Espoo, Finland, 2015-04-29 07:45 CEST (GLOBE NEWSWIRE) -- Dovre Group Plc Interim report April 29, 2015 at 8.45 a.m.
DOVRE GROUP INTERIM REPORT JANUARY 1 – MARCH 31, 2015
Q1: All time high net sales, operating result negative due to merger related costs
January – March 2015
- Net sales EUR 26.2 (24.7) million – growth 6%, in constant currencies 2%
- Project Personnel: net sales EUR 24.1 (22.9) million – growth 5%
- Consulting: net sales EUR 2.1 (1.8) million – growth 18%
- Operating result EUR -0.1 (0.3) million, which is -0.3 (1.3) % of net sales. Operating result excluding non-recurring items EUR 0.2 (0.4) million, which is 0.8 (1.5) % of net sales
- Result for the period EUR 0.1 (0.1) million
- Earnings per share EUR 0.00 (0.00)
- Net cash flow from operating activities EUR 0.0 (-1.3) million
- The Annual General Meeting approved the purchase of the full share capital of Norwegian Petroleum Consulting Group AS (NPC). The target is to complete the transaction within the first half of 2015.
Dovre Group reviews its guidance for 2015 released on February 12, 2015: Net sales are expected to be at the same level as in 2014. Operating result is expected to improve from 2014. The guidance does not include non-recurring items related to the potential NPC merger nor its impact on net sales or operating result.
Previous guidance: Net sales are expected to be at the same level as in 2014. Operating result is expected to improve from 2014.
PATRICK VON ESSEN, CEO:
“Our net sales growth continued in Q1, reaching an all-time high. Net sales grew both in euros and in constant currencies – a good achievement in a challenging market environment. Operating result in Q1 was negative, mainly due to external advisory services related to a M&A opportunity. We continue to scrutinize costs across the whole organization. During the period under review, the company and the employees agreed to changes that will result in annual cost savings of approx. EUR 0.3 million in Finland. The cost savings will be only partially realized this year and will take full effect from 2016. Measures to improve profitability continue also in other countries.
Demand for project personnel services is weakening, especially in Norway. However, Project Personnel’s net sales increased during the period under review. Project Personnel’s profitability declined compared to Q1/2014. This was mainly due to idle time for consultants in Norway and rate reductions required by clients, but which we were not able to fully offset by cutting our costs. At the same time, investments in future growth – primarily Dovre Club and global sales – were higher than in Q1/2014.
In the Consulting business area, our net sales and operating result improved distinctly from Q1/2014. In particular Norway and Sweden improved compared to the previous year.
In accordance with our focused growth strategy, released in October 2014, our target is to have net sales of EUR 200 million and an operating result exceeding EUR 10 million in 2019. In March we announced a conditional merger with Norwegian Petroleum Consulting Group, which, if completed, will take us significantly closer to our strategic net sales target. We are currently planning merger integration. Our aim is to complete the transaction within the first half of 2015.
The pellet production plant owned by our associate SaraRasa has been relocated to Surabaya. The new location offers more secure and better availability of feedstock, lower production costs, and better logistics. The production is scheduled to restart in the autumn.”
FUTURE OUTLOOK AND GUIDANCE 2015
The market is still affected by several uncertainties, including general economic trends, oil price, and political instabilities. Our main markets are, however, in politically and economically stable countries. Our clients are increasingly cautious about investments and we do not expect global demand to pick up in 2015. With strong focus on sales, we are well placed to continue winning market share in the Project Personnel business area. In the Consulting business area, we have a strong order stock, which includes clients from both the public and the private sectors.
Markets are consolidating and we expect this trend to continue. We expect our relative fixed costs to decrease each year going forward.
Dovre Group reviews its guidance, released on February 12, 2015, for 2015: Net sales are expected to be at the same level as in 2014. Operating result is expected to improve from 2014. The guidance does not include non-recurring items related to the potential NPC merger nor its impact on net sales or operating result.
Previous guidance: Net sales are expected to be at the same level as in 2014. Operating result is expected to improve from 2014.
KEY FIGURES
| EUR million | 1-3 2015 | 1-3 2014 | Change % | 1-12 2014 |
| Net sales | 26.2 | 24.7 | 6.0 | 98.9 |
| Operating result | -0.1 | 0.3 | -121.8 | 1.2 |
| % net sales | -0.3 % | 1.3 % | 1.2 % | |
| Result | 0.1 | 0.1 | -31.9 | 0.3 |
| % net sales | 0.2 % | 0.4 % | 0.3 % | |
| Net cash flow from operations | 0.0 | -1.3 | 103.7 | 1.9 |
| Cash and cash equivalents | 10.5 | 12.1 | -12.8 | 10.3 |
| Debt-equity ratio (Gearing), % | -43.4 % | -52.5 % | -17.3 | -42.2 % |
| Earnings per share, EUR: | ||||
| Undiluted | 0.00 | 0.00 | -32.3 | 0.00 |
| Diluted | 0.00 | 0.00 | -32.1 | 0.00 |
BRIEFING FOR PRESS AND FINANCIAL ANALYSTS
Dovre Group holds a briefing on the Q1/2015 interim report on Wednesday, April 29, 2015 at 10:00 a.m. at Helsinki Bourse Club, Fabianinkatu 14 A, 4th floor.
The CEO’s presentation is available on the company’s website www.dovregroup.com .
This is a summary of Dovre Group Plc’s interim report Jan. 1 – March 31, 2015. The report is attached to this bulletin and is also available on at www.dovregroup.com -> Investors.
Helsinki, April 28, 2015
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. In 2014, the Group's net sales were EUR 98.9 million. Dovre Group employs over 480 people worldwide. Dovre Group has offices in Norway, Canada, the US, the UAE, Russia, Finland and Sweden. Dovre Group is listed on the NASDAQ OMX Helsinki (symbol: DOV1V). Company web site www.dovregroup.com
Distribution NASDAQ OMX Helsinki Ltd Major media www.dovregroup.com
