DOVRE GROUP COMMERCIAL STATEMENT FROM JANUARY 1 TO MARCH 31, 2022

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Dovre Group Plc Press Release April 28, 2022 at 9:15 a.m.

COMMERCIAL STATEMENT OF THE DOVRE GROUP FROM 1 JANUARY TO 31 MARCH 2022

Dover keep on going his growth, positive development in turnover and operating income

Dovre Group Plc is today issuing a business statement for the three months ended March 31, 2022. Figures presented in this business statement are unaudited. Corresponding period of last year in brackets.

January – March 2022

  • Net revenue of €47.8 (19.7) million – 142.7% increase
    • Project Personnel: net turnover of EUR 22.7 (15.4) million – increase of 47.3%
    • Consulting: net revenue of €4.4 (4.3) million – 2.3% increase
    • Renewable energies: net revenue of €20.7 (-) million
  • EBITDA EUR 1.9 (1.0) million – increase of 84.8%
  • Operating profit of EUR 1.7 (0.8) million – increase of 100.7%. The comparison figure in 2021 included €0.1 million of non-recurring expenses related to the acquisition of Suvic.
  • Net cash flow from operating activities EUR 2.0 (0.5) million

Ooutlook for 2022 unchanged (first published February 24, 2022)

The net turnover of the Dovre Group in 2022 is expected to exceed €165 million (2021: €142.7 million). The operating result (EBIT) should be better than last year (2021: 6.1 million euros).

ARVE JENSEN, CEO:

The strong growth of the Dovre Group continued in the first quarter of 2022. Our net sales increased by 142.7% to reach
47.8 million euros and our operating profit more than doubled to 1.7 (0.8) million euros. The growth is mainly attributable to the new renewable energy activity, but also to the 47.3% increase in project personnel activity compared to the comparison period.

Our operating environment was favorable in all three business segments. Project staff increased due to increased demand, particularly in Norway, although the number of employees in the segment clearly decreased during the first quarter following the completion of a major project in Singapore at the end of 2021. We also saw high levels of activity in the consultancy business in Norway. In Consulting Finland, the Proha entity is starting to see synergies between existing products and new eSite services, and steps have been taken to improve profitability.

The renewable energy segment, which includes the activities of Suvic Oy, has been part of the Dovre Group for more than a year now. It has become an important part of our business. During the reporting period, Suvic announced agreements for new wind farm projects at Kalistanneva and Matkussaari in Finland. Following these two projects, we are involved in the construction of a total of eight different wind farms in Finland in 2022. Most of these projects will continue in 2023. In renewable energies, the seasonality of the activity is stronger than in other segments, with wind farm construction carried out mainly during the summer season.

Our operating environment raises several concerns, 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 increased demand in all areas of our business.

We intend to expand our services in the energy sector. In addition, we aim to increase the share of Consulting in our overall business and continue to diversify our offering in this business area to new clients in sectors such as transport, construction, ICT and public sector. All of our operations are focused on profitable growth, ensuring the best professionals for our clients’ projects and maintaining high customer satisfaction. We expect the competitive environment to remain tense and will closely monitor developments in oil prices and other market movements.

NET SALES

In the first quarter, net sales of the Dovre group increased by 142.7% to 47.8 EUR (19.7). Most of the growth, around three quarters, is due to the Renewable Energies business, which was not included in the Group’s figures over the comparison period. The Project Personnel business is also progressing strongly, while growth in consulting is more moderate.

Project personnel accounted for 48 (78) %, consulting 9 (22) % and renewable energies 43 (-) % of the group’s net turnover. Project Personnel net revenue increased by 47.3% to €22.7 (15.4) million and Consulting net revenue increased by 2.3% to €4.4 ( 4.3) million euros. Revenue from Renewable Energies amounted to 20.7 (-) million euros.

Year-on-year fluctuations in exchange rates did not have a significant impact on the Group’s net sales in the first quarter. At fixed currencies, year-over-year growth in net sales in the first quarter would have been 141.4% instead of 142.7%.

Net revenue by reporting segment 1-3 1-3 Switch 1-12
millions of euros 2022 2021 % 2021
Project staff 22.7 15.4 47.3 76.2
Consultant 4.4 4.3 2.3 16.1
Renewable energy 20.7 50.4
Group Sum 47.8 19.7 142.7 142.7

*Renewable energies as of April 1, 2021 (Suvic acquisition).

OPERATING RESULT

Group EBITDA in the first quarter improved by 84.8% to €1.9 (1.0) million. The Group’s operating profit more than doubled to reach 1.7 (0.8) million euros. The operating profit of Project Personnel amounted to EUR 1.1 (0.6) million, the operating profit of Consulting to EUR 0.4 (0.6) million and the profit of operation of Renewable Energy at EUR 0.5 (-) million. In Consulting, the weaker first quarter year-on-year profitability was due to normalized activity levels in Norway. In 2021, the business unit experienced an extraordinarily high level of activity in Norway, with several major projects running in parallel for most of the year.

