Helsinki, Finland, 2013-07-25 07:45 CEST (GLOBE NEWSWIRE) -- Dovre Group Plc Interim report July 25, 2013 at 08:45 a.m.
DOVRE GROUP INTERIM REPORT (IFRS) JANUARY 1 – JUNE 30, 2013
Dovre Group’s operating profit improved from previous quarters. Net sales growth rate remains steady.
(Unless otherwise stated, last year’s corresponding period in parentheses.)
SUMMARY
April – June 2013
- Net sales EUR 25.3 (23.2) million – growth 9%
- Project Personnel: net sales EUR 23.0 (21.0) million – growth 10%
- Consulting: net sales EUR 2.3 (2.2) million – growth 4 %
- Operating result EUR 0.8 (1.1) million, which is 3.3% (4.9%) of net sales
- Result for the period incl. discontinued operations EUR 4.6 (0.9) million
- Earnings per share incl. discontinued operations EUR 0.07 (0.01)
- Net cash flow from operating activities incl. discontinued operations EUR -0.8 (- 0.4) million, excl. discontinued operations EUR -0.6 (-0.8) million
- Change in cash and cash equivalents incl. discontinued operations EUR 2.8 (-1.2) million
January – June 2013
- Net sales EUR 49.7 (45.3) million – growth 10%
- Project Personnel: net sales EUR 45.2 (40.7) million – growth 11%
- Consulting: net sales EUR 4.4 (4.5) million – change -2%
- Operating result EUR 1.1 (2.0) million, which is 2.3% (4.5%) of net sales
- Result for the period incl. discontinued operations EUR 4.8 (1.7) million
- Earnings per share incl. discontinued operations EUR 0.08 (0.03)
- Net cash flow from operating activities incl. discontinued operations EUR -0.7 ( 0.4) million, excl. discontinued operations EUR -0.2 (-0.1) million
- Change in cash and cash equivalents incl. discontinued operations EUR 2.9 (-0.8) million
The Group’s Software business area, which was sold in the second quarter of 2013, has been reported under discontinued operations as of the fourth quarter of 2012 and thus impacts only the Group’s net result. Result for the period, discontinued operations, EUR 4.3 million, includes the discontinued operations’ result for the period and the Group’s gain on disposal.
In 2013, net sales are expected to grow from 2012. In 2013, operating result excluding extraordinary items is expected to remain below 2012 operating result, being 1.5 – 3% of net sales.
The interim report is unaudited.
KEY FIGURES
| 4-6 | 4-6 | Change | 1-6 | 1-6 | Change | 1-12 | |
| (EUR million) | 2013 | 2012 | % | 2013 | 2012 | % | 2012 |
| Net sales | 25.3 | 23.2 | 9.0 % | 49.7 | 45.3 | 9.7 % | 94.1 |
| Operating result | 0.8 | 1.1 | -27.0 % | 1.1 | 2.0 | -44.1 % | 3.4 |
| % of Net sales | 3.3 % | 4.9 % | 2.3 % | 4.5 % | 3.6 % | ||
| Result for the period, incl discontinued operations | 4.6 | 0.9 | 434.8 % | 4.8 | 1.7 | 191.1 % | 2.9 |
| % of Net sales | 18.3 % | 3.7 % | 9.7 % | 3.7 % | 3.0 % | ||
| Net cash flow from operations, incl. discontinued operations | -0.8 | -0.4 | 98.3 % | -0.7 | -0.4 | -268.7 % | 2.8 |
| Net cash flow from operations, continued operations | -0.6 | -0.8 | -19.0 % | -0.2 | -0.1 | 171.6 % | 1.9 |
| Change in cash and cash equivalents, incl. discontinued operations | 2.8 | -1.2 | 335.3 % | 2.9 | -0.8 | 466.2 % | 1.3 |
| Debt-equity ratio (Gearing), % | -41.8 % | -27.6 % | 51.3 % | -41.8 % | -27.6 % | 51.3 % | -27.0 % |
| Earnings per share, EUR (incl. discontinued operations) | |||||||
| Basic | 0.07 | 0.01 | 434.7 % | 0.08 | 0.03 | 191.0 % | 0.05 |
| Diluted | 0.07 | 0.01 | 433.3 % | 0.08 | 0.03 | 190.0 % | 0.05 |
JANNE MIELCK, CEO
Growth in net sales continued in the second quarter of 2013. Our net sales grew 9% compared to the second quarter of 2012. Project Personnel, our biggest business area, increased its net sales by 10% and Consulting by 4%. Geographically, growth in net sales was strongest in Norway.
In the second quarter of 2013, the Group’s operating result took a turn up after previous quarters’ decline. Our operating result was EUR 0.8 million. Project Personnel’s operating result developed as expected. The operating result of the Consulting business area continued falling due to the difficult market situation in Finland and Sweden and the slower than expected development of biorenewables consulting. We have taken further actions to increase profitability.
In the first half of 2013, our net sales grew 10% compared to the first half of 2012. Our biggest business area Project Personnel increased its net sales by 11%, while net sales of the Consulting business area fell by 2%.
Our operating result in the first half of 2013 was approximately half of our operating result in the first half of 2012. Profitability was affected by unexpected expenses in the Project Personnel business area reported in the first quarter as well as the Consulting business area’s challenges.
The Group’s associate SaraRasa Bioindo started renewable fuel production at its production plant in Indonesia in the second quarter of 2013. The plant, which produces pellets using waste biomass sourced from local food industry as feedstock, will have an annual production capacity of approx. 50,000 ton.
The divestment of Safran Software Solutions AS, previously part of the Group’s Software business area, was closed in the second quarter of 2013. The Group recognized a gain on disposal of approx. EUR 4 million.
FUTURE OUTLOOK
General economic insecurity has not affected investment levels among Project Personnel business area’s customers in the Oil and Gas industry and we expect demand for the business area’s services to remain strong in key market areas. Market demand supports opportunities for growth, but the competitive market still creates pressure on profitability.
In the Group’s Consulting business area, current market outlook in Norway remains positive, while market uncertainty in Finland and Sweden affects customers’ investment levels.
We will continue developing the Group in accordance with our strategy, which was released on January 25, 2013.
Guidance for 2013 (released on June 19, 2013): In 2013, net sales are expected to grow from 2012. In 2013, operating result excluding extraordinary items is expected to remain below 2012 operating result, being 1.5 – 3% of net sales.
This future outlook is based on forecasts approved by Dovre Group’s Board of Directors.
Helsinki, July 24, 2013
Dovre Group Plc
Board of Directors
For additional information, please contact
DOVRE GROUP PLC Janne Mielck, CEO tel. +358-20-436 2000 janne.mielck@dovregroup.com
Distribution
NASDAQ OMX Helsinki Ltd Major media www.dovregroup.com
