Dovre Group Plc Stock exchange release
DOVRE GROUP TRADING STATEMENT
Significant write-down of a single renewable project led to a negative operating profit
January –
- Net sales
EUR 42.3 (45.8) million – decrease 7.6%- Project Personnel: net sales
EUR 25.2 (24.8) million – increase 1.7% - Consulting: net sales
EUR 3.6 (5.1) million – decrease 29.6% - Renewable Energy: net sales
EUR 13.5 (15.9) million - decrease 15.1%
- Project Personnel: net sales
- EBITDA
EUR -4.6 (1.9) million - Operating result
EUR -4.9 (1.7) million - Result before tax
EUR -5.1 (1.5) million - Result for the shareholders of the parent company
EUR -2.4 (1.0) million - Earnings per share
EUR -0.023 (0.010) - Net cash flow from operating activities
EUR -1.9 (4.3) million
Dovre Group’s profitability for the period was clearly negative due to a significant write-down (
Outlook for 2024
Dovre Group’s net sales are expected to be in the range of 185 - 210 MEUR and the Operating Profit (EBIT) is expected to be in the range of 2 - 4 MEUR.
The lower than 2023 EBIT is due to the above mentioned significant one-time write-down of a single renewable project in Q1.
Dovre`s Project personnel and Consulting business areas are expected to decline in both revenue and EBIT compared to 2023 due to the completion of a major project in
In Q1 2024,
Our Project Personnel business area remained highly active. We also successfully implemented restructuring the EMEA unit in
The Consulting business area has been negatively impacted by a slower market in the public sector in
In the Renewable Energy business area, our subsidiary Suvic has had a very busy start of the year due to the commencement of the next phases of the two Swedish windfarm projects (Vitberget and Storhöjden) alongside the existing projects in
As informed in the recent stock release, Outlook for 2024, Suvic has decided to write down a significant loss of 5.8 MEUR for one project. Although the project was technically successful, it exceeded the cost budget considerably. Corrective actions have therefore been taken and Suvic expects the remainder of the year to clearly exceed the comparison period for 2023.
In Q1, Dovre Group’s net sales decreased by 7.6% to
Project Personnel’s net sales increased by 1.7% to
Net sales by reporting segment | 1-3 | 1-3 | Change | 1-12 |
EUR million | 2024 | 2023 | % | 2023 |
Project Personnel | 25,2 | 24,8 | 1,7 | 108,8 |
Consulting | 3,6 | 5,1 | -29,6 | 16,5 |
Renewable Energy | 13,5 | 15,9 | -15,1 | 71,4 |
Group total | 42,3 | 45,8 | -7,6 | 196,7 |
PROFITABILITY
Dovre Group’s profitability for the period was clearly negative due to the above-mentioned significant write-down (
The Group’s EBITDA was
The Group’s operating profit was
Project Personnel’s operating profit was
The operating loss of the Group’s Other functions was
EBITDA | 1-3 | 1-3 | Change | 1-12 | |
EUR million | 2024 | 2023 | % | 2023 | |
Project Personnel | 0,8 | 1,3 | -35,8 | 5,3 | |
Consulting | 0,3 | 0,6 | -39,6 | 1,7 | |
Renewable Energy | -5,6 | 0,3 | 2,0 | ||
Other functions | -0,2 | -0,2 | 19,3 | -0,7 | |
Unallocated *) | 0,0 | 0,0 | 0,0 | 0,0 | |
Group total | -4,6 | 1,9 | 8,4 | ||
Operating result (EBIT) | 1-3 | 1-3 | Change | 1-12 | |
EUR million | 2024 | 2023 | % | 2023 | |
Project Personnel | 0,7 | 1,2 | -40,5 | 4,9 | |
Consulting | 0,3 | 0,6 | -39,7 | 1,7 | |
Renewable Energy | -5,7 | 0,2 | 1,8 | ||
Other functions | -0,2 | -0,2 | 18,7 | -0,7 | |
Unallocated *) | -0,1 | -0,1 | -0,5 | -0,3 | |
Group total | -4,9 | 1,7 | 7,4 | ||
*Unallocated expenses include amortization of customer agreements and relations.
PERSONNEL
The
On
Average number of personnel | 1-3 | 1-3 | Change | 1-12 |
Number of persons | 2024 | 2023 | % | 2023 |
Project Personnel | 669 | 646 | 3,6 | 686 |
Consulting | 80 | 106 | -24,8 | 97 |
Renewable Energy | 60 | 43 | 39,5 | 50 |
Other functions | 3 | 2 | 50,0 | 2 |
Group total | 812 | 797 | 1,9 | 835 |
Personnel at period-end | 31 Mar | 31 Mar | Change | 31 Dec |
Number of persons | 2024 | 2023 | % | 2023 |
Project Personnel | 686 | 656 | 4,6 | 679 |
Consulting | 80 | 106 | -24,5 | 84 |
Renewable Energy | 68 | 43 | 58,1 | 54 |
Other functions | 3 | 2 | 50,0 | 3 |
Group total | 837 | 807 | 3,7 | 820 |
CASH POSITION
On
In Q1, net cash flow from operating activities was
OTHER EVENTS DURING THE REVIEW PERIOD
Suvic has received a Notice to Proceed from the customer for the Storhöjden wind farm and will start the actual construction work in
With this notification, the conditional contract for Storhöjden announced on
Suvic has already completed some design, field surveys and preliminary road alignments in Storhöjden as part of the early works agreement. "The actual work will start with topsoil removal, site mobilisation and quarrying, after which we will build the lifting fields and roadways. The foundations and cabling for the wind turbines are planned to be completed by
The park of 22 wind turbines in Kramfors municipality is part of the
Tricon and Suvic to build a heat pump plant for Fortum in Espoo's Hepokorpi data centre area.
A
The heat pump facility at the Hepokorpi data center utilizes waste heat and ambient air. It includes a recovery building housing heat pumps for heat recovery from the data center, air-to-water heat pumps, and electric boiler. The client for the project is
"The Hepokorvi data centre is optimally located close to the district heating network. It is fantastic that we get to build both Fortum's Kirkkonummi and Espoo heat pump plants. The utilisation of waste heat complements our service portfolio for the construction of carbon dioxide-free energy production, which also includes wind power and solar power plants," says
The waste heat from data centres can replace a significant share of the fossil fuel based heat production in Espoo's district heating network area. In practice, the heat from the data centre's indoor air is transferred through a heat exchanger to water, which flows in a closed loop to the heat pump plant. Heat is transferred from the plant as required to the district heating system and to thousands of homes and other users. The aim is to produce heat from the 2025–2026 heating season onwards.
"The projects in Espoo and Kirkkonummi promote decarbonization, and at the same time, households, services, and businesses receive competitive, clean, and reliable electric-based district heating. Fortum's district heating in
"The site will be ready for installation in spring 2025. The construction of the Hepokorvi heat pump plant will be somewhat more demanding than the construction of the similar plant in Kolabacken, Kirkkonummi. This is due to the soil, the size of the Hepokorvi site and its location between the power lines and Ring III," says
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
hans.sten@dovregroup.com
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