Espoo, Finland, 2015-08-13 07:45 CEST (GLOBE NEWSWIRE) --
Dovre Group Plc Interim report August 13, 2015 at 8.45 a.m.
DOVRE GROUP INTERIM REPORT JANUARY 1 – JUNE 30, 2015
Q2: Dovre Group’s position strengthened by NPC merger in a challenging market
The merger between Dovre Group and Norwegian Petroleum Consulting Group AS (NPC) was completed on May 28, 2015. NPC’s financials are reported as part of Dovre Group’s Project Personnel business area as of May 28, 2015.
The interim report is unaudited. In parentheses last year’s corresponding period excluding NPC.
April – June 2015
- Net sales EUR 28.7 (24.1) million – growth 19%
- Net sales excluding NPC’s share decreased by 1% – in constant currencies -6%
- Project Personnel: net sales EUR 26.9 (22.2) million – growth 21%
- Consulting: net sales EUR 1.9 (1.9) million – change -2%
- EBITDA excluding non-recurring items EUR 0.5 (0.2) million, which is 1.6 (1.1) % of net sales
- Non-recurring items EUR -0.8 (-0.1) million in total, EUR -0.2 million of which due to external advisory services and EUR -0.6 million due to restructuring costs
- Result for the period EUR -0.8 (-0.3) million
- Earnings per share EUR -0.01 (0.00)
- Net cash flow from operating activities EUR -3.1 (0.1) million
January – June 2015
- Net sales EUR 54.9 (48.8) million – growth 13%
- Net sales excluding NPC’s share increased by 2% – in constant currencies -2%
- Project Personnel: net sales EUR 51.0 (45.2) million – growth 13%
- Consulting: net sales EUR 3.9 (3.7) million – growth 8%
- EBITDA excluding non-recurring items EUR 0.8 (0.7) million, which is 1.4 (1.5) % of net sales
- Non-recurring items EUR -1.1 (-0.2) million in total, EUR -0.5 million of which due to external advisory services and EUR -0.6 million due to restructuring costs
- Result for the period EUR -0.7 (-0.2) million
- Earnings per share EUR -0.01 (0.00)
- Net cash flow from operating activities EUR -3.0 (-1.2) million
Guidance for 2015 (unchanged): Net sales are expected to be EUR 120-130 million and the EBITDA excluding non-recurring items EUR 1.5-2.5 million.
PATRICK VON ESSEN, CEO:
“The market situation remains challenging. Our clients in the oil and gas industry have been cutting investments, costs and the number of service providers. The demand of these clients has clearly reduced. However, we have managed to increase our market share thanks to strong focus on sales. As a result of the merger with NPC, we have achieved market leadership in Norway and gained a significant presence in Asia. Our clients have welcomed the merger news. The merger with NPC has improved our competitiveness in the global market.
Our comparable net sales in Q2 were down from the previous year. The decline was mainly caused by the market situation in Norway. Our comparable profitability improved in both business areas compared to Q2/2014. The Group’s operating result was negative due to non-recurring costs related to the merger.
Almost all non-recurring costs related to the NPC merger have been booked in Q1 and Q2. In H2 there will be non-recurring costs of approx. EUR 0.1 million mainly due to the prospectus needed for listing the new shares issued to NPC’s sellers.
In a challenging market environment, we continue adapting by cutting costs. In April, we announced measures that will lead to annual cost savings of approx. EUR 0.3 million in Finland starting latest from the beginning of next year. In addition, the integration with NPC will result in annual cost savings of approx. EUR 1.0 million. The savings consist mainly of personnel costs and office rent costs in Norway. These cost savings will take full effect latest from the beginning of 2016.
We actively seek new market segments outside the oil and gas industry, with large projects in energy, mining and industry as our target segments. This change will not take place quickly, but we have already achieved significant orders in hydropower and mining projects. In the longer term, we also seek growth through new M&A opportunities
In accordance with our focused growth strategy, released in October 2014, our target is to have net sales of EUR 200 million and an operating result exceeding EUR 10 million in 2019. Merger with NPC takes us significantly closer to our strategic net sales target. We will improve our profitability by strong sales activities, cutting back on less profitable clients, utilizing economies of scale, and improving the efficiency of our operations.”
