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

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

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