Dovre Group Plc Stock exchange release October 27, 2021 at
DOVRE GROUP TRADING STATEMENT
Dovre's net sales and operating profit increased in Q3. Positive profit warning - raises guidance for 2021
July –
- Net sales
EUR 46.5 (16.5) million – increase 181.7%- Project Personnel: net sales
EUR 19.4 (13.4) million – increase 44.0% - Consulting: net sales
EUR 3.3 (3.1) million – increase 7.3% - Renewable Energy: net sales
EUR 23.9 (-) million
- Project Personnel: net sales
- Operating profit
EUR 2.7 (0.6) million – increase 340.3%
- Profit for the period
EUR 1.5 (0.4) million – increase of 306.6% - Earnings per share
EUR 0.014 (0.004)
Dovre Group announced onAugust 16, 2021 , the acquisition of eSite Industrial Reality Capture business from Fortum. The transaction expanded Dovre's offering in project consulting.
January –
- Net sales
EUR 100.4 (59.7) million – increase 68.3%- Project Personnel: net sales
EUR 53.4 (48.9) million – increase 9.2% - Consulting: net sales
EUR 11.9 (10.8) million – increase 10.9% - Renewable Energy: net sales
EUR 35.0 (-) million (April – September)
- Project Personnel: net sales
- Operating profit
EUR 4.3 (1.8) million – increase 144.0%. The item includesEUR 0.1 million of non-recurring costs related to Suvic-acquisition.
- Profit for the period
EUR 2.5 (1.5) million – increase of 71.2% - Earnings per share
EUR 0.024 (0.014)
- Net cash flow from operating activities
EUR 1.2 (2.0) million Dovre Group strengthened its renewable energy expertise by acquiring 51% ofSuvic Oy , a Finnish windmill park construction and construction design company, onMarch 31, 2021 .
Outlook for 2021
Positive profit warning:
New Guidance for 2021:
Previous guidance for 2021 (issued on
I am very pleased with Dovre’s development so far this year. In Q3 our net sales increased by 181.7% to 46.5
The growth was mainly driven by the Suvic acquisition that was closed in March, and the favorable development of the new Renewable Energy segment which was established as a result. In addition, the strong performance of Project Personnel and Consulting businesses in Q3 contributed to the growth.
Net sales in our Renewable Energy business totaled
Our ongoing businesses Project Personnel and Consulting performed well too and in Q3 these segments’ combined net sales increased by 37.2% year-on-year. In Project Personnel business the main growth comes from
In Consulting Norway, the positive trend continued also in Q3, and the activity is gradually normalized after finalizing several major projects during H1. In Consulting Finland, the major event was that we continued our business diversification by purchasing industrial reality capture business eSite from Fortum. eSite specializes in 3D-imaging of industrial sites and operating plants to improve project execution and operating plant's performance, and we see it as a promising venture in expanding and strengthening our existing service offering. We expect the value creating impacts of this purchase to be visible in our business from 2022 onward.
To further strengthen our services in
All in all, the first nine months have been very active in Dovre both in terms of business diversification and client projects. The Group’s net sales in January–September were up 59.7% year-on-year and EBIT-margin improved to 4.3 (2.9) %. In addition, we reached a milestone where more than 50% of our sales are now outside oil and gas. With the growth of our business our personnel numbers have also reached a new high at 884 employees at the end of September.
I feel confident that Dovre is on the right growth track. We will continue to work hard to improve our profitability and on integrating the acquired new businesses to Dovre to ensure the best service offering and value added for our clients.
eSITE BUSINESS ACQUISITION
The acquired reality capture services expand Dovre's offering in project consulting and they will also be integrated in
The acquisition had no impact on Dovre's 2021 guidance. The transaction is not expected to cause material non-recurring expenses for Dovre.
