DOVRE GROUP TRADING STATEMENT JANUARY 1 – SEPTEMBER 30, 2023
October 26 2023 - 12:45AM
DOVRE GROUP TRADING STATEMENT JANUARY 1 – SEPTEMBER 30, 2023
Dovre Group
Plc Stock
exchange
release October 26,
2023, at 8.45 a.m. DOVRE GROUP TRADING
STATEMENT JANUARY 1 – SEPTEMBER 30,
2023 Dovre Group Plc issues today a
trading statement for the three months ended on September 30, 2023.
The figures presented in this trading statement are not audited.
Last year’s corresponding period in
parentheses. July – September
2023
- Net sales EUR 52.8 (59.7) million – decrease of -11.6%.
- Project Personnel: net sales EUR 28.8 (22.5) million – increase
of 28.2%.
- Consulting: net sales EUR 3.5 (4.4) million – decrease of
-19.7%.
- Renewable Energy: net sales EUR 20.5 (32.9) million – decrease
of -37.8%.
- EBITDA EUR 2.9 (3.2) million – decrease of -7.2%.
- Operating profit EUR 2.7 (3.0) million – decrease of
-12.1%.
- Profit before tax EUR 2.1 (2.9) million – decrease of
-26.2%.
- Profit for the shareholders of the parent company EUR 1.3 (1.9)
million – decrease of -31.6%.
- Earnings per share EUR 0.012 (0.018) – decrease of
-32.6%.
- Net cash flow from operating activities EUR -3.3 (0.6)
million.
January – September
2023
- Net sales EUR 145.9 (154.9) million – decrease of -5.8%.
- Project Personnel: net sales EUR 79.5 (67.6) million – increase
of 17.6%.
- Consulting: net sales EUR 12.6 (13.3) million – decrease of
-5.5%.
- Renewable Energy: net sales EUR 53.8 (73.9) million – decrease
of -27.2%.
- EBITDA EUR 6.6 (7.0) million – decrease of -4.8%.
- Operating profit EUR 5.9 (6.3) million – decrease of
-6.7%.
- Profit before tax EUR 4.9 (6.0) million – decrease of
-18.8%.
- Profit for the shareholders of the parent company EUR 3.1 (4.1)
million – decrease of -24.0%.
- Earnings per share EUR 0.029 (0.039) – decrease of
-25.6%.
- Net cash flow from operating activities EUR 3,8 (0.0)
million.
Outlook for 2023 unchanged
(issued on 26 June 2023):
Dovre Group’s net sales in 2023 are expected to be
in the range of 185 to 195 million Euros and the operating profit
(EBIT) is expected to be above 7.0 million.
ARVE JENSEN, CEO: In
Q3 2023, Dovre Group posted total net sales of EUR 52.8 million,
reflecting an 11.6% decrease compared to the same period in 2022.
Year-on-year fluctuations in foreign currency exchange rates,
particularly the Norwegian krone, had an impact on the Group’s net
sales in Q3. At fixed rates, the net sales decreased by
6.4%.
Our Project Personnel segment was the outstanding
performer in Q3 and reported a remarkable 28.2% increase in net
sales compared to Q3 2022. By contrast, the Consulting segment
reported a 19.7% decrease and Renewable Energy experienced a 37.8%
decrease in net sales during Q3 2023.
A ransom attack on our Norwegian operations in
late September impacted our financial systems and operational
directories. We have successfully recovered from this incident
without interruption to our services and we used this opportunity
to move our financial systems to be cloud-based. This will yield
lower costs for the financial function in Norway starting from
Q4/2023.
Despite challenges posed by the weak Norwegian
currency and new labor legislation, our Project Personnel division
maintained robust growth. Meanwhile, our Canadian operations
remained active, particularly with a major biodiesel refinery
project. In the Consulting sector, the comparison period in 2022
was at an all-time high, but we have since leveled down from that
peak. This notwithstanding, the Norwegian consulting unit signed a
new multi-year framework agreement with the Ministry of
Finance.
The Finnish wind farm construction market's
sluggish performance in 2023 affected Suvic’s operations throughout
the year. However, Suvic had already diversified its scope in 2022
to encompass other renewable business areas, thus securing new
projects such as the Fortum heat-exchange power plant in
Kirkkonummi and an "early works contract" for two large wind farms
in Sweden during Q3.
Varied performance between the three segments is a
natural part of our business landscape. These fluctuations can be
attributed to market cycles, project timelines, and related
factors. They also highlight the need for continuous adaptability,
prudent risk management, and strategic foresight.
NET
SALES Net sales in
Q3 In Q3, Dovre Group’s net sales decreased
by -11.6% to EUR 52.8 (59.7) million. Project
Personnel accounted for 54 (38) %, Consulting for 7 (7) %, and
Renewable Energy for 39 (55) % of the Group’s net sales.
Project Personnel’s net sales increased by 28.2%
to EUR 28.8 (22.5) million, while net sales for Consulting
decreased by -19.7% to EUR 3.5 (4.4) million. Net sales in
Renewable Energy were also down by -37.8% to 20.5 (32.9) million
euros.
