DOVRE GROUP TRADING STATEMENT JANUARY 1 – MARCH 31, 2023
Dovre Group
Plc Stock
exchange
release April
27, 2023, at 9.15 a.m.
DOVRE GROUP TRADING STATEMENT JANUARY 1 – MARCH 31,
2023
Dovre delivered a solid start of the
year
Dovre Group Plc issues today a trading statement for the three
months ended on March 31, 2023. The figures presented in this
trading statement are not audited. Last year’s corresponding period
in parentheses.
January – March 2023
- Net sales EUR 45.8 (47.8) million – decrease 4.3%
- Project Personnel: net sales EUR 24.8 (22.7) million – increase
9.0%
- Consulting: net sales EUR 5.1 (4.4) million – increase
17.1%
- Renewable Energy: net sales EUR 15.9 (20.7) million - decrease
23.2%
- EBITDA EUR 1.9 (1.9) million – increase 1.0%
- Operating profit EUR 1.7 (1.7) million – increase 0.3%
- Profit before tax EUR 1.5 (1.4) million – increase 2.0%
- Profit for the shareholders of the parent company EUR 1.0 (1.1)
million – decrease of 7.0%
- Earnings per share EUR 0.010 (0.010) – decrease of 7.0%
- Net cash flow from operating activities EUR 4.3 (2.0)
million
Outlook for
2023 unchanged
(first published
on February 23,
2023)
Dovre Group`s net sales are expected to improve from 2022 and
the operating profit (EBIT) is expected to be about the same as in
2022.
ARVE JENSEN, CEO:
Dovre Group's net sales decreased by 4.3% to EUR 45.8 million.
Year-on-year fluctuations in foreign currency exchange rates had
impact on the Group’s net sales in Q1. At fixed currencies, the
year-on-year growth of net sales in Q1 would have been 4.9% instead
of decrease of -4.3%. In particular, the weakened Norwegian crown
had the effect of decreasing net sales.
Our operating profit, on the other hand, remained at the
previous year's level, at EUR 1.7 (1.7). Q1 operating profit margin
stood at 3.7% (3.5%).
Project Personnel and Consulting increased their sales
significantly. For Q1, Project Personnel increased its net sales by
9% and Consulting by 17%. Renewable Energy decreased its net sales
by 23%. In Renewable Energy, the seasonality of the business is
stronger than in other segments, with windmill park construction
performed mainly during the summer season. The activity in the wind
park construction market has been lower and delayed in
timeline compared to 2022. Probable reasons are increased cost
of capital and somewhat limited capacity to accept new connection
requests to the National Power Grid System.
The growth in our Project Personnel and Consulting business has
been supported by increased demand for our services, especially in
Norway. By geographical market area, our largest sales increase was
in North America and in EMEA countries.
The Renewable
Energy business, which consists of Suvic Oy's business has become a
significant part of our business. During the review period, Suvic
signed an EPC contract with CPC Finland Oy valued at about 18
million euros to build Lakari solar park. The solar park has a
maximum output capacity of 32 MW and therefore it is the largest
solar park in Finland under construction and when in operation. The
yearly production is estimated to be about 32 000 MWh. The Lakari
project constitutes a significant expansion into a new business
area for Dovre Group.
There are several concerns in our operating environment, such as
the current geopolitical situation and high inflation. At the same
time, the demand for energy is forcing governments and the private
sector to seek new energy-efficient solutions, which we believe
will lead to an increasing demand in all our business areas. The
new legislation for temporary hire in Norway has been implemented
from April 1st. We have seen only minor negative impact from this
legislature to Dovre. In the energy sector, the Unions and our
corporate clients have been able to negotiate amicable solutions to
the requirements of this new legislature. In the public sector,
some of the clients have delayed their inquiries, but due to the
high demand for specialists we are still positive on the market
developments.
NET SALES
In Q1, Dovre Group’s net sales decreased by 4.3% to EUR 45.8
(47.8). Year-on-year fluctuations in foreign currency exchange
rates had impact on the Group’s net sales in Q1. At fixed
currencies, the year-on-year growth of net sales in Q1 would have
been 4.9% instead of decrease of -4.3%.
Project Personnel accounted for 54 (48) percent, Consulting for
11 (9) percent and Renewable Energy for 35 (43) of the Group’s net
sales.
Project Personnel’s net sales increased by 9.0% to EUR 24.8
(22.7) million. Net sales for Consulting increased by 17.1 percent
to EUR 5.1 (4.4) million. Net sales for Renewable Energy decreased
by 23.2 percent to EUR 15.9 (20.7) million.
Net sales
by reporting segment |
1–3 |
1–3 |
Change |
1–12 |
EUR million |
2023 |
2022 |
% |
2022 |
Project
Personnel |
24.8 |
22.7 |
9.0 |
90.6 |
Consulting |
5.1 |
4.4 |
17.1 |
18.2 |
Renewable Energy |
15.9 |
20.7 |
-23.2 |
94.2 |
Group
total |
45.8 |
47.8 |
-4.3 |
203.0 |
OPERATING PROFIT
The Group’s EBITDA in Q1 improved by 1.0% to EUR 1.9 (1.9)
million.
The Group’s operating profit in Q1 improved by 0.3% to EUR 1.7
(1.7) million. Project Personnel’s operating profit was EUR 1.2
(1.1) million, Consulting’s operating profit was EUR 0.6 (0.4)
million and Renewable Energy’s operating profit was EUR 0.2 (0.5)
million. The operating loss of the Group’s Other functions was EUR
0.2 (0.2) million.