FUTURE OUTLOOK AND GUIDANCE 2015
The market is still affected by several uncertainties, including general economic trends, oil price, and political instabilities. Our main markets are, however, in politically and economically stable countries.
Our clients in the Project Personnel business area are still cautious about investments and we do not expect demand to pick up in 2015. Market situation in Norway remains challenging. A major ongoing project in Canada looks to be completed considerably earlier than anticipated, thus potentially affecting our net sales in the second half of the year. In Asia, strong focus on sales brings growth. All in all, market outlook for the second half of 2015 has weakened since the beginning of the year.
In the Consulting business area, we have a strong order stock, which includes clients from both the public and the private sectors.
Markets are consolidating and we expect this trend to continue. We expect our relative fixed costs to decrease each year going forward.
Guidance for 2015 (unchanged): Net sales are expected to be EUR 120-130 million and the EBITDA excluding non-recurring items EUR 1.5-2.5 million.
KEY FIGURES
|
EUR million |
4-6 2015 |
4-6 2014 |
Change % |
1-6 2015 |
1-6 2014 |
Change % |
1-12 2014 |
| Net sales | 28.7 | 24.1 | 19.1 | 54.9 | 48.8 | 12.5 | 98.9 |
| EBITDA excl. non-recurring items | 0.5 | 0.2 | 89.2 | 0.8 | 0.7 | 5.5 | 2.1 |
| % of net sales | 1.6 % | 1.1 % | 1.4 % | 1.5 % | 2.1 % | ||
| Non-recurring items *) | -0.8 | -0.1 | -505.2 | -1.1 | -0.2 | -525.0 | -0.5 |
| Operating result (EBIT) | -0.5 | 0.0 | -4 506.8 | -0.5 | 0.3 | -262.5 | 1.2 |
| % of net sales | -1.6 % | 0.0 % | -1.0 % | 0.7 % | 1.2 % | ||
| Result | -0.8 | -0.3 | -187.8 | -0.7 | -0.2 | -307.2 | 0.3 |
| % of net sales | -2.6 % | -1.1 % | -1.3 % | -0.3 % | 0.3 % | ||
| Net cash flow from operations | -3.1 | 0.1 | -5 725.5 | -3.0 | -1.2 | -145.2 | 1.9 |
| Cash and cash equivalents | 8.7 | 7.6 | 14.2 | 8.7 | 7.6 | 14.2 | 10.3 |
| Debt-equity ratio (Gearing), % | -17.3 % | -31.4 % | -44.9 | -17.3 % | -31.4 % | -44.9 | -42.2 % |
| Earnings per share, EUR: | |||||||
| Undiluted | -0.01 | 0.00 | -139.9 | -0.01 | 0.00 | -269.2 | 0.00 |
| Diluted | -0.01 | 0.00 | -140.4 | -0.01 | 0.00 | -270.4 | 0.00 |
*) In 2015, non-recurring items in Q2 and the period under review consist of external advisory services and restructuring related to the merger with NPC. In 2014, non-recurring items in Q2 and the period under review consisted of costs related to the Group’s withdrawal from biorenewables consulting and changes in personnel.
BRIEFING FOR PRESS AND FINANCIAL ANALYSTS
Dovre Group holds a briefing on the Q2/2015 interim report on Thursday, August 13, 2015 at 10:00 a.m. at Event Arena Bank, Unioninkatu 20, Helsinki.
The CEO’s presentation is available on the company’s website www.dovregroup.com after the briefing.
This is a summary of Dovre Group Plc’s interim report Jan. 1 – June 30, 2015. The report is attached to this bulletin and is also available online at www.dovregroup.com -> Investors.
For additional information, please contact:
Dovre Group Plc
Patrick von Essen, CEO
(patrick.essen@dovregroup.com)
Heidi Karlsson, CFO
(heidi.karlsson@dovregroup.com)
tel. +358-20-436 2000
www.dovregroup.com
Distribution
NASDAQ OMX Helsinki Ltd
Major media
www.dovregroup.com