Net sales by reporting segment |
7–9 |
7–9 |
Change |
1–9 |
1–9 |
Change |
1–12 |
EUR million |
2023 |
2022 |
% |
2023 |
2022 |
% |
2022 |
Project Personnel |
28.8 |
22.5 |
28.2 |
79.5 |
67.6 |
17.6 |
90.6 |
Consulting |
3.5 |
4.4 |
-19.7 |
12.6 |
13.3 |
-5.5 |
18.2 |
Renewable Energy |
20.5 |
32.9 |
-37.8 |
53.8 |
73.9 |
-27.2 |
94.2 |
Group total |
52.8 |
59.7 |
-11.6 |
145.9 |
154.9 |
-5.8 |
203.0 |
OPERATING
PROFIT Profitability in
Q3 The Group’s EBITDA in Q3 decreased by
-7.2% to EUR 2.9 (3.2) million. The Group’s operating profit
decreased by -12.1% to EUR 2.7 (3.0) million. Project Personnel’s
operating profit was EUR 1.7 (1.1) million, Consulting’s operating
profit was EUR 0.4 (0.7) million and Renewable Energy’s operating
profit was EUR 0.9 (1.4) million. In Renewable Energy, the weakened
Q3 profitability year-on-year was attributable to the difference in
portfolio of projects. The operating loss of the Group’s Other
functions was -0.2 (-0.2) million.
EBITDA |
7–9 |
7–9 |
Change |
1–9 |
1–9 |
Change |
1–12 |
EUR million |
2023 |
2022 |
% |
2023 |
2022 |
% |
2022 |
Project Personnel |
1.8 |
1.2 |
59.0 |
4.2 |
3.4 |
21.6 |
4.7 |
Consulting |
0.4 |
0.7 |
-42.5 |
1.3 |
1.6 |
-19.5 |
2.5 |
Renewable Energy |
0.9 |
1.5 |
-36.2 |
1.7 |
2.4 |
-27.8 |
2.9 |
Other
Functions |
-0.2 |
-0.1 |
-39.2 |
-0.6 |
-0.4 |
-33.3 |
-0.7 |
Unallocated * |
0.0 |
0.0 |
159.3 |
0.0 |
-0.1 |
75.2 |
0.0 |
Group total |
2.9 |
3.2 |
-7.2 |
6.6 |
7.0 |
-4.8 |
9.5 |
Operating profit |
7–9 |
7–9 |
Change |
1–9 |
1–9 |
Change |
1–12 |
EUR million |
2023 |
2022 |
% |
2023 |
2022 |
% |
2022 |
Project Personnel |
1.7 |
1.1 |
53.7 |
3.8 |
3.2 |
20.0 |
4.3 |
Consulting |
0.4 |
0.7 |
-42.6 |
1.3 |
1.6 |
-19.0 |
2.5 |
Renewable Energy |
0.9 |
1.4 |
-43.9 |
1.6 |
2.3 |
-31.9 |
2.7 |
Other
Functions |
-0.2 |
-0.2 |
-34.2 |
-0.6 |
-0.5 |
-28.7 |
-0.7 |
Unallocated * |
-0.1 |
-0.1 |
8.4 |
-0.2 |
-0.3 |
39.2 |
-0.3 |
Group total |
2.7 |
3.0 |
-12.1 |
5.9 |
6.3 |
-6.7 |
8.5 |
*Unallocated expenses include amortization of
customer agreements and relations.
PERSONNEL In Q3
2023, the average number of employees increased by 14.4%
year-on-year. During January–September, Dovre Group employed an
average of 833 people (789). The average number of employees during
the period increased due to the organic growth of the Project
Personnel and Renewable Energy business areas. On
September 30, 2023, Dovre Group employed 900 (708) people, 746
(563) of whom were employed by Project Personnel, 95 (101) by
Consulting, 57 (42) by Renewable Energy and 2 (2) by Other
functions.
Average number of
personnel |
7–9 |
7–9 |
Change |
1–9 |
1–9 |
Change |
1–12 |
|
2023 |
2022 |
% |
2023 |
2022 |
% |
2022 |
Project Personnel |
723 |
619 |
16.8 |
682 |
653 |
4.4 |
642 |
Consulting |
93 |
99 |
-6.4 |
100 |
97 |
2.7 |
98 |
Renewable Energy |
54 |
42 |
28.6 |
49 |
36 |
34.5 |
38 |
Other
Functions |
2 |
2 |
0.0 |
2 |
2 |
0.0 |
1 |
Group total |
872 |
762 |
14.4 |
833 |
789 |
5.6 |
779 |
Personnel at period-end |
30.9. |
30.9. |
Change |
31.12. |
|
2023 |
2022 |
% |
2022 |
Project Personnel |
746 |
563 |
32.6 |
583 |
Consulting |
95 |
101 |
-5.9 |
100 |
Renewable
Energy* |
57 |
42 |
35.7 |
43 |
Other
Functions |
2 |
2 |
0.0 |
2 |
Group total |
900 |
708 |
27.2 |
728 |
CASH POSITION On
September 30, 2023, the Group’s net debt was EUR -1.7 (1.3)
million. The Group’s cash and cash equivalents totaled EUR 9.2
(7.9) million. The Group’s interest-bearing liabilities were EUR
7.5 (9.2) million, a total of EUR 5.8 (6.2) million of which were
current and EUR 1.7 (3.0) million non-current. In
January – September, net cash flow from operating activities
totaled EUR 3.8 (0.0) million, which includes EUR 0.7 (-5.6)
million change in working capital. The increase in working capital
is mainly due to the decrease in the total amount of advance
payments from projects in progress.
In Espoo, October 26, 2023 DOVRE
GROUP PLC BOARD OF DIRECTORS
For additional information, please
contact:
Dovre Group Plc Arve Jensen, CEO tel.
+47 90 60 78
11 arve.jensen@dovregroup.com Distribution Nasdaq
Helsinki Ltd Major media www.dovregroup.com
- Dovre Group_Q3_Trading Statement
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