DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2022: DOVRE CONTINUED ITS STRONG PROFITABLE GROWTH IN H1 2022
Dovre Group Plc Half-year financial statement August 18, 2022 at 8.45 a.m.
DOVRE GROUP’S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2022: DOVRE CONTINUED ITS STRONG PROFITABLE GROWTH IN H1 2022
The figures presented in this half-year financial report are not audited. Last year’s corresponding period in parentheses. Renewable Energy segment, consisting of the operations of the windmill park construction and construction design company Suvic Oy is fully consolidated in the Group’s financial statements from 1 April 2021 onwards. The non-controlling interest (49%) is presented as a separate line item in the income statements and balance sheet.
April–June 2022
- Net sales grew organically by 38.4% to EUR 47.3 (34.2) million mainly as a result of the strong growth in the Renewable Energy and Project Personnel businesses.
- Project Personnel: net sales EUR 22.4 (18.6) million – increase of 20.2%.
- Consulting: net sales EUR 4.6 (4.4) million – increase of 5.2%.
- Renewable Energy: net sales EUR 20.3 million (11.2) – increase of 81.6%.
- EBITDA EUR 1.9 (1.0) million – increase of 85.1%.
- Operating profit EUR 1.7 (0.8) million – increase of 112.5%.
- Profit before tax EUR 1.7 (0.6) million – increase 173.4%.
- Earnings for the shareholders of the parent company EUR 1.1 (0.3) million – increase of 214.2%.
- Earnings per share EUR 0.010 (0.003).
- Net cash flow from operating activities EUR -2.6 (-2.7) million.
January–June 2022
- Net sales grew by 76.5% to EUR 95.1 (53.9) million. The growth was driven especially by the Renewable Energy business that is included in the Group figures from 1 April 2021 onward following the acquisition of a majority shareholding in the Finnish windmill park construction and construction design company Suvic Oy in March 2021.
- Project Personnel: net sales EUR 45.1 (34.1) million – increase of 32.5%.
- Consulting: net sales EUR 9.0 (8.6) million – increase of 3.8%.
- Renewable Energy: net sales EUR 41.0 (11.2) million – increase of 266.8%. The 2021 comparison period figure is for the period 1 April – 30 June 2021).
- EBITDA increased to EUR 3.8 (2.1) million – increase of 85.0%.
- Operating profit EUR 3.4 (1.6) million – increase of 106.3%.
- Profit before tax EUR 3.1 (1.4) million including EUR -0.2 (-0.2) million of finance items – increase of 121.3%.
- Earnings for the shareholders of the parent company EUR 2.2 (0.9) million – increase of 129.8%.
- Earnings per share EUR 0.020 (0.009).
- Net cash flow from operating activities EUR -0.6 (-2.2) million.
Outlook for 2022 unchanged (issued on 2 August 2022):
Dovre Group’s net sales in 2022 is expected to be more than EUR 185 million and the operating profit (EBIT) is expected to be between EUR 6.5 million and EUR 7.5 million.
CEO ARVE JENSEN:
Favorable market environment supported our growth in the first half of 2022. Our net sales increased by 76.5% to EUR 95.1 million and our operating profit more than doubled to EUR 3.4 (1.6) million. The second quarter was the first directly comparable quarter after the Suvic-acquisition, and during it comparable year-on-year organic net sales growth was 38.4% and operating profit growth was 112.5%. I am delighted to see all our three business segments growing and delivering profitable operating results in the first half of the year.
Approximately 75% of our H1 year-on year growth derives from our Renewable Energy segment, which consists of a majority of Suvic Oy's business that was acquired in March 2021. The segment has growth rapidly, and in H1 2022 Suvic has been involved in building eight different windmill parks in Finland, of which some of the largest projects will continue also in 2023.
Activity levels were high also in our Project Personnel and Consulting businesses. Increased demand for our services, in Norway, supported these segments’ growth. In Project Personnel in Norway, we secured in May, together with our partners, a new frame agreement with Aibel AS, a leading service company within the oil, gas, and offshore wind industries. In addition, several existing clients in Project Personnel and Consulting used their options to extend agreements in 2022. In Consulting Finland, the Proha entity has had high activity and the strengthening of our operations with eSite develops according to plan.
The good development in our operations is an outcome our consultants’ ability to meet and exceed our clients’ expectations. For this, I warmly thank all our employees.
At the same time as our operating environment supports our growth, it continues to possess
several concerns, such as the current geopolitical situation, high inflation, and high oil prices. However, as stated in connection of our profit guidance update on August 2, we expect the demand for Dovre's services to be solid also in the second half of the year.
In mid to long-term, 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. We intend to further expand our services in the energy sector. The focus of all our operations is on profitable growth, ensuring the best professionals for our clients' projects and maintaining high customer satisfaction in order to stay ahead of our industry’s tight competition.
GROUP’S KEY FIGURES
| EUR million | 4–6 2022 | 4–6 2021 | Change % | 1–6 2022 | 1–6 2021 | Change % | 1–12 2021 |
| Net sales | 47.3 | 34.2 | 38.4% | 95.1 | 53.9 | 76.5% | 142.7 |
| EBITDA | 1.9 | 1.0 | 85.1% | 3.8 | 2.1 | 85.0% | 6.9 |
| % of net sales | 4.0% | 3.0% | 4.0% | 3.8% | 4.8% | ||
| Operating result | 1.7 | 0.8 | 112.5% | 3.4 | 1.6 | 106.3% | 6.1 |
| % of net sales | 3.5% | 2.3% | 3.5% | 3.0% | 4.3% | ||
| Profit before taxes | 1.7 | 0.6 | 173.4% | 3.1 | 1.4 | 121.3% | 5.6 |
| % of net sales | 3.6% | 1.8% | 3.3% | 2.6% | 3.9% | ||
| Earnings for the shareholders of the parent company | 1.1 | 0.3 | 214.2% | 2.2 | 0.9 | 129.8% | 3.7 |
| % of the net sales | 2.2% | 1.0% | 2.3% | 1.8% | 2.6% | ||
| Net cash flow from operating activities | -2.6 | -2.7 | 3.2% | -0.6 | -2.2 | -72.6% | 2.3 |
| Net debt | -1.1 | 3.2 | -135.7% | -1.1 | 3.2 | -135.7% | -1.0 |
| Debt-equity ratio (Gearing), % | -3.6% | 12.4% | 129.4% | -3.6% | 12.4% | 129.4% | -3.7% |
| Earnings per share, EUR | |||||||
| Undiluted | 0.010 | 0.003 | 211.2% | 0.020 | 0.009 | 125.5.% | 0.035 |
| Diluted | 0.010 | 0.003 | 211.2% | 0.020 | 0.009 | 125.5 % | 0.035 |
This stock exchange release is a summary of Dovre Group Plc’s Half-Year Financial Report January 1 - June 30, 2022. The full bulletin is attached to this release and is also available online atwww.dovregroup.com-> Investors
Espoo, August 18, 2022
DOVRE GROUP PLC
BOARD OF DIRECTORS
For additional information, please contact:
Dovre Group PLC
Arve Jensen, CEO
[email protected]
tel. +47 90 60 78 11
Sirpa Haavisto, CFO
[email protected]
tel. +358 20 436 2000
Financial reporting in 2022
Dovre Group releases its Q3 trading statement for January 1 – September 30, 2022, on Wednesday, October 26, 2022.
Distribution
Nasdaq Helsinki Ltd
Major media
www.dovregroup.com
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