Dovre Group Plc                             Financial Statement Release                        Feb 21, 2019 at 9.00 a.m.

DOVRE GROUP’S FINANCIAL STATEMENT RELEASE JANUARY 1– DECEMBER 31, 2018

ANNUAL NET SALES GREW AND OPERATING RESULT IMPROVED

Last year’s corresponding period in parentheses.

July–December 2018
      ·Net sales at EUR 32.7 (29.6) million – increase 10.6%
      ·Project Personnel: net sales EUR 29.8 (27.2) million – increase 9.8%
      ·Consulting: net sales EUR 2.9 (2.4) million – increase 20.0%
      ·Operating result improved to EUR 0.4 (0.3) million. Q4 operating result EUR 0.3 (0.2) million.
      ·Result before tax EUR 1.0 (0.1) million, incl. EUR 0.6 (-0.0) million of finance items
      ·Result for the period EUR 0.9 (-0.1) million
      ·Earnings per share EUR 0.009 (-0.005)
      ·Net cash flow from operating activities EUR 1.8 (0.1) million

January–December 2018
      ·Net sales grew to EUR 65.5 (62.7) million – increase 4.4%
      ·Project Personnel: net sales EUR 59.7 (57.1) million – increase 4.5%
      ·Consulting: net sales EUR 5.8 (5.6) million – increase 3.5%
      ·Operating result improved to EUR 0.5 (0.1) million
      ·Result before tax EUR 1.1 (-0.4), incl. EUR 0.6 (-0.2) million of finance items.
      ·Result for the period EUR 0.8 (-0.5) million
      ·Earnings per share EUR 0.008 (-0.005)
      ·Net cash flow from operating activities was EUR 1.1 (-0.9) million
      ·Board of Directors proposes to AGM a dividend of EUR 0.01 (0.01) per share.

ARVE JENSEN, CEO:

“Dovre Group’s H2 figures confirm the positive trend from H1, and both Q4 and H2 show improved sales and profit compared to the previous year, in line with our expectations. The order stock has also continued to grow. The operating result is still not satisfying, but the positive effect of reduced overhead costs combined with increased sales has started to materialize. The key for Dovre Group moving forward is to ensure that we can continue the growth.

Project personnel: Net sales in H2 developed positively compared to 2017 mainly due to the Norwegian entity.The market has really turned positive in Norway. The other units have also seen signs of a positive development, but not yet the growth seen in Norway. The EMEA outside Norway has had high activity and continues the growth. Our services in US and Canada were reorganised in H2 in order to lower our cost base and enable further synergies in our organization, clients and consultants. We now have one business unit serving customers in North America, managed by Dean Sullivan. Our APAC unit ended a major short term contract at end of H1, which caused a headcount and sales drop in 2018 and succeeded in H2 to secure a stronger backlog for the beginning of 2019.

Consulting: The net sales in H2 were ahead of 2017. The profitability decreased compared to the previous year, but remains on a very respectable level. The reason for a lower profit is a short term lower activity level in Norway.

Dovre Group was awarded a new frame agreement after the year end: In Norway, we signed in January 2019 a frame agreement with Nye Veier for supply of strategic consulting services and operative project personnel in the areas of Project Management and HESQ (Health, Environment, Safety & Quality). This was a joint bid between Project Personnel and Consulting in Norway and shows that, going forward, our total offering enables us to continue the diversification outside oil and gas industry.”

KEY FIGURES

 

EUR million
7-12
2018
7-12
2017
Change
%
1-12
2018
1-12
2017
Change
%
Net sales32.729.610.665.562.74.4
Operating result0.40.359.30.50.1942.5
% of net sales1.30.9 0.80.1 
Result before tax1,00,11 286,51,1-0,4365,8
% of net sales3,10,3 1,6-0,6 
Result for the period0.9-0.11,254.90.8-0.5254.4
% of net sales2.8-0.3 1.3-0.9 
Net cash flow from operations1.80.11,205.71.1-0.9222.2
Net debt-1.7-2.1-18.3-1.7-2.1-18.3
Debt-equity ratio (Gearing), %-7.8-9.4-16.6-7.8-9.4-16.6
Earnings per share, EUR:      
  Undiluted0.009-0.005295.50.008-0.005254.1
  Diluted0.009-0.005295.50.008-0.005254.2

 

OUTLOOK FOR 2019 (unchanged, published 25 January 2019)

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 and the prices are improving slightly. 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 2018.

In the Consulting business area, market outlook remains unchanged.

Dovre Group’s net sales are expected to improve compared to 2018 (2018: EUR 65.5 million) and the operating profit is expected to be more than EUR 1.3 million (2018: EUR 0.5 million). 

 

BOARD OF DIRECTORS’ PROPOSAL FOR DIVIDEND

The parent company’s distributable funds were EUR 18,42,849.49 on December 31, 2018. The Board of Directors proposes to the Annual General Meeting to be held on March 27, 2019 that a dividend of EUR 0.01 (0.01) per share to be paid. The Board of Directors further proposes that the dividend is paid to a shareholder who on the record date March 29, 2019 is registered as a shareholder in the company's shareholder register maintained by Euroclear Finland Ltd and that the dividend be paid on April 25, 2019. Dividend is not paid to the shares owned by the company. No significant changes have occurred in the company’s financial position after the end of the financial year. The proposed distribution of dividend poses no risk to the company’s financial standing.

This stock exchange release is a summary of Dovre Group Plc’s Financial Stament Release January 1 - December 31, 2018. The full bulletin is attached to this release and is also available online at www.dovregroup.com-> Investors

 

Espoo, February 21, 2019

DOVRE GROUP PLC
BOARD OF DIRECTORS

For additional information, please contact:

Dovre Group Plc
Arve Jensen, CEO
(arve.jensen@dovregroup.com)
+47 90 60 78 11

Mari Paski, CFO
(mari.paski@dovregroup.com)

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

 

Financial reporting in 2019
Dovre Group releases its financial reports in 2019 as follows:

  • Q1 trading statement for January 1–March 31, 2019 on Tuesday, April 30, 2019
  • Half-year financial report for January 1–June 30, 2019 on Thursday, July 25, 2019
  • Q3 trading statement for January 1–September 30, 2019 on Thursday, October 24, 2019

The company’s Annual General Meeting is to be held on Wednesday, March 27, 2019. Dovre Group’s Board of Directors will summon the meeting at a later date. The Annual Report 2018, which includes the company’s financial statements, the report of the Board of Directors, and the corporate governance statement, will be published online during week 10.

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 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

Distribution
Nasdaq Helsinki Ltd
Major media
www.dovregroup.com

 

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