Espoo, Finland, 2011-10-27 07:45 CEST (GLOBE NEWSWIRE) --
Dovre Group Plc Interim report October 27, 2011 at 08:45 a.m.
DOVRE GROUP INTERIM REPORT (IFRS) JANUARY 1 – SEPTEMBER 30, 2011
In Q3/2011, Dovre Group’s net sales grew less than expected, operating result according to target
(Unless otherwise stated, last year’s corresponding period in parentheses.)
SUMMARY
July – September 2011
- Net sales EUR 17.7 (17.4) million – growth 1.7%
- Project Personnel: net sales EUR 15.4 (15.4) million – change -0.4%
- Consulting: net sales EUR 1.4 (1.2) million – growth 20.7%
- Software: net sales EUR 0.9 (0.8) million – growth 15.3%
- Operating result EUR 0.9 (1.8) million – change EUR -0.9 million
- Result for the period EUR 0.8 (1.2) million – change EUR -0.4 million
- Comparable operating result increased by EUR 0.1 million and the result by EUR 0.6 million
- Earnings per share EUR 0.01 (0.02)
- Net cash flow from operating activities EUR 0.6 (-0.3) million
January – September 2011
- Net sales EUR 53.7 (52.2) million – growth 2.8%
- Project Personnel: net sales EUR 46.1 (45.4) million – growth 1.6%
- Consulting: net sales EUR 4.9 (4.3) million – growth 12.2%
- Software: net sales EUR 2.9 (2.7) million – growth 7.0%
- Operating result EUR 4.0 (3.2) million – increase EUR 0.8 million
- Result for the period EUR 2.5 (2.2) million – increase EUR 0.3 million
- Comparable operating result increased by EUR 0.1 million and the result by EUR 0.1 million
- Earnings per share EUR 0.04 (0.04)
- Net cash flow from operating activities EUR 0.2 (1.9) million
Net sales and operating result in 2011 are expected to grow from 2010. The guidance has not been changed.
The interim report is unaudited.
KEY FIGURES
| 7-9 | 7-9 | Change | 1-9 | 1-9 | Change | 1-12 | |
| (EUR million) | 2011 | 2010 | % | 2011 | 2010 | % | 2010 |
| Net sales | 17.7 | 17.4 | 1.7 | 53.7 | 52.2 | 2.8 | 70.8 |
| Operating result | 0.9 | 1.8 | -46.7 | 4.0 | 3.2 | 26.2 | 3.4 |
| % of Net sales | 5.3 % | 10.1 % | 7.4 % | 6.0 % | 4.8% | ||
|
Result for the period |
0.8 | 1.2 | -37.7 | 2.5 | 2.2 | 10.4 | 2.3 |
| % of Net sales | 4.3 % | 7.0 % | 4.6 % | 4.3 % | 3.3% | ||
|
Net cash flow from operations |
0.6 | -0.3 | 270.2 | 0.2 | 1.9 | -92.2 | 3.4 |
|
Debt-equity ratio (Gearing), % |
-26.8 % | -17.3 % | 54.9 | -26.8 % | -17.3 % | 54.9 | -27.2% |
|
Earnings per share, EUR |
|||||||
| Basic | 0.01 | 0.02 | 0.04 | 0.04 | 0.04 | ||
| Diluted | 0.01 | 0.02 | 0.04 | 0.04 | 0.04 | ||
JANNE MIELCK, CEO
In the third quarter of 2011, Dovre Group’s operating result was on the targeted level, but the net sales grew less than expected, increasing by 2% compared to 2010. We did well in Europe and Asia, but did not manage to increase the number of consultants in North America. In addition, our net sales in North America were affected by unfavorable exchange rate fluctuations. Both our Consulting and Software divisions increased their net sales in the third quarter of 2011, by 21% and 15% respectively.
In the third quarter of 2010, gain on disposal of investment in ProCountor International Oy (also: ProCountor) improved the Group’s operating result by EUR 1.0 million. Excluding the gain on disposal of investment in ProCountor, in the third quarter of 2011 the Group’s operating result increased by EUR 0.1 million compared to an overall strong third quarter in 2010. Both Project Personnel and Consulting improved their operating result.
In January – September 2011, the Group’s net sales grew by 3% compared to 2010. All business divisions were ahead of their net sales compared to the corresponding period in 2010.
In January – September 2011, the Group’s operating result was EUR 4.0 million. Excluding the release of the liability from the defined benefit pension plan, the Group’s operating result was EUR 2.3 million. In January – September 2010, the Group’s operating result without the gain on disposal of investment in ProCountor was EUR 2.2 million.
In the third quarter, the Group’s cash and cash equivalents increased by EUR 0.6 million, thus further strengthening the Group’s balance sheet.
FUTURE OUTLOOK
General economic insecurity has not affected investment levels in the Oil and Gas industry, including Project Personnel division’s major customers. Thus, we expect demand for the division’s services to remain stable in key market areas.
Current market outlook in the Nordic countries, an important market for the Group’s Consulting and Software divisions, is positive. However, economic instability in Europe may affect customers’ investment levels in 2012.
We will continue developing the Group in accordance with our strategy and long-term goals.
Net sales and operating result in 2011 are expected to grow from 2010. The guidance has not been changed.
This future outlook is based on forecasts approved by Dovre Group’s Board of Directors.
For additional information, please contact:
DOVRE GROUP PLC
Janne Mielck, CEO
tel. +358-20-436 2000
janne.mielck@dovregroup.com
Dovre Group is a global provider of project management services and software. Dovre Group consists of three divisions: Project Personnel, Consulting, and Software. In 2010, the Group’s net sales were EUR 71 million. Dovre Group employs over 400 people serving clients in 21 countries worldwide.
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