The operating loss of Other Group functions amounted to -0.2 (-0.3) million euros. The comparison figure in 2021 included €0.1 million of non-recurring expenses related to the acquisition of Suvic.

EBITDA 1-3 1-3 Switch 1-12
millions of euros 2022 2021 % 2021
Project staff 1.3 0.7 84.0 3.3
Consultant 0.4 0.7 -43.5 2.3
Renewable energy* 0.5 2.0
Other functions -0.2 -0.3 46.4 -0.7
Unallocated ** -0.1 0.0 -176.1 0.0
Group Sum 1.9 1.0 84.8 6.9
Operating result (EBIT) 1-3 1-3 Switch 1-12
millions of euros 2022 2021 % 2021
Project staff 1.1 0.6 98.9 2.9
Consultant 0.4 0.6 -44.3 2.3
Renewable energy* 0.5 1.9
Other functions -0.2 -0.3 45.6 -0.7
Unallocated ** -0.1 -0.1 -48.9 -0.3
Group Sum 1.7 0.8 100.7 6.1

*Renewable energies as of April 1, 2021 (Suvic acquisition).
**Unallocated expenses include the amortization of customer contracts and relationships.

STAFF

The Dovre Group employed an average of 795 people (661) during the reporting period. This growth results from the organic growth of the Project personnel activity and the creation of the Renewable energies activity as of March 31, 2021.

As of March 31, 2022, Dovre Group employed 796 (714) people, of which 674 (602) were employed by Project Personnel, 88 (85) by Consulting, 34 (24) by Renewable Energy and 1 (3) by Other Functions. The number of employees increased in all business areas due to the organic growth of the company.

effective method 1-3 1-3 Switch 1-12
Number of persons 2022 2021 % 2021
Project staff 672 572 17.4 685
Consultant 89 86 3.3 88
Renewable energy 33 22
Other functions 1 3 -66.7 2
Group Sum 795 661 20.2 796

Staff at the end of the period

31 Mar 31 Mar Switch 31 Dec
Number of persons 2022 2021 % 2021
Project staff 674 602 11.9 743
Consultant 88 85 2.9 90
Renewable energy 34 24 41.7 32
Other functions 1 3 -66.7 1
Group Sum 796 714 11.5 865

TREASURY

As of March 31, 2022, the Group’s net debt was -2.8 (-1.1) million euros. The Group’s cash and cash equivalents amounted to €10.5 (8.9) million. The Group’s interests are at the level of the period of comparison at 7.7 (7.7) million euros, including 5.5 (4.4) million current euros and 2.2 (3.4) million non-current euros.

In the first quarter, net cash flow from operating activities increased to €2.0 (0.5) million, which includes a change in working capital of €0.6 (-0.3) million. euros. Due to the nature of the business, the evolution of the Group’s cash flows is generally less favorable during the first half.

OTHER EVENTS DURING THE REVIEW PERIOD

New wind farm agreements

Suvic Oy, which forms the Group’s Renewable Energy business area, announced two new wind farm projects during the reporting period.

On February 3, 2022, Suvic Oy announced a major turnkey construction project to construct the Kalistanneva wind farm. Kalistanneva is a joint project between Helen Oy and the Wind Energy Investment Fund of Ålandsbanken. The consortium acquired the project from Valorem Ltd. The contract is to build the infrastructure for 30 wind turbines, including roads, lifting platforms, foundations, a 33/110 kV power plant and the earthworks of the 33 kV internal network.

On February 10, 2022, Suvic announced the signing of a major turnkey construction project for the construction of the Matkussaari wind farm. Matkussaari is a project owned by Valorem Ltd.

Matkussaari and the previously announced Kalistanneva wind farm are called Viiatti, with a combined capacity of 313.5 MW. The contract is to build the infrastructure for 27 wind turbines, including roads, lifting platforms, foundations, a 33/110 kV power plant and the earthworks of the 33 kV internal network. The installed capacity will be 148.5 MW.

Work for the two Viiatti projects started after the review period in April 2022 and they are expected to be mostly completed by December 2023. The last task for the Viiatti entity will be in 2024, when the 33 kV cables will be connected to the windmills.

In Espoo, April 28, 2022

DOVRE GROUP PLC
BOARD OF DIRECTORS
For more information, please contact:

Dovre Group Plc
Arve Jensen, CEO
Phone. +47 90 60 78 11
[email protected]

Sirpa Haavisto, Chief Financial Officer
Phone. +358 20 436 2000
[email protected]

Distribution
Nasdaq Helsinki Ltd
Main media
www.dovregroup.com

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