Helsinki, Finland, 2014-10-23 07:45 CEST (GLOBE NEWSWIRE) --
Dovre Group Plc Interim report October 23, 2014 at 8:45 a.m.
DOVRE GROUP INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2014
Q3: Profitability improving, operating result not yet satisfactory
July - September 2014
- Net sales EUR 24.7 (24.1) million – growth 2%, in local currencies 6%
- Project Personnel: net sales EUR 22.8 (22.2) million – growth 3%
- Consulting: net sales EUR 1.8 (1.9) million – change -3%
- Operating result EUR 0.3 (0.8) million, which is 1.1 (3.2) % of net sales
- Result EUR 0.1 (0.3) million
- Earnings per share EUR 0.00 (0.01)
- Net cash flow from operating activities EUR 0.1 (1.2) million
January - September 2014
- Net sales EUR 73.5 (73.7) million – change -0.4%, in local currencies 7%
- Project Personnel: net sales EUR 68.0 (67.4) million – growth 1%
- Consulting: net sales EUR 5.5 (6.3) million – change -13%
- Operating result EUR 0.6 (1.9) million, which is 0.8 (2.6) % of net sales
- Result EUR -0.1 (0.8) million
- Earnings per share EUR 0.00 (0.01)
- Net cash flow from operating activities EUR -1.1 (0.9) million
Guidance for 2014 (unchanged): In 2014, Dovre Group’s net sales will be EUR 95-105 million and operating result EUR 1.0-2.0 million.
The interim report is unaudited. Last year’s corresponding period in parentheses.
KEY FIGURES
|
EUR million |
7-9 2014 |
7-9 2013 |
Change % |
1-9 2014 |
1-9 2013 |
Change % |
1-12 2013 |
| Net sales | 24.7 | 24.1 | 2.3 | 73.5 | 73.7 | -0.4 | 98.5 |
| Operating result | 0.3 | 0.8 | -63.8 | 0.6 | 1.9 | -68.1 | 2.4 |
| % of net sales | 1.1 % | 3.2 % | 0.8 % | 2.6 % | 2.4 % | ||
| Result | 0.1 | 0.3 | -67.8 | -0.1 | 0.8 | -107.7 | 1.2 |
| % of net sales | 0.4 % | 1.4 % | -0.1 % | 1.1 % | 1.2 % | ||
| Net cash flow from operations | 0.1 | 1.2 | -88.7 | -1.1 | 0.9 | -219.6 | 3.7 |
| Change in cash and cash equivalents | 7.7 | 11.6 | -33.5 | 7.7 | 11.6 | -33.5 | 13.7 |
| Debt-equity ratio (Gearing), % | -30.0 % | -40.5 % | -26.0 | -30.0 % | -40.5 % | -26.0 | -50.0 % |
| Earnings per share, EUR: | |||||||
| Basic | 0.00 | 0.01 | -67.8 | 0.00 | 0.01 | -107.7 | 0.02 |
| Diluted | 0.00 | 0.01 | -68.0 | 0.00 | 0.01 | -107.7 | 0.02 |
PATRICK VON ESSEN, CEO:
The Group’s net sales trended up during the third quarter, and in September we recorded all time high net sales. Our operating profit, burdened by lower sales margins than last year, increased investments in future growth as well as non-recurring items, was not satisfactory. As a result we have cut our rental and outsourcing costs as well as personnel expenses. These measures will reach their full effect starting the beginning of 2015. At the same time, we continue investing in future growth.
In Project Personnel, we are now starting to see positive results from our strengthened sales team. During the third quarter, we signed two important frame agreements, one with Aramco Overseas Company and one with a Fortune 500 oil and gas company with operations in Canada. Dovre Club is growing as expected, providing access to a growing pool of qualified international project professionals.
The entire oil and gas sector in Norway, our largest market, has dipped significantly compared to last year. Despite that, we have been able to grow and gain market share there, albeit at lower margins than last year. Our Canadian operations continue to perform well, but profits are lower than in the stellar year 2013. The United States have improved consistently throughout the year, and business in the Middle East is growing rapidly. Russia is performing solidly and profitably. Following the postponement of startup of new major projects in Australia, we have reduced our presence and costs to a minimum.