Operating
result (EBIT) |
1–3 |
1–3 |
Change |
1–12 |
EUR million |
2023 |
2022 |
% |
2022 |
Project
Personnel |
1.2 |
1.1 |
4.7 |
4.3 |
Consulting |
0.6 |
0.4 |
54.3 |
2.5 |
Renewable
Energy |
0.2 |
0.5 |
-54.9 |
2.7 |
Other
Functions |
-0.2 |
-0.2 |
-21.3 |
-0.7 |
Unallocated *) |
-0.1 |
-0.1 |
46.5 |
-0.3 |
Group
total |
1.7 |
1.7 |
0.3 |
8.5 |
|
|
|
|
|
EBITDA |
1–3 |
1–3 |
Change |
1–12 |
EUR million |
2023 |
2022 |
% |
2022 |
Project
Personnel |
1.3 |
1.3 |
4.9 |
4.7 |
Consulting |
0.6 |
0.4 |
49.3 |
2.5 |
Renewable
Energy |
0.3 |
0.5 |
-47.6 |
2.9 |
Other
Functions |
-0.2 |
-0.2 |
-25.2 |
-0.7 |
Unallocated *) |
0.0 |
-0.1 |
89.7 |
0.0 |
Group
total |
1.9 |
1.9 |
1.0 |
9.5 |
*Unallocated expenses include amortization of customer
agreements and relations.
PERSONNEL
The Dovre Group employed an average of 797 people (795) during
the review period.
On March 31, 2023, Dovre Group employed 807 (796) people, 656
(674) of whom were employed by Project Personnel, 106 (88) by
Consulting, 43 (34) by Renewable Energy and 2 (1) by Other
Functions.
|
1–3 |
1–3 |
Change |
1–12 |
Average number
of employees |
2023 |
2022 |
% |
2022 |
Project
Personnel |
646 |
672 |
-3,8 |
642 |
Consulting |
106 |
89 |
19,7 |
98 |
Renewable
Energy |
43 |
33 |
29,0 |
38 |
Other Functions |
2 |
1 |
100,0 |
1 |
Group
total |
797 |
795 |
0,3 |
779 |
Personnel at
period-end |
31 Mar |
31 Mar |
Change |
31 Dec |
Number of employees |
2023 |
2022 |
% |
2022 |
Project
Personnel |
656 |
674 |
-2,6 |
583 |
Consulting |
106 |
88 |
21,1 |
100 |
Renewable
Energy |
43 |
34 |
26,5 |
43 |
Other Functions |
2 |
1 |
100,0 |
2 |
Group
total |
807 |
796 |
1,4 |
728 |
CASH POSITION
On March 31, 2023, the Group’s net debt was EUR -6.7 (-2.8)
million. The Group’s cash and cash equivalents totaled EUR 13.5
(10.5) million. The Group’s interest-bearing liabilities were at
the comparison period’s level at EUR 6.9 (7.7) million, a total of
EUR 5.8 (5.5) million of which were current and EUR 1.0 (2.2)
million non-current.
In Q1, net cash flow from operating activities increased to EUR
4.3 (2.0) million, which includes EUR 3.5 (0.6) million change in
working capital. Increase in working capital is primarily due to
Renewable Energy business.
OTHER EVENTS DURING THE REVIEW PERIOD
Suvic signed an EPC contract to build a 32 MW solar
farm
In March, Suvic Oy signed an EPC contract with CPC Finland Oy
valued at about 18 million euros to build Lakari solar park. The
solar park has a maximum output capacity of 32 MW and therefore it
is the largest solar park in Finland under construction and when in
operation. The yearly production is estimated to be about 32 000
MWh. The Lakari project constitutes a significant expansion into a
new business area for Dovre Group.
The solar park will be in Lakari, near the city of Rauma, and it
will cover an area of about 40 hectares. The construction work will
commence in the spring of 2023 and the project is expected to be
ready in the beginning of 2024.
With this significant new contract Suvic’s order backlog for
2023 will be about 50 million euros. At the same time Suvic shows
that it can expand into new areas of renewable energy
construction.
Dovre co-founding Renetec Oy, a renewable energy
development company initially focusing on solar powerDovre
continues to execute its strategy in the renewables industry by
founding a project development company Renetec Oy in March together
with top experts in the field, Janne Mielck and Juhani Kanerva.
The company will initially focus on land sourcing, project
development and construction management of new sites for industrial
scale solar power plants, as well as operating and managing parks
already in production. Renetec also offers advisory and consulting,
such as feasibility studies and management consulting for energy
companies, industrial stakeholders, and investors. The company’s
market area is Europe.
Renetec aims to develop projects on its own as well as in
cooperation with other project developers and other stakeholders in
the market. In our view, partnering is an essential success factor
allowing the projects to be run with improved resources,
credibility, and skills.
In Espoo, April 27, 2023
DOVRE GROUP PLCBOARD OF DIRECTORS
For additional information, please contact:
Dovre Group PlcArve Jensen,
CEO tel. +47 90 60
78 11arve.jensen@dovregroup.com
Sirpa Haavisto, CFOtel. +358 20 436
2000sirpa.haavisto@dovregroup.com
DistributionNasdaq Helsinki LtdMajor
mediawww.dovregroup.com
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