Espoo, Finland, 2017-04-27 07:45 CEST (GLOBE NEWSWIRE) --
Dovre Group Plc Stock Exchange Release April 27, 2017 at 8.45 am
DOVRE GROUP TRADING STATEMENT JANUARY 1 – MARCH 31, 2017
OPERATING RESULT NEGATIVE DUE TO RESTRUCTURING – DEMAND PICKING UP
Dovre Group Plc issues today a trading statement for the first quarter of 2017. The figures presented in this trading statement are not audited. Last year’s corresponding period in parentheses.
Key highlights January – March 2017:
- Net sales EUR 17.3 (25.0) million – decline 31 %
- Project Personnel: net sales EUR 15.5 (23.2) million – decline 33 %
- Consulting: net sales EUR 1.8 (1.7) million – increase 2 %
- Operating result EUR -0.3 (0.0) million incl. EUR 0.3 million of restructuring costs
- Net cash flow from operating activities EUR -0.4 (0.2) million
- Four new frame agreements secured
Outlook for 2017 (unchanged): Operating result is expected to improve compared to 2016.
PATRICK VON ESSEN, CEO:
“The Project Personnel market is improving. There are now more major projects in the pipeline in oil & gas, energy, infrastructure and industry than a year ago.
The demand for our services is picking up, albeit from a low level. Our consultant headcount increased somewhat each month in Q1. We estimate that the gradual increase of demand and headcount will continue this year. The prices and margins are still a challenge. In Q1 roughly 60 % of our volume was upstream oil & gas, and 40 % energy, infra and industry.
In the Project Personnel business, our focus is on sales and cost efficiency. During Q1 we secured four new frame agreements; 2 in oil & gas and one each in energy and infrastructure. The restructuring done during Q1 will lower our fixed cost further starting Q2. We will continue to improve our cost efficiency this year.
The Consulting business delivered an impressive performance in Q1, with both Norway and Finland clearly exceeding the operating profit levels of the previous year.”
OUTLOOK FOR 2017
The market is still affected by several uncertainties, including general economic development, oil price, and political instability. Our main markets are in politically and economically stable countries.
In the Project Personnel business area, market outlook has improved slightly. However, there are no guarantees that the market is on a growth path. Nevertheless, due to new frame agreements and cost savings that have already been implemented we expect operating result to improve from 2016.
In the Consulting business area, market outlook remains unchanged.
We expect the Group’s operating result to improve compared to 2016.
NET SALES
In Q1, Dovre Group’s net sales were EUR 17.3 (25.0) million. Project Personnel accounted for 90 (93) % and Consulting for 10 (7) % of the Group’s net sales. Project Personnel’s net sales were EUR 15.5 (23.2) million, while net sales for Consulting totalled EUR 1.8 (1.7) million. The change in net sales compared to Q1/2016 would have been about -35 % in constant currencies.
|
Net sales by reporting segment EUR million |
1-3 2017 |
1-3 2016 |
Change % |
1-12 2016 |
| Project Personnel | 15.5 | 23.2 | -33.3 | 76.9 |
| Consulting | 1.8 | 1.7 | 1.7 | 6.9 |
| Group total | 17.3 | 25.0 | -30.9 | 83.8 |
PROFITABILITY
In Q1, the Group’s operating result was EUR -0.3 (0.0) million. Project Personnel’s operating result was EUR -0.1 (0.3) million. Consulting business area’s operating result was EUR 0.3 (0.2) million. The operating result of the Group’s Other functions was EUR -0.3 (-0.4) million. In Q1/2017, the Group reported EUR 0.3 million restructuring costs in Project Personnel business area.
|
Operating result EUR million |
1-3 2017 |
1-3 2016 |
Change % |
1-12 2016 |
| Project Personnel | -0.1 | 0.3 | -149.8 | 0.6 |
| Consulting | 0.3 | 0.2 | 59.5 | 1.0 |
| Other functions | -0.3 | -0.4 | 14.8 | -1.2 |
| Unallocated | -0.1 | -0.1 | 22.3 | -0.3 |
| Group total | -0.3 | 0.0 | -699.1 | 0.0 |
PERSONNEL
On March 31, 2017, Dovre Group employed 464 (617) people, 422 (570) of which were employed by Project Personnel, 37 (41) by Consulting and 5 (6) by Other functions.
CASH POSITION
On March 31, 2017, the Group’s net debt was EUR -4.3 (-4.2) million. The Group’s cash and cash equivalents totalled EUR 7.4 (10.2) million. The Group’s interest-bearing liabilities were EUR 3.0 (6.0) million, a total of EUR 1.4 (3.9) million of which were current and a total of EUR 1.7 (2.1) million non-current. In Q1, net cash flow from operating activities was EUR -0.4 (0.2) million, which includes EUR 0.0 (0.4) million change in working capital.
CHANGES IN GROUP EXECUTIVE TEAM
During the first quarter Frank Ween, a member of the Group Executive Team, resigned and Ole Olsen, a member of the Group Executive Team, was nominated as a member of the Board of Directors of Dovre Group Plc. As of March 31, 2017, Dovre Group’s Group Executive Team consists of Patrick von Essen (CEO), Heidi Karlsson (CFO), Arve Jensen (President, Project Personnel Norway) and Stein Berntsen (President, Consulting).
Espoo, April 26, 2017
Dovre Group Plc
Board of Directors
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
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 about 500 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Company web site www.dovregroup.com.
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