow from operating
activities was EUR 1.7 million. At the end of the financial year, the Group's
cash and cash equivalents were EUR 7.9 million, which was EUR 2.4 million more
than in 2010. 

The positive development of the Group's operating result and cash and cash
equivalents in 2011 provides a good basis for investing in further growth in
2012. 



FUTURE OUTLOOK

General economic insecurity has not affected investment levels in the Oil and
Gas industry, including Project Personnel division's major customers. Thus, we
expect demand for the division's services to remain stable in key market areas.
In 2012, we expect to gain new customers in the Middle East. 

Current market outlook in the Nordic countries, an important market for the
Group's Consulting and Software divisions, is positive. However, economic
instability in Europe may affect customers' investment levels in 2012. 

We will continue developing the Group in accordance with our strategy and
long-term goals. 

In 2012, net sales are expected to grow from 2011. Comparable operating result
is estimated to remain at the same level as in 2011. 

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



EVENTS AFTER THE FINANCIAL PERIOD

The Group is currently investigating the possibility of expanding the Group's
business in the renewable energy sector, including also the adoption of new
business models. We also aim to work closer together with project developers in
the renewable energy sector. 

In its meeting on February 14, 2012, Dovre Group's Board of Directors approved
the company's dividend policy. The company seeks growth and follows a
conservative dividend policy. The company pays dividend to its shareholders
based on the company's financial performance. The needs to finance the
company's growth will be considered when deciding on dividend pay-out. 



BOARD OF DIRECTORS' PROPOSAL FOR THE USE OF PROFITS

The parent company's distributable funds are EUR 4,423,430.82, including EUR
4,077,850.82 of profit for the financial year. 

The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.01 per share to be paid, corresponding to EUR 628,957.51 based on the
total number of shares (62,895,751), and that the remaining profit for the
financial year is entered into shareholder's equity. 

The Company having decided to dissolve the unrestricted equity fund and to
reduce the share capital of the Company in order to set off losses from prior
financial years at the Annual General Meeting held on March 17, 2011, the
payment of the dividend is conditional on the creditor protection procedure in
accordance with Chapter 14, Sections 3-5 of the Finnish Companies Act. The
procedure is estimated to take four (4) months. 

The Board of Directors further proposes that the dividend, conditional on the
creditor protection procedure as noted in the previous paragraph, is paid to a
shareholder who on the record date March 20, 2012, is registered as a
shareholder in the Company's shareholders' register maintained by Euroclear
Finland Ltd. The dividend is paid on August 15, 2012. 

No significant changes have occurred in the company's financial position after
the end of the financial year. The company's liquidity is good, and the
proposed distribution of dividend poses no risk on the company's financial
standing. 



Summary of financial statements and notes to the financial statements are
presented in a separate document, which is attached to this stock exchnage
bulletin. The release of financial statements can also be found on Dovre
Group's website, www.dovregroup.com. 



Espoo, February 14, 2012



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

Heidi Karlsson, SVP, Corporate Functions
tel. +358-20-436 2000
heidi.karlsson@dovregroup.com

www.dovregroup.com



Dovre Group's Financial Reporting in 2012

Dovre Group Plc's Annual Report 2011, including the Group's financial
statements for January 1 - December 31, 2011, will be available on the company
website by March 2, 2012. 

Dovre Group releases its 2012 interim reports as follows:

  -- Interim report for January 1 - March 31, 2012 on Thursday, April 26, 2012
  -- Interim report for January 1 - June 30, 2012 on Thursday, July 26, 2012
  -- Interim report for January 1 - September 30, 2012 on Thursday, October 25,
     2012.

Annual General Meeting

Dovre Group Plc's Annual General Meeting has been planned to be held at
Suomalainen Klubi in Helsinki (address: Kansakoulukuja 3) on Thursday, March
15, 2012, starting at 3:30pm. 

Distribution

NASDAQ OMX Helsinki Ltd
Major media
www.dovregroup.com

Attachments:

Dovre Group Financial Statements 2011.pdf