Dovre Group Oyj - Financial Statement Release

DOVRE GROUP’S FINANCIAL STATEMENT RELEASE 1.1.–31.12.2019: Annual net sales grew by 27% and operating profit increased by 401% to 2.7 million euros

Dovre Group Plc                                         Financial Statement Release                                             Feb 20, 2020 at 8.45 am

 

DOVRE GROUP’S FINANCIAL STATEMENT RELEASE 1.1.–31.12.2019: Annual net sales grew by 27% and operating profit increased by 401% to 2.7 million euros

 

Last year’s corresponding period in parentheses.

 

July–December 2019

• Net sales grew to EUR 44.9 (32.7) million – half of the 37.3% increase is explained by the Tech4Hire acquisition.
  • Project Personnel: net sales totaled EUR 41.8 (29.8) million – increase of 40.2%.
  • Consulting: net sales totaled EUR 3.1 (2.9) million – increase of 8.0%.
• Operating result improved to EUR 2.2 (0.4) million and includes EUR 0.7 (0.0) million of non-recurring items.
• Profit before tax was EUR 2.2 (1.0) million including EUR 0.1 (0.6) million of finance items.
• Result for the period improved to EUR 1.9 (0.9) million.
• Earnings per share EUR 0.018 (0.009).
• Net cash flow from operating activities increased to EUR 2.7 (1.8) million.

 

January–December 2019

• Net sales grew to EUR 83.1 (65.5) million – nearly half of the 27% increase is explained by Tech4Hire acquisition.
  • Project Personnel: Net sales totaled EUR 77.0 (59.7) million – increase of 29.1%.
  • Consulting: Net sales totaled EUR 6.1 (5.8) million – increase of 5.6%.
• Operating result improved to EUR 2.7 (0.5) million and includes EUR 0.7 (0.0) million of non-recurring items.
• Profit before tax improved to EUR 2.6 (1.1) million including EUR -0.1 (0.6) million of finance items.
• Result for the period improved to EUR 2.1 (0.8) million.
• Earnings per share EUR 0.021 (0.008).
• Net cash flow from operating activities grew to  EUR 1.3 (1.1) million
• Board of Directors proposes to the Annual General Meeting (AGM) to be held on April 28, 2020 that a dividend of EUR 0.01 (0.01) per share will be paid.

 

CEO ARVE JENSEN:

”Financial period proceeded according to our expectations and we managed to grow our business profitably due to the organic growth and Tech4Hire-acquisition. Profitable growth which started in the first half of the year 2019 continued in Q4 2019. All units had higher sales figures than in 2018, and consequently both business areas Project Personnel and Consulting achieved growth in net sales. Positive market situation, deepening of long-term client relationships and recent frame agreements are the main reasons behind the growth.

The sale of Kuukoti office building in September improved our cash flow and  reduced our annual operational costs by approximately 50,000 euros. Cost reductions made in previous years have a positive impact on profitability when we continue to grow in future.

New frame agreements which were made in 2019 in Norway with Nye Veier, Fornebubanen and Ministry of Finance strengthen our position within consulting and project management outside energy sector. Acquisition of Tech4hire strengthen Dovre towards the supplier industry in Norway.

After the reporting period we reorganized our business in Norway in order to strengthen Dovre’s position even further. The new organizational structure combines those businesses that have specific features in the energy sector as one entity and those with core expertise in consulting as one entity. The new structure enables Dovre’s personnel to utilize their expertise and full potential better in the management of customer projects and in developing Dovre’s business. In addition we expanded our operations in the beginning of February, 2020 to a new geographical area of western Russia by establishing a new subsidiary company in St. Petersburg (Dovre ooo).”

 

GROUP’S KEY FIGURES

EUR million	7–12 2019	7–12 2018	Change %	1–12 2019	1–12 2018	Change %
Net sales	44.9	32.7	37.3	83.1	65.5	27.0
Operating result	2.2	0.4	405.9	2.7	0.5	401.4
% of net sales	4.8	1.3		3.3	0.8
Profit before taxes	2.2	1.0	115.5	2.6	1.1	149.7
% of net sales	4.9	3.1		3.2	1.6
Result for the period	1.9	0.9	104.2	2.1	0.8	147.6
% of the net sales	4.2	2.8		2.5	1.3
Net cash flow from operating activities	2.7	1.8	46.6	1.3	1.1	19.5
Net debt	0.0	-1.7	-102.3	0.0	-1.7	-102.3
Debt-equity ratio (Gearing), %	0.2	-7.8	-102.1	0.2	-7.8	-102.1
Earnings per share, EUR
Undiluted	0.018	0.009	102.1	0.021	0.008	145.1
Diluted	0.018	0.009	102.1	0.021	0.008	145.1

 

OUTLOOK FOR 2020 (unchanged, published January 30, 2020):

Net sales and operating profit in 2020 are expected to improve compared to 2019 excluding non-recurring items.

 

BOARD OF DIRECTORS’ PROPOSAL FOR DIVIDEND

The parent company’s distributable funds were EUR 19,184,773.10 on December 31, 2019. The Board of Directors proposes to the Annual General Meeting to be held on April 28, 2020 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 April 30, 2020 is registered as a shareholder in the company's shareholder register maintained by Euroclear Finland Ltd and that the dividend be paid on May 8, 2020.

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 Statement Release January 1 - December 31, 2019. The full bulletin is attached to this release and is also available online at www.dovregroup.com-> Investors.

 

Espoo, February 20, 2020

DOVRE GROUP PLC
BOARD OF DIRECTORS

 

For additional information, please contact:

Dovre Group PLC

Arve Jensen
CEO
arve.jensen@dovregroup.com
tel. +47 90 60 78 11

Mari Paski
CFO
mari.paski@dovregroup.com
tel. +358 20 436 2000

www.dovregroup.com

 

Financial reporting in 2020

Dovre Group releases its financial reports in 2020 as follows:

• Q1 trading statement for January 1–March 31, 2020 on Tuesday, April 28, 2020
• Half-year financial report for January 1–June 30, 2020 on Tuesday, July 28, 2020
• Q3 trading statement for January 1–September 30, 2020 on Tuesday, October 27, 2020

 

The company’s Annual General Meeting is to be held on Tuesday, April 28, 2020. Dovre Group’s Board of Directors will summon the meeting at a later date. The Annual Report 2019, which includes the company’s financial and non-financial statements, the report of the Board of Directors, and the corporate governance statement, will be published online during week 10.

 

Distribution
Nasdaq Helsinki Ltd
Major media

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 and the US, and employs more than 650 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Website: www.dovregroup.com

 

 

Attachment

• Dovre Financial Statement Release 2019 ENG

Attachments:

Dovre Financial Statement Release 2019 ENG.pdf