2018-02-22 07:45:00 CET

2018-02-22 07:45:03 CET


REGULATED INFORMATION

Finnish English
Dovre Group Oyj - Annual Financial Report

Dovre Group’s Financial Statement Release January 1 – December 31, 2017


Dovre Group Plc                           Financial Statement Release                           February 22, 2018 at 8.45 am 

DOVRE GROUP’S FINANCIAL STATEMENT RELEASE JANUARY 1 – DECEMBER 31, 2017

POSITIVE OPERATING RESULT THANKS TO STRONG FINISH

Last year’s corresponding period in parentheses.

July-December 2017
          ·Net sales EUR 29.6 (36.0) million – decline 18%
          ·Project Personnel: net sales EUR 27.2 (32.7) million – decline 17%
          ·Consulting: net sales EUR 2.4 (3.2) million – decline 25%
          ·Operating result EUR 0.3 (-0.1) million. Q4 operating result EUR 0.2 (0.0) million.
          ·Result for period EUR -0.1 (-0.9) million, incl. EUR -0.0 (-0.2) million of financing items and EUR -0.2 (-0.4) million of the result of the Group’s joint venture SaraRasa.
          ·Earnings per share EUR -0.00 (-0.01)
          ·Net cash flow from operating activities EUR 0.1 (2.2) million

January-December 2017
          ·Net sales EUR 62.7 (83.8) million – decline 25%
          ·Project Personnel: net sales EUR 57.1 (76.9) million – decline 26%
          ·Consulting: net sales EUR 5.6 (6.9) million – decline 19%
          ·Operating result EUR 0.1 (0.0) million incl. EUR 0.3 (0.0) of restructuring costs
          ·Result for the period EUR -0.5 (-1.7) million, incl. EUR -0.2 (-0.7) million financing items and EUR -0.2 (-0.8) million of the result of the Group’s joint venture SaraRasa.
          ·Earnings per share EUR -0.01 (-0.02)
          ·Net cash flow from operating activities EUR -0.9 (0.6) million
          ·Board of Directors proposes to the AGM a dividend of EUR 0.01 (0.01) per share.
             
Outlook for 2018: Net sales and operating result are expected to improve compared to 2017.

The financial information presented in this financial statement release is based on the company’s audited financial statements. The auditor’s report was issued on February 21, 2018.

PATRICK VON ESSEN, CEO:

“We are not satisfied with the 2017 full year sales and operating profit. However, the last quarter of 2017 shows that we are moving in the right direction. Despite low sales, in Q4 2017 we recorded the best quarterly operating profit in three years. We have a strong and balanced portfolio of frame agreements. Our order stock is stronger than a year ago. Our operations are lean and efficient. If, as we anticipate, volumes continue to increase, we are well placed to increase sales and improve our operating profit.

In Project Personnel, sales fell by over 25 % in 2017, and yet the operating profit increased by almost 40 %. The improvement is partly thanks to slightly better gross margin, but mainly thanks to significant reductions in fixed costs. Overall, our Project Personnel performed very well under difficult circumstances. In particular, I am happy with the performance of our largest operation Norway. Singapore had a great finish to the year. 

After several years of stellar performance, our Consulting business had a slightly softer year. Even so, Consulting delivered a respectable operating profit. At times, the order stock was low, and required significantly increased focus on sales. As a result, the order stock started to improve – both in Norway and Finland - towards the end of the year.

The target of Dovre Group is to be our clients’ preferred partner in projects. We deliver advisory services, project personnel and IT tools for project success. Our focus is large projects in oil & gas, energy, infrastructure and industry. Our clients are leading private and public organizations around the world. “

KEY FIGURES

 

EUR million
7-12
2017
7-12
2016
Change
%
1-12
2017
1-12
2016
Change
%
Net sales29.636.0-17.862.783.8-25.2
Operating result0.3-0.1340.10.10.01175.6
% of net sales0.9-0.3  0.10.0  
Result-0.1-0.991.3-0.5-1.767.2
% net sales-0.3-2.5  -0.9-2.0  
Net cash flow from operations0.12.2-93.3-0.90.6-257.1
Net debt-2.1-4.7-55.1-2.1-4.7-55.1
Debt-equity ratio (Gearing), %-9.4-18.3  -9.4-18.3  
Earnings per share, EUR:       
Undiluted-0.00-0.0191.3-0.01-0.0267.3
Diluted-0.00-0.0191.3-0.01-0.0267.3


OUTLOOK FOR 2018

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, but the price level in the oil and gas industry is still lower than in recent years. 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.

BOARD OF DIRECTORS’ PROPOSAL FOR DIVIDEND

The parent company’s distributable funds were EUR 23,334,137.19 on December 31, 2017. The Board of Directors proposes to the Annual General Meeting to be held on March 28, 2018 that a dividend of EUR 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 3, 2018 is registered as a shareholder in the company's shareholder register maintained by Euroclear Finland Ltd and that the dividend be paid on April 10, 2018. It is stated that 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 company’s liquidity is good, and the proposed distribution of dividend poses no risk to the company’s financial standing.

BRIEFING FOR PRESS AND FINANCIAL ANALYSTS ON FEBRUARY 22, 2018

Dovre Group’s briefing on the company’s financial statements 2017 will be held on Thursday, February 22, 2018, starting at 10 a.m. at Helsinki Bourse Club, Fabianinkatu 14 A, 4th floor, Helsinki.

The presentation material will be available on the company’s investor pages www.dovregroup.com -> Investors after the briefing. The material is in English.

This stock exchange bulletin  is a summary of Dovre Group Plc’s financial statement release  Jan. 1 – Dec. 31, 2017. The complete release  is attached to this bulletin and is also available online at www.dovregroup.com -> Investors

Espoo, February 21, 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's annual report 2017, including the financial statements, the report of the Board of Directors, and the company's separate Corporate Governance Statement, will be published online during week 10.

Dovre Group releases its financial reports in 2018 as follows:
      ·Q1 trading statement for January 1 – March 31, 2018 on Thursday, April 26, 2018
      ·Half-year report for January 1 – June 30, 2018 on Thursday, July 26, 2018
      ·Q3 trading statement for January 1 – September 30, 2018 on Thursday, October 25, 2018

Distribution
Nasdaq Helsinki Ltd
Major media
www.dovregroup.com

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