DOVRE GROUP INTERIM REPORT (IFRS) JANUARY 1 - JUNE 30, 2011

Espoo, Finland, 2011-07-28 07:45 CEST (GLOBE NEWSWIRE) -- Dovre Group Plc                            Interim report                                        July 28, 2011 at 08:45 a.m.

DOVRE GROUP INTERIM REPORT (IFRS) JANUARY 1 – JUNE 30, 2011

Dovre Group’s net sales and operating result decreased in Q2/2011

(Unless otherwise stated, last year’s corresponding period in parentheses.)

SUMMARY

April – June 2011

·         Net sales EUR 17.4 (18.6) million – change -6.0%

·         Project Personnel: net sales EUR 14.8 (16.1) million – change -7.9%

·         Consulting: net sales EUR 1.8 (1.6) million – growth 12.3%

·         Software: net sales EUR 0.9 (1.0) million – change -8.3%

·         Operating result EUR 0.6 (0.9) million – change EUR -0.3 million

·         Result for the period EUR 0.3 (0.5) million – change EUR -0.2 million

·         Earnings per share EUR 0.00 (0.01)

·         Net cash flow from operating activities EUR -0.9 (1.2) million

January – June 2011

·         Net sales EUR 36.0 (34.8) million – growth 3.3%

·         Project Personnel: net sales EUR 30.8 (30.0) million – growth 2.6%

·         Consulting: net sales EUR 3.4 (3.1) million – growth 9.0%

·         Software: net sales EUR 1.9 (1.9) million – growth 3.4%

·         Operating result EUR 3.0 (1.4) million – increase EUR 1.6 million

·         Result for the period EUR 1.7 (1.0) million – increase EUR 0.7 million

·         Closure of the defined benefit pension plan in Norway improved the operating result by approx. EUR 1.7 million and the result for the period by approx. EUR 1.2 million

·         Earnings per share EUR 0.03 (0.02)

·         Net cash flow from operating activities EUR -0.4 (2.2) million

Net sales and operating result in 2011 are expected to grow from 2010. The guidance has not been changed.

The interim report is unaudited.

KEY FIGURES

ILKKA TOIVOLA, CEO

In the second quarter of 2011, Dovre Group was behind both its target and the second quarter of 2010, a particularly strong quarter for the Group. The Group’s net sales in the second quarter of 2011 were down by 6% compared to 2010, with Norway and Canada facing the biggest challenges. In Norway, the number of consultants was lower than in the second quarter of 2010, but has increased in the first half of 2011. In Canada, our growth did not proceed as expected due to the ramp down of a major project. In addition, our net sales during the second quarter were affected negatively by the weakening of the Canadian and the US dollars. The Group’s Consulting division performed well in the second quarter, increasing its net sales by 12%.

The Group’s operating result decreased compared to 2010, being EUR 0.6 million in the second quarter of 2011. We have invested in developing the Group globally and in establishing a business unit in the Middle East. In addition, software sales in the Group’s Software division were down from the second quarter of 2010, with a direct impact on our operating result.

In the first half of 2011, the Group’s net sales grew by 3% compared to 2010. All business divisions were ahead of their net sales compared to the first half of 2010.

The Group’s operating result was EUR 3.0 million in the first half. Excluding the release of the provision from the defined benefit pension plan, the Group’s operating result was EUR 1.3 (1.4) million.

In the first half of 2011 the cash and the cash equivalents remained on the same level. The net cash flows from investments and financing were positive. The net cash flow from operations was EUR 0.4 million negative due to an increase in working capital.

FUTURE OUTLOOK

Despite general economic insecurity, investment levels in the oil and gas industry have been deemed to remain higher than in previous years. Major oil and gas companies have indicated increased investments in new projects over the next two years. Based on market forecasts, we expect the Project Personnel division to grow in 2011 as we expect demand for the divisions’ services to grow in all market areas.

Markets for the Group’s Consulting and Software divisions are estimated to grow 7-9% in most North European countries. Both business divisions expect growth in net sales in 2011. In the Consulting division, we aim to continue strengthening our position in the renewable energy market through profitable pilot projects. Therese Hindman Persson, the new leader of the division, has extensive experience in consulting and in the renewable energy sector. In the Software division, Safran is actively developing its business by continuing market expansion outside Norway.

We will continue developing the Group as outlined in our long term goals. The Group continues the measures to improve the efficiency of its operations.

Net sales and operating result in 2011 are expected to grow from 2010. The guidance has not been changed.

This future outlook is based on forecasts approved by Dovre Group’s Board of Directors.

DISCLOSURE PROCEDURE

Dovre Group Plc follows the disclosure procedure enabled by Standard 5.2b published by the Finnish Financial Supervision Authority and hereby publishes its interim report for January 1 - June 30, 2011 enclosed to this stock exchange bullet-in. Dovre Group’s interim report for January 1 - June 30, 2011 is attached to this bullet-in in pdf format and is also available on the company’s web site at www.dovregroup.com.

For additional information, please contact

DOVRE GROUP PLC

Ilkka Toivola, CEO

tel. +358-20-436 2000

ilkka.toivola@dovregroup.com

www.dovregroup.com

Dovre Group is a global provider of project management services and software. Dovre Group consists of three divisions: Project Personnel, Consulting, and Software. In 2010, the Group’s net sales were EUR 71 million. Dovre Group employs over 400 people serving clients in 21 countries worldwide.

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NASDAQ OMX Helsinki Ltd

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