2018-10-25 07:45:00 CEST

2018-10-25 07:45:00 CEST


REGULATED INFORMATION

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Dovre Group Oyj - Interim report (Q1 and Q3)

Dovre Group Trading Statement January 1 – September 30, 2018


Dovre Group Plc                        Stock exchange release                        October 25, 2018 at 8.45 a.m.

DOVRE GROUP TRADING STATEMENT JANUARY 1 – SEPTEMBER 30, 2018

Q3: SALES GROWTH AND IMPROVED OPERATING PROFIT

Dovre Group Plc issues today a trading statement for the nine months ended on September 30, 2018. The figures presented in this trading statement are not audited. Last year’s corresponding period in parentheses.

July – September 2018
      ·Net sales EUR 15.5 (14.7) million – increase 6%
      ·Project Personnel: net sales EUR 14.3 (13.6) million – increase 5%
      ·Consulting: net sales EUR 1.3 (1.1) million – increase 15%
      ·Operating result EUR 0.2 (0.0) million
      ·Net cash flow from operating activities EUR 0.0 (-2.2) million

January – September 2018
      ·Net sales EUR 48.3 (47.8) million – increase 1%
      ·Project Personnel: net sales EUR 44.1 (43.5) million – increase 1%
      ·Consulting: net sales EUR 4.2 (4.3) million – decline 3%
      ·Operating result EUR 0.3 (-0.2) million, result in 2017 included EUR -0.3 million of restructuring costs
      ·Net cash flow from operating activities EUR -0.7 (-3.2) million
            
Outlook for 2018 (unchanged): We expect the Group’s net sales and operating result to improve compared to 2017.


PATRICK VON ESSEN, CEO:

“The sentiment is improving and the investment activity is increasing in all our markets. The demand for our services is growing. Volumes, prices and margins are inching in the right direction, while our fixed costs continue to decrease.

Q3 was our second consecutive growth quarter, and our sixth consecutive quarter with positive operating result. We recorded the highest Q3 operating profit since 2015.

Project personnel: In Q3, net sales increased only modestly, but operating result improved significantly compared to previous year. We are not yet satisfied with the operating result, but we are starting to see the positive effects of our scalable business model. We have secured a strong order stock for Q4. We expect a strong last quarter of the year.

Consulting: After a soft H1, our sales increased year-on-year in Q3. The operating result was still lower than the previous year. However, our order stock has improved both in Norway and in Finland. We have strengthened our consulting organization giving us increased capacity. We expect sales and operating results to improve in Q4.

This is my last trading statement as the CEO of Dovre Group. I wish to thank all Dovre Clients for your trust, loyalty and valuable business. Also, my warm and humble thanks to all our consultants out there in the frontline, ensuring our Clients’ project success every day. To each member of our wonderful staff around the world: You are the best – I will miss you greatly! Finally, to the Board and to my successor Arve Jensen: Thank you for your support throughout the last five years, it has been an absolute honour and a privilege working with you.”


OUTLOOK FOR 2018 (UNCHANGED)

The market is still affected by several uncertainties, including general economic development, oil price, and political instability. Our main markets are, however, in politically and economically stable countries.

In the Project Personnel business area, demand has improved as a consequence of increased oil price causing increased investment levels in the industry.Thanks to a strong portfolio of frame agreements, cost savings already implemented, as well as improving demand, we expect our operating result to improve from 2017.

In the Consulting business area, market outlook remains unchanged.

We expect the Group’s net sales and operating result to improve compared to 2017.


NET SALES

In Q3, Dovre Group’s net sales increased by 5.7% and were EUR 15.5 (14.7) million. Project Personnel accounted for 92 (93) % and Consulting for 7 (7) % of the Group’s net sales. Project Personnel’s net sales were EUR 14.3 (13.6) million, while net sales for Consulting totalled EUR 1.3 (1.1) million.

During the period under review Dovre Group’s net sales increased by 1.0% and were EUR 48.3 (47.8) million. Project Personnel accounted for 91 (91) % and Consulting for 9 (9) % of the Group’s net sales. Project Personnel’s net sales were EUR 44.1 (43.5) million, while net sales for Consulting totalled EUR 4.2 (4.3) million.

Fluctuations in foreign currency exchange rates impacted the Group’s revenues somewhat. The increase in net sales from the comparable period would have been 8 % in Q3 and 5% in the period under review if translated with 2017 exchange rates.

Net sales by reporting segment7-97-9Change1-91-9Change1-12
EUR million20182017%20182017%2017
Project Personnel14.313.65.044.143.51.457.1
Consulting1.31.114.64.24.3-3.05.6
Group total 15.514.75.748.347.81.062.7


OPERATING RESULT

In Q3, the Group’s operating result was EUR 0.2 (0.0) million. Project Personnel’s operating result was EUR 0.4 (0.3) million. Consulting’s operating result was EUR 0.0 (0.1) million. The operating result of the Group’s Other functions was EUR -0.2 (-0.3) million.

During the period under review, the Group’s operating result was EUR 0.3 (-0.2) million. Project Personnel’s operating result was EUR 1.1 (0.3) million. Consulting’s operating result was EUR 0.3 (0.6) million. The operating result of the Group’s Other functions was EUR -0.9 (-0.9) million. In Q1/2017, the Group reported EUR 0.3 million restructuring costs in Project Personnel business area.

Operating result7-97-9Change1-91-9Change1-12
Milj. euroa20182017%20182017%2017
Project Personnel0.40.345.31.10.3220.90.8
Consulting0.00.1-60.50.30.6-49.60.7
Other functions-0.2-0.321.1-0.9-0.9-2.0-1.2
Unallocated *)-0.1-0.19.2-0.2-0.214.1-0.3
Group total0.20.0616.20.3-0.2243.10.1

*) Unallocated expenses include customer agreements and relations and their amortization, as well as share-based compensation recognized as expense in the income statement.


PERSONNEL

On September 30, 2018, Dovre Group employed 481 (439) people, of which 439 (400) were employed by Project Personnel, 38 (35) by Consulting and 4 (4) by Other functions.


CASH POSITION

On September 30, 2018, the Group’s net debt was EUR -0.0 (-0.2) million. The Group’s cash and cash equivalents totaled EUR 3.3 (3.2) million. The Group’s interest-bearing liabilities were EUR 3.2 (3.0) million,  of which EUR 2.6 (1.8) million were current and EUR 0.6 (1.2) million non-current. In Q3, net cash flow from operating activities was EUR 0.0 (-2.2) million, which includes EUR -0.3 (-2.3) million change in working capital.


JOINT VENTURE SARARASA

The good development seen in our joint venture SaraRasa Bioindo Pte Ltd during the first six months continued in Q3 and we expect SaraRasa to have a positive impact on the 2018 net profit.


In Espoo, October 25, 2018

Dovre Group Plc
Board of Directors

For additional information, please contact:

Dovre Group Plc
Patrick von Essen, CEO
(patrick.essen@dovregroup.com)

Mari Paski, CFO
mari.paski@dovregroup.com

tel. +358 20 436 2000
www.dovregroup.com

Dovre Group is a global provider of project management services. Dovre Group has two business areas: Project Personnel and Consulting. Dovre Group has offices in Canada, Finland, Norway, Russia, Singapore, the UAE and the US, and employs more than 500 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Company website www.dovregroup.com.

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www.dovregroup.com