2017-10-26 07:45:01 CEST

2017-10-26 07:45:01 CEST


REGULATED INFORMATION

Finnish English
Dovre Group Oyj - Interim report (Q1 and Q3)

DOVRE GROUP TRADING STATEMENT JANUARY 1 – SEPTEMBER 30, 2017



 

Dovre Group Plc  Stock Exchange Release   October 26, 2017 at 8.45 a.m.

DOVRE GROUP TRADING STATEMENT JANUARY 1 – SEPTEMBER 30, 2017

Q3: IMPROVED OPERATING RESULT DESPITE LOWER SALES

Dovre Group Plc issues today a trading statement for the nine months ended on September 30, 2017. The figures presented in this trading statement are not audited. Last year’s corresponding period in parentheses.

July – September 2017

  • Net sales EUR 14.7 (17.9) million – decline 18%
  • Project Personnel: net sales EUR 13.6 (16.4) million – decline 17%
  • Consulting: net sales EUR 1.1 (1.5) million – decline 26%
  • Operating result EUR 0.0 (-0.1) million
  • Net cash flow from operating activities EUR -2.2 (0.8) million

January – September 2017

  • Net sales EUR 47.8 (65.7) million – decline 27%
  • Project Personnel: net sales EUR 43.5 (60.6) million – decline 28%
  • Consulting: net sales EUR 4.3 (5.2) million – decline 17%
  • Operating result EUR -0.2 (0.0) million, incl. EUR 0.3 million of restructuring costs
  • Net cash flow from operating activities EUR -3.2 (-0.9) million

Guidance for 2017 (unchanged): Operating result is expected to improve compared to 2016.

PATRICK VON ESSEN, CEO:

“Breakeven in the summer holiday quarter is a small but significant step towards profitable growth.

In our Project Personnel business the consultant headcount in our largest market, Norway, has grown by more than 15 % this year. In Singapore, our headcount dipped after summer as predicted. The dip was the consequence of a major project coming to an end. Since then, we have won a new project in Singapore, and the headcount is on its way back up again. In Canada, our headcount has remained stable this year.

Our Consulting business continues to perform well, although not quite as stellar as in the previous quarters.”

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 in Norway. There are signs of improvement in other markets as well. The price level in the oil and gas industry is, however, still clearly lower than in recent years. Thanks to a strong portfolio of frame agreements as well as implemented cost savings, we expect our 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 Q3, Dovre Group’s net sales declined by 17.9% and were EUR 14.7 (17.9) million. Project Personnel accounted for 93 (92) % and Consulting for 7 (8) % of the Group’s net sales. Project Personnel’s net sales were EUR 13.6 (16.4) million, while net sales for Consulting totalled EUR 1.1 (1.5) million.

During the period under review Dovre Group’s net sales declined by 27.3% and were EUR 47.8 (65.7) million. Project Personnel accounted for 91 (92) % and Consulting for 9 (8) % of the Group’s net sales. Project Personnel’s net sales were EUR 43.5 (60.6) million, while net sales for Consulting totalled EUR 4.3 (5.2) million.

Fluctuations in foreign currency exchange rates did not have a significant impact on the Group’s total net sales during Q3 or the period under review.

  

Net sales by reporting segment
EUR million
7-9
2017
7-9
2016
Change
%
1-9
2017
1-9
2016
Change
%
1-12
2016
 
Project Personnel 13.6 16.4 -17.1 43.5 60.6 -28.2 76.9  
Consulting 1.1 1.5 -26.3 4.3 5.2 -17.0 6.9  
Group total 14.7 17.9 -17.9 47.8 65.7 -27.3 83.8  

 

OPERATING RESULT

In Q3, the Group’s operating result was EUR 0.0 (-0.1) million. Project Personnel’s operating result was EUR 0.3 (0.0) million. Consulting business area’s operating result was EUR 0.1 (0.2) million. The operating result of the Group’s Other functions was EUR -0.3 (-0.2) million.

During the period under review, the Group’s operating result was EUR -0.2 (0.0) million. Project Personnel’s operating result was EUR 0.3 (0.5) million. Consulting business area’s operating result was EUR 0.6 (0.7) million. The operating result of the Group’s Other functions was EUR -0.9 (-0.9) million. In Q1/2017, the Group reported EUR 0.3 million restructuring costs in Project Personnel business area.

 

Operating result
EUR million
7-9
2017
7-9
2016
Change
%
1-9
2017
1-9
2016
Change
%
1-12
2016
 
Project Personnel 0.3 0.0 2059.7 0.3 0.5 -33 0.6  
Consulting 0.1 0.2 -53.8 0.6 0.7 -18.5 1.0  
Other functions -0.3 -0.2 -13.0 -0.9 -0.9 6.0 -1.2  
Unallocated *) -0.1 -0.1 18.8 -0.2 -0.3 21.5 -0.3  
Group total 0.0 -0.1 117.8 -0.2 0.0 -1383.8 0.0  

*) Unallocated expenses include customer agreements and relations and their amortization, as well as share-based compensation recognized as expense in the income statement.

 

PERSONNEL

On September 30, 2017, Dovre Group employed 439 (489) people, of which 400 (442) were employed by Project Personnel, 35 (41) by Consulting and 4 (6) by Other functions.

CASH POSITION

On September 30, 2017, the Group’s net debt was EUR -0.2 (-3.1) million. The Group’s cash and cash equivalents totaled EUR 3.2 (7.0) million. The Group’s interest-bearing liabilities were EUR 3.0 (3.9) million,  of which EUR 1.8 (2.1) million were current and EUR 1.2 (1.8) million non-current.

In Q3  net cash flow from operating activities was EUR -2.2 (0.8) million, which includes EUR -2.3 (0.9) million change in working capital. The last day of the third quarter was a Saturday, and approx. MEUR 1.5 payments from customers were received on October 2.

 

In Espoo, October 25, 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 website www.dovregroup.com.

 

DISTRIBUTION:
Nasdaq Helsinki
Major media
www.dovregroup.com