Dovre Group Plc Financial Statement Release February 23, 2017 at 8.45 am
DOVRE GROUP’S FINANCIAL STATEMENT RELEASE JANUARY 1 – DECEMBER 31, 2016
BREAK EVEN IN AN EXCEPTIONALLY DIFFICULT MARKET SITUATION
Last year’s corresponding period in parentheses. Comparatives for 2015 include Norwegian Petroleum Consulting Group AS (NPC) as part of Dovre Group’s Project Personnel business area as of May 28, 2015.
July-December 2016
- Net sales EUR 36.0 (61.0) million – decline 41%
- Project Personnel: net sales EUR 32.7 (57.8) million – decline 43%
- Consulting: net sales EUR 3.2 (3.2) million – growth 1%
- Operating result EUR -0.1 (-0.3) million. Comparatives for 2015 include a total of EUR 0.7 million of restructuring costs and loss on disposal of the Group’s consulting business in Sweden.
- Result for period EUR -0.9 (-1.3) million, incl. EUR -0.2 (0.2) million of financing items and EUR -0.4 (-1.1) million of the result of the Group’s joint venture SaraRasa.
- Earnings per share EUR -0.01 (-0.01)
- Net cash flow from operating activities EUR 2.2 (5.0) million
January-December 2016
- Net sales EUR 83.8 (115.9) million – decline 28%
- Project Personnel: net sales EUR 76.9 (108.8) million – decline 29%
- Consulting: net sales EUR 6.9 (7.1) million – decline 3%
- Operating result EUR 0.0 (-0.9) million. Comparatives for 2015 include EUR 1.9 million costs due to merger with NPC and loss on disposal of the Group’s consulting business in Sweden.
- Result for the period EUR -1.7 (-2.0) million, incl. EUR -0.7 (0.3) million financing items and EUR -0.8 (-1.3) million of the result of the Group’s joint venture SaraRasa.
- Earnings per share EUR -0.02 (-0.02)
- Net cash flow from operating activities EUR 0.6 (2.0) million
- Board of Directors proposes to the AGM a dividend of EUR 0.01 (0.01) per share.
Outlook for 2017: Operating result is expected to improve compared to 2016.
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 22, 2017.
PATRICK VON ESSEN, CEO:
”I am not satisfied with 2016 net sales or operating result. The year was the decade’s most challenging in the Project Personnel business area. Volumes and margins decreased significantly in H1 and the decline continued in H2, although more gradually. However, our net sales actually grew in Q4 compared to the previous quarter. This gives hope that the market has now reached the bottom.
I am satisfied with our progress with regards the four key strategic targets:
- Our dependence on three main clients has decreased significantly. In 2016, only two clients represented slightly over 10% of the Group’s net sales, respectively. Our client portfolio is considerably more balanced than a year ago.
- Thanks to diversification, our dependence on oil and gas projects has clearly diminished. At the moment, already approximately 40% of our volumes comes from other client segments, i.e. energy, infrastructure and industry projects. In this regard, we have exceeded the target we set previously.
- Investment in client acquisition is paying off. We signed over 20 frame agreements during the year and our frame agreement portfolio is now stronger than ever before.
- We continued cutting fixed costs. Our annual expenses are now approximately EUR 3 million lower than a year ago. These annual savings exceed our set targets.
Our Consulting business had a strong year. Profitability remained high in Norway and improved significantly in Finland.
We will invest even more in sales. We want to be our clients’ project partner in their large investment projects. We continue streamlining and digitalizing our work processes.”
KEY FIGURES
| EUR million | 7-12 2016 | 7-12 2015 | Change % | 1-12 2016 | 1-12 2015 | Change % |
| Net sales | 36.0 | 61.0 | -41.1 | 83.8 | 115.9 | -27.7 |
| Operating result | -0.1 | -0.3 | 65.3 | 0.0 | -0.9 | 100.5 |
| % of net sales | -0.3 % | -0.5 % | 0.0 % | -0.7 % | ||
| Result | -0.9 | -1.3 | 30.5 | -1.7 | -2.0 | 17.0 |
| % net sales | -2.5 % | -2.2 % | -2.0 % | -1.7 % | ||
| Net cash flow from operations | 2.2 | 5.0 | -56.1 | 0.6 | 2.0 | -71.7 |
| Net debt | -4.7 | -5.2 | -9.3 | -4.7 | -5.2 | -9.3 |
| Debt-equity ratio (Gearing), % | -18.3 % | -19.1 % | -4.2 | -18.3 % | -19.1 % | -4.2 |
| Earnings per share, EUR: | ||||||
| Undiluted | -0.01 | -0.01 | 30.5 | -0.02 | -0.02 | 29.7 |
| Diluted | -0.01 | -0.01 | 30.4 | -0.02 | -0.02 | 29.4 |
OUTLOOK FOR 2017
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, market outlook has improved slightly. However, there are no guarantees that the market is on a growth path. Nevertheless, due to new frame agreements and cost savings that have already been implemented we expect operating result to improve from 2016.
In the Consulting business area, market outlook remains unchanged.
We expect the Group’s operating result to improve compared to 2016.
BOARD OF DIRECTORS’ PROPOSAL FOR DIVIDEND
The parent company’s distributable funds were EUR 24,152,536.41 on December 31, 2016. The Board of Directors proposes to the Annual General Meeting to be held on March 30, 2017 that a dividend of EUR 0.01 per share to be paid, corresponding to EUR 1,001,687.69. The amount includes the new shares fully paid and subscribed for with the 2010C option series on February 15, 2017. The Board of Directors further proposes that the dividend is paid to a shareholder who on the record date April 3, 2017 is registered as a shareholder in the company's shareholder register maintained by Euroclear Finland Ltd and that the dividend be paid on April 12, 2017. 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 23, 2017
Dovre Group’s briefing on the company’s financial statements 2016 will be held on Thursday, February 23, 2017, 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, 2016. The complete release is attached to this bulletin and is also available online at www.dovregroup.com -> Investors
Espoo, February 22, 2017
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
Financial reporting in 2017
Dovre Group's annual report 2016, including the financial statements, the report of the Board of Directors, and the company's separate Corporate Governance Statement, will be available on the company’s investor pages www.dovregroup.com -> Investors during week 10.
Dovre Group releases its financial reports in 2017 as follows:
- Q1 trading statement for January 1 – March 31, 2017 on Thursday, April 27, 2017
- Half-year report for January 1 – June 30, 2017 on Thursday, July 27, 2017
- Q3 trading statement for January 1 – September 30, 2017 on Thursday, October 26, 2017
Distribution Nasdaq Helsinki Ltd Major media www.dovregroup.com
