Published:

2020-07-28 07:45:00 CEST

Registered:

2020-07-28 07:45:01 CEST

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Dovre Group Oyj - Half Year financial report

DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2020: Net sales increased by 13% and profitability improved in January–June 2020

Dovre Group Plc Half year financial statement July 28, 2020 at 8.45 a.m.

DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2020: Net sales increased by 13% and profitability improved in January–June 2020

The figures presented in this half-year financial report are not audited. Last year’s corresponding period in parentheses.

January–June 2020

Net sales grew by 13.0% to EUR 43.2 (38.2) million
- Project Personnel: net sales totaled EUR 35.5 (35.2) million – increase of 0.8%.
- Consulting: net sales totaled EUR 7.7 (3.0) million – increase of 155.9%.
Operating result improved to EUR 1.2 (0.6) million.
Profit before tax was EUR 1.2 (0.4) million including EUR 0.1 (-0.1) million of finance items.
Result for the period improved to EUR 1.1 (0.2) million.
Earnings per share EUR 0.011 (0.002).
Net cash flow from operating activities increased to EUR 2.5 (-1.4) million.

Outlook for 2020 unchanged (issued on 28 April 2020):

The impact of the pandemic, oil price and currencies on Dovre's operations and business environment will depend on the duration and extent of the crisis. Based on the current situation, Dovre’s net sales are expected to be slightly below 2019 and the operating profit is expected to be in line with 2019 excluding non-recurring items and currency effects.

Due to the company's healthy balance sheet and sound business, we still consider Dovre's long-term growth opportunities and prospects to be good.

GROUP’S KEY FIGURES

EUR million	1–6 2020	1–6 2019	Change %	1–12 2019
Net sales	43.2	38.2	13.0	83.1
Operating result	1.2	0.6	109.7	2.7
% of net sales	2.7	1.4		3.3
Profit before taxes	1.2	0.4	185.5	2.6
% of net sales	2.8	1.1		3.2
Result for the period	1.1	0.2	407.1	2.1
% of the net sales	2.6	0.6		2.5
Net cash flow from operating activities	2.5	-1.4	279.8	1.3
Net debt	-1.6	4.1	139.0	0.0
Debt-equity ratio (Gearing), %	-6.7	18.4	136.4	0.2
Earnings per share, EUR
Undiluted	0.011	0.002	395.6	0.021
Diluted	0.011	0.002	395.6	0.021

CEO ARVE JENSEN:

In H1, Dovre’s net sales increased by 13% from the comparison period, with both segments contributing to this growth. The period was, however, twofold. In the first quarter performance was good and in line with our expectations, but in the second quarter the impacts of the coronavirus pandemic started to show in a slowing business demand. We monitored market developments closely and adjusted our operations accordingly. Thanks to these measures taken our relative profitability continued to improve in H1, and our operating profit doubled from the comparison period to 1.2 million euros. We saw profitable growth in both Project Personnel and Consulting segments. Our operations in Singapore have had a very strong start of the year even with the challenging Corona impacts.

The acquisition of Tech4Hire in 2019 and the reorganization of our operations in Norway in January 2020 have proven to be successful. We see clear strengths in our current business model and our plan is to further develop our services during H2 2020.

Although the coronavirus pandemic seems to have stabilized in Norway, Finland and some parts of Europe and Asia, the situation is still critical globally, and especially in our market area Americas. In the last period, the oil price has developed positively and in June, the Norwegian Government has implemented tax changes for the oil companies in Norway in order to stimulate new investments. We continue to closely monitor market developments. At the moment it looks that the negative effects of the pandemic will impact our business at least in the latter half of 2020.

This stock exchange release is a summary of Dovre Group Plc’s Half Year Financial Report January 1 - June 30, 2020. The full bulletin is attached to this release and is also available online atwww.dovregroup.com-> Investors

Espoo, July 28, 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

Financial reporting in 2020

Q3 trading statement for January 1–September 30, 2020 on Tuesday, October 27, 2020

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 670 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Company websitewww.dovregroup.com.