Dovre Group Plc Half year financial report July 26, 2018 at 8.45 a.m.
DOVRE GROUP HALF YEAR FINANCIAL REPORT JANUARY 1–JUNE 30, 2018
IMPROVED OPERATING RESULT, NET SALES INCREASED IN Q2
Dovre Group Plc issues today the company’s half year financial report for the six months ended on 30 June 2018. The figures presented in this half year financial report are not audited. Last year’s corresponding period in parentheses.
January-June 2018
·Net sales nearly stable at EUR 32.7 (33.1) million – decline 1.1%
·Project Personnel: net sales EUR 29.8 (29.9) million – decline 0.2%
·Consulting: net sales EUR 2.9 (3.2) million – decline 9%
·Operating result improved to EUR 0.1 (-0.2) million, Q1 operating result EUR 0.0 (-0.3) million and incl. in the comparable period EUR 0.3 million of restructuring costs, Q2 operating result EUR 0.1 (0.0) million
·Result for the period EUR -0.1 (-0.5) million, incl. EUR -0.1 (-0.2) million finance items and EUR -0.0 (-0.1) million of the result of the Group’s joint venture SaraRasa
·Earnings per share EUR -0.001 (-0.005)
·Net cash flow from operating activities EUR -0.7 (-1.0) million
Outlook for 2018 (unchanged): Net sales and operating result are expected to improve compared to 2017.
PATRICK VON ESSEN, CEO:
“Many things are moving in the right direction for Dovre Group. In Q2, we recorded the first year-on-year quarterly sales increase since 2015. Our Q2 operating result also improved year-on-year, and our H1 operating result was better than last year. The H1 operating result was still modest. However, our order stock for H2 – and for Q3 in particular - is much more robust than at the same time last year. Our cost structure is leaner than ever. We expect a strong finish to the year.
Project personnel: Despite lower volume than last year, the profitability improved significantly in H1. In our largest market Norway, volumes – and lately also prices - are trending up. There are signs of increasing demand also in Canada and Singapore. The efforts in our newest project personnel market – Finland – are starting to pay off. We have several ongoing permanent recruitment mandates with European clients for project management and general management positions. In project personnel, our H2 focus is increased sales, improved gross margin, and fixed cost prudence.
Consulting: Compared to the stellar performance in H1 of 2017, the profitability decreased, but is still on a very respectable level. Increased execution capacity in Norway and an improved order stock gives us confidence that H2 will be strong.
We are seeing good progress also in our joint venture company SaraRasa. The pellet price recovery helped to turn the EBIT of SaraRasa positive in H1 of 2018, and although the net result is still in the red, the market for wood pellets is improving, and the production capacity is expected to increase.
All in all, we are well placed to further improve our service, sales and operating result.”
KEY FIGURES
| EUR million | 1-6 2018 | 1-6 2017 | Change % | 1-12 2017 |
| Net sales | 32.7 | 33.1 | -1.1 | 62.7 |
| Operating result | 0.1 | -0.2 | 152.7 | 0.1 |
| % of net sales | 0.3 | -0.7 | 0.1 | |
| Result | -0.1 | -0.5 | 84.9 | -0.5 |
| % of net sales | -0.2 | -1.4 | -0.9 | |
| Net cash flow from operations | -0.7 | -1.0 | 30.0 | -0.9 |
| Net debt | -0.1 | -2.4 | 97.1 | -2.1 |
| Debt-equity ratio (Gearing), % | -0.3 | -10.3 | -97.1 | -9.4 |
| Earnings per share, EUR: | ||||
| Undiluted | -0.001 | -0.005 | -84.9 | -0.005 |
| Diluted | -0.001 | -0.005 | -84.9 | -0.005 |
OUTLOOK FOR 2018 (UNCHANGED)
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 2017.
In the Consulting business area, market outlook remains unchanged.
We expect the Group’s net sales and operating result to improve compared to 2017.
This stock exchange release is a summary of Dovre Group Plc’s half year financial report January 1 - June 30, 2018. The full bulletin is attached to this release and is also available online at www.dovregroup.com -> Investors
Espoo, July 26, 2018
Dovre Group Plc
Board of Directors
For additional information, please contact:
Dovre Group Plc
Patrick von Essen, CEO
(patrick.essen@dovregroup.com)
Mari Paski, CFO
(mari.paski@dovregroup.com)
tel. +358-20-436 2000
www.dovregroup.com
Financial reporting in 2018
Dovre Group releases its remaining financial reports in 2018 as follows:
·Q3 trading statement for January 1 - September 30, 2018 on Thursday, October 25, 2018
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 more than 500 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V).
Distribution
Nasdaq Helsinki Ltd
Major media
www.dovregroup.com
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