DOVRE GROUP HALF YEAR FINANCIAL REPORT JANUARY 1–JUNE 30, 2019
Dovre Group Plc Half year financial report July 25, 2019 at 8.45 a.m.
DOVRE GROUP HALF YEAR FINANCIAL REPORT JANUARY 1–JUNE 30, 2019
NET SALES AND RESULT INCREASED DUE TO POSITIVE MARKET AND TECH4HIRE ACQUISITION
Last year’s corresponding period in parentheses.
January - June 2019
- Net sales grew both organically and due to an acquisition to EUR 38.2 (32.7) million – increase 16.6%
- Project Personnel: net sales EUR 35.2 (29.8) million – increase 17.9%
- Consulting: net sales EUR 3.0 (2.9) million – increase 3.2%
- Operating result improved to EUR 0.6 (0.1) million, Q1 operating result EUR 0.3 (0.0) million, Q2 operating result EUR 0.3 (0.1) million, incl. some EUR 0.1 million of transaction costs for Tech4hire acquisition
- Result for the period EUR 0.2 (-0.1) million, incl. EUR -0.1 (-0.1) million finance items.
- Earnings per share EUR 0.002 (-0.001)
- Net cash flow from operating activities EUR -1.4 (-0.7) million
ARVE JENSEN, CEO:
“The first six months of 2019 have been favourable to Dovre Group. Net sales grew in both business areas and our result improved significantly. While some of this development was the result of newly acquired business, we showed good organic growth as well.
The acquisition of an Norwegian staffing and consultancy company Tech4Hire AS, specializing in providing highly qualified engineering consultants primarily to the oil and gas industry, strengthens our position in Norway and helps us to grow further.
Project Personnel continues benefit from positive market environment. There is clearly increased demand for our services. Our net sales increased by 17% in the first six months, of which 11 percentage points was organic growth. It is also positive, that the high demand has enabled increased rates in our main markets.
Sales increased also in the Consulting business area, in particular in Norway. In Finland, our new company structure is finalized and we expect this restructuring to improve efficiency as well as enable new growth in the market.
We have now seen increased sales and improved profits for five consecutive quarters. We reported our strongest Q1 quarterly operating result since 2014, and our result in Q2 was equally strong. Our efforts of restructuring the business to reduce overhead costs and focus on increasing sales are clearly materializing. Due to corporate restructuring, we have reduced our corporate fixed overhead by about EUR 400 thousand annually, starting in the beginning of 2019. Keeping our costs low and continuously grow our operations are key in taking Dovre Group forward to better profitability.
After the review period, we were awarded a frame agreement with The Norwegian Ministry of Finance for supply of external quality assurance for large public projects in Norway. Like the frame agreement with Nye Veier signed in January, this was a joint bid between Project Personnel and Consulting in Norway and demonstrates our competitiveness outside oil and gas industry.”
KEY FIGURES
| EUR million | 1-6 2019 | 1-6 2018 | Change % | 1-12 2018 |
| Net sales | 38.2 | 32.7 | 16.6 | 65.5 |
| Operating result | 0.6 | 0.1 | 384.5 | 0.5 |
| % of net sales | 1.4 | 0.3 | 0.8 | |
| Result before taxes | 0.4 | 0.0 | 1,429.3 | 1.1 |
| % of net sales | 1.1 | 0.1 | 1.6 | |
| Result | 0.2 | -0.1 | 414.1 | 0.8 |
| % of net sales | 0.6 | -0.2 | 1.3 | |
| Net cash flow from operations | -1.4 | -0.7 | -92.3 | 1.1 |
| Net debt | 4.1 | -0.1 | 6,002.2 | -1.7 |
| Debt-equity ratio (Gearing), % | 18.4 | -0.3 | -6,233.3 | -7.8 |
| Earnings per share, EUR: | ||||
| Undiluted | 0.002 | -0.001 | -413.1 | 0.008 |
| Diluted | 0.002 | -0.001 | -413.1 | 0.008 |
OUTLOOK FOR 2019 (unchanged, published 26 June 2019)
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 improving demand, a strong portfolio of frame agreements, cost savings already implemented, and the Tech4Hire acquisition, we expect our net sales and operating result to improve from 2018.
In the Consulting business area, market outlook remains unchanged.
Dovre Group’s net sales are expected to improve compared to 2018 (2018: EUR 65.5 million) and the operating profit is expected to be more than EUR 1.6 million (2018: EUR 0.5 million).
This stock exchange release is a summary of Dovre Group Plc’s Half Year Financial Report January 1 - June 30, 2019. The full bulletin is attached to this release and is also available online at -> Investors
Espoo, July 25, 2019
DOVRE GROUP PLC
BOARD OF DIRECTORS
For additional information, please contact:
Dovre Group Plc
Arve Jensen, CEO
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Mari Paski, CFO
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Financial reporting in 2019
Dovre Group releases its remaining financial reports in 2019 as follows:
- Q3 trading statement for January 1 - September 30, 2019 on Thursday, October 24, 2019
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, Singapore and the US, and employs more than 650 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Website
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Nasdaq Helsinki Ltd
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