In Consulting, demand has increased in the second half of 2014 as predicted in our Q2 interim report. Profitability has improved, and the operating profit in Q3 improved compared to last year.
After a slow start to the year, our Consulting in Norway has picked up considerably, and has a strong order stock for the rest of the year. Finland and Sweden have secured important orders in Q3 and have improved their order stock for the rest of 2014.
The restructuring of our associated companies, SaraRasa Biomass and Bioindo, into a single entity, SaraRasa Group, is in process. The company’s pellet plant in Indonesia has been in commercial operation throughout Q3. Additional investments, which will increase production and decrease production costs of the plant, are ongoing. In addition to the existing plant, SaraRasa Group has plans for additional pellet plant projects. At the moment, SaraRasa Group is seeking new investors to develop these projects.
In July, the Board of Directors nominated the new, strengthened Group Executive Team. During Q3, the Executive Team revisited the Group strategy. The revised strategy was released on October 23, 2014. In accordance with the revised strategy, we will focus on offering project advisory services and project personnel to owners of large projects. We will continue to expand our client base beyond oil and gas.
FUTURE OUTLOOK
In the face of many global uncertainties, our clients are increasingly cautious about investments. We expect that global demand will pick up in 2015 at the earliest. Our main markets are, however, in politically stable countries with strong underlying economies. With strong focus on sales and having already signed three major frame agreements since June, we are well placed for continued growth in the Project Personnel business area. In the Consulting business area, we have a strong order stock, which includes clients from both the public and the private sectors.
We expect our fixed costs to decrease in Q4/2014 and further in Q1/2015. However, we will maintain our increased focus on sales and continue investing in future growth.
The Group’s guidance for 2014, released on July 21, 2014, remains unchanged: In 2014, Dovre Group’s net sales will be EUR 95-105 million and operating result EUR 1.0-2.0 million.
EVENTS AFTER THE PERIOD
In its meeting on October 22, 2014, the Board of Directors of Dovre Group Plc has approved the company’s revised strategy and long-term goals for 2015-2019. The revised strategy has been released as a stock exchange bulletin on October 23, 2014. In accordance with the revised strategy, the company will focus on providing project personnel and project advisory services to owners of large projects.
In the revised strategy, the company targets EUR 200 million in net sales and EUR 10 million in operating result in 2019.
INTERIM REPORT PRESENTATION
Dovre Group organizes a briefing on the Q3/2014 interim report and the Group’s revised strategy on October 23, 2014 at 10:00 a.m., at Unioninkatu 20-22, Helsinki.
A video recording of the presentation will be available on the company’s website www.dovregroup.com on the afternoon of October 23, 2014. The presentation is in English.
Helsinki, October 22, 2014
Dovre Group Plc
BOARD OF DIRECTORS
For additional information, please contact:
Dovre Group Plc
Patrick von Essen, CEO
Heidi Karlsson, CFO
tel. +358-20-436 2000
email: firstname.surname@dovregroup.com
www.dovregroup.com
Dovre Group’s Financial Reporting in 2015
Dovre Group releases its financial statements bulletin for January 1 – December 31, 2014 on Thursday, February 12, 2015. An electronic version of the Annual Report 2014, including the financial statements, will be published during week 10 in 2015.
Dovre Group releases its 2015 interim reports as follows:
- Interim report for January 1 – March 31, 2015 on Wednesday, April 29, 2015
- Interim report for January 1 – June 30, 2015 on Thursday, July 23, 2015
- Interim report for January 1 – September 30, 2015 on Thursday, October 22, 2015.
The Annual General Meeting is provisionally scheduled for Wednesday, March 25, 2015. The company’s Board of Directors will give a separate notice of the Annual General Meeting later.
Distribution
NASDAQ OMX Helsinki Ltd
Major media
www.dovregroup.com