Further information on the transaction can be found in the stock exchange releases issued by
Q3 development
In Q3, Dovre Group’s net sales increased by 181.7% to
In the third quarter, the new Renewable Energy segment's share of net sales rose to 51 percent. The segment has grown strongly with the launch of new windmill park projects in the third and second quarters of the year. Renewable Energy's net sales in Q3 totaled
The relative shares of the other segments decreased correspondingly and Project Personnel accounted for 42 (81) percent of net sales and Consulting for 7 (19) percent. Project Personnel’s net sales increased by 44.0% to
Development in January–September
In January–September, Dovre Group’s net sales increased by 68.3% to
Project Personnel accounted for 53 (82) per cent, Consulting for 12 (18) percent and Renewable Energy for 35 (-) percent of the Group’s net sales. Project Personnel’s net sales increased by 9.2% to
Year-on-year fluctuations in foreign currency exchange rates had a minor positive impact on the Group’s net sales in the period under review.
Net sales by reporting segment | 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 |
EUR million | 2021 | 2020 | % | 2021 | 2020 | % | 2020 |
Project Personnel | 19.4 | 13.4 | 44.0 | 53.4 | 48.9 | 9.2 | 62.9 |
Consulting | 3.3 | 3.1 | 7.3 | 11.9 | 10.8 | 10.9 | 14.5 |
Renewable energy | 23.9 | - | - | 35.0 | - | - | - |
Group total | 46.5 | 16.5 | 181.7 | 100.4 | 59.7 | 68.3 | 77.5 |
OPERATING PROFIT
Q3 development
In Q3, the Group’s operating profit was up to
Development in January–September
In January–September, the Group’s operating profit increased to
Operating profit | 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 |
EUR million | 2021 | 2020 | % | 2021 | 2020 | % | 2020 |
Project Personnel | 0.7 | 0.6 | 25.0 | 1.8 | 1.5 | 18.8 | 1.9 |
Consulting | 0.4 | 0.2 | 72.2 | 1.7 | 1.0 | 82.5 | 1.5 |
Renewable Energy | 1.8 | - | - | 1.5 | - | - | - |
Other functions | -0.1 | -0.1 | -13.8 | -0.6 | -0.5 | -9.7 | -0.7 |
Unallocated *) | -0.1 | -0.1 | -9.6 | -0.2 | -0.2 | -6.1 | -0.3 |
Group total | 2.7 | 0.6 | 340.3 | 4.3 | 1.8 | 144.0 | 2.4 |
*) Unallocated expenses include amortization of customer agreements and relations.
PERSONNEL
On
Average number of personnel | 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 |
Number of persons | 2021 | 2020 | % | 2021 | 2020 | % | 2020 |
Project Personnel | 741 | 480 | 54.3 | 654 | 549 | 19.0 | 541 |
Consulting | 88 | 85 | 3.3 | 87 | 86 | 1.6 | 85 |
Renewable Energy | 30 | - | - | 19 | - | - | - |
Other functions | 2 | 3 | -33.3 | 2 | 3 | -21.4 | 3 |
Group total | 861 | 568 | 51.5 | 763 | 638 | 19.5 | 629 |
Personnel at period-end | 30 Sep | 30 Sep. | Change | 31 Dec | Change | |
Number of persons | 2021 | 2020 | % | 2020 | % | |
Project Personnel | 761 | 499 | 52.4 | 521 | 46.0 | |
Consulting | 92 | 86 | 6.4 | 86 | 6.4 | |
Renewable Energy | 30 | - | - | - | - | |
Other functions | 2 | 4 | -50.0 | 3 | -33.3 | |
Group total | 884 | 589 | 50.1 | 610 | 91.8 |
CASH POSITION
On
In January–September, net cash flow from operating activities was
OTHER EVENTS DURING THE REVIEW PERIOD
A new VP in charge of
He transferred to Dovre from Fortum, where he had held various business development projects, including the latest one in charge of eSite development.
Olkkonen reports to CEO
Dovre's subsidiary Suvic started two new major windmill park construction projects in September
The estimated combined value of the two projects is about
In Espoo,
BOARD OF DIRECTORS
For additional information, please contact:
tel. +47 90 60 78 11
arve.jensen@dovregroup.com
tel. +358 20 436 2000
sirpa.haavisto@dovregroup.com
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