DOVRE GROUP’S FINANCIAL STATEMENT RELEASE 1.1.–31.12.2023:

DOVRE GROUP’S FINANCIAL STATEMENT RELEASE 1.1.–31.12.2023:

The information presented in the report has not been audited.

Dovre Group Plc               Financial Statement Release            February 22, 2024, at 6 p.m.

October–December 2023

• Net sales grew by 5.6% to EUR 50.8 (48.1) million. The growth was driven especially by Project Personnel.
  • Project Personnel: net sales totaled EUR 29.3 (23.0) million – increase of 27.2 %.
  • Consulting: net sales totaled EUR 3.9 (4.8) million – decrease of 19.1%.
  • Renewable Energy: net sales totaled EUR 17.6 (20.2) million – decrease of 13.0%.
• EBITDA was EUR 1.8 (2.5) million – decrease of 28.0%.
• Operating profit was EUR 1.5 (2.1) million – decrease of 28.6%.
• Profit before tax was EUR 1.4 (1.4) million.
• Earnings for the shareholders of the parent company EUR 1.0 (1.1) million.
• Earnings per share were EUR 0.009 (0.010).
• Net cash flow from operating activities totaled EUR -0.1 (2.5) million.

January–December 2023

• Net sales declined by 3.1% to EUR 196.7 (203.0) million.
  • Project Personnel: net sales totaled EUR 108.8 (90.6) million – increase of 20.0%
  • Consulting: net sales totaled EUR 16.5 (18.2) million – decrease of 9.1%.
  • Renewable Energy: net sales totaled EUR 71.4 (94.2) million – decrease of 24.2%.
• EBITDA was EUR 8.4 (9.5) million – a decrease of 11.2%.

• Operating profit was EUR 7.4 (8.5) million – decrease of 12.6%.
• Profit before tax was EUR 6.3 (7.4) million including EUR -1.1 (-1.0) million of finance items.
• Earnings for the shareholders of the parent company was EUR 4.1 (5.2) million – decrease of 21.2%.
• Earnings per share totaled EUR 0.038 (0.049).
• Net cash flow from operating activities was EUR 0.1 (2.6) million.

The Board proposes one cent dividend payable on April 11^th, 2024, and a one cent extra dividend payable by a Board of Director’s decision at the latest on October 31^st, 2024.

Last year’s corresponding period is shown in parentheses. 

OUTLOOK FOR 2024

Dovre Group will release its outlook at the latest along with the trading statement for Q1 on April 25th, 2024. This is due to Suvic’s sales cycle, which is not complete for 2024 as of today. The Project Personnel segment anticipates a potential decrease in demand following a record year in 2023.

POLICY CHANGE OUTLOOK
Publishing the outlook latest in April will be a permanent policy change for Dovre Group.

CEO ARVE JENSEN:

The year 2023 was marked by both challenges and achievements for Dovre Group. Our net sales for the year fell slightly by 3.1% to EUR 196.7 million. Adjusted for currency fluctuations, sales would have increased by 5.6%, with the notable impact stemming from changes in the valuation of the Norwegian currency. This result, while reflecting broader economic uncertainties, also highlights the strong success of our Project Personnel segment, which saw a remarkable 20.0% growth in net sales. Such growth, particularly notable in the final quarter, demonstrates our team's agility and the strong demand for our expertise. Additionally, our active involvement in Canada, where we successfully concluded a substantial renewable project, further contributes to this positive performance.

However, the year was not without trials. The Renewable Energy segment faced downward pressures, with net sales decreasing by 24.2% that were caused by a reduction in the number and size of new projects in the Finnish Renewable Market sector. Meanwhile, Consulting experienced a 9.1% decline in sales, influenced by a slower market owing to new legislation for hire in Norway and a record high comparison period.

Our operating profit experienced a 12.3% decline, primarily stemming from reduced sales. This decrease can also be ascribed to our ongoing investment in future growth areas and our commitment to maintaining a high level of service quality. Moreover, this should be viewed in the context of the broader industry trend, where many players have faced similar obstacles. However, our strategic initiatives – along with a renewed focus on sustainability – have positioned us well to rebound as market conditions improve.

The year 2023 was also one of strategic recalibration. In response to the shifting market conditions, we intensified our focus on sectors showing strong growth potential, particularly in Project Personnel. Our ability to secure new frame agreements and extend existing ones has been central to this segment's success, demonstrating the enduring strength of our relationships and the value of our service offering.
In Q4 we initiated and completed restructuring of our Project Personnel unit in Finland by transferring the main work into the existing Norwegian unit in order to streamline the operations. The changes resulted in a reduction of four staff and the costs involved were booked in 2023.

In Consulting and Renewable Energy, the challenges have prompted a thorough review of our strategies. Our focus has shifted towards refining our approach to these markets, identifying new avenues for innovation, and leveraging our strengths to navigate in the market that lies ahead.

Our commitment to sustainable development was evident in several landmark projects. Suvic Oy, our subsidiary, secured contracts for the construction of one of Finland's largest solar farms in Lapua. Through Suvic Oy’s operations, we are also expanding our reach into Sweden with two major wind farm projects at Storhöjden and Vitberget. We achieved another key milestone with the co-founding of Renetec Oy, a company with a sharp focus on solar power development. This step aligns with our strategic vision of leadership in the renewable energy sector. Financial figures for Renetec are included in the Renewable Energy segment. Additionally, our collaboration with the Norwegian Ministry of Finance for quality assurance in public projects in Norway reflects our versatile expertise and commitment to project management excellence.

Market cyclicality has posed some hurdles but also opportunities for growth and innovation. Our presence in several geographical regions exposes us to varying economic and political climates. Additionally, the ongoing global shift towards renewable energy presents opportunities in balancing our project portfolio. Addressing these risks is central to our strategy. As a result, we are enhancing our risk management frameworks, diversifying our service offerings, and continuously adapting to market demands.

Looking ahead, we approach the future with cautious optimism, recognizing the growing demand for energy solutions and the opportunities it presents, particularly in renewable sources. This demand drives our focus on delivering sustainable solutions and professional services to our clients and stakeholders.

GROUP’S KEY FIGURES

BOARD OF DIRECTORS’ PROPOSAL FOR DISTRIBUTION OF A DIVIDEND

On December 31, 2023, the parent company’s distributable funds were EUR 17.299.588.89

The Board proposes one cent dividend payable on April 11^th, 2024, and a one cent extra dividend payable by a Board of Director’s decision at the latest on October 31^st, 2024.

FINANCIAL REPORTING IN 2024

Dovre Group releases its financial reports in 2024 as follows:

• Trading statement January-March 2024 on Thursday, April 25^th, 2024
• Half-year financial report January-June 2024 on Thursday, August 15^th, 2024
• Trading statement January-September 2024 on Thursday, October 24^th, 2024
  
  

Dovre Group’s Financial Statements 2023 and Annual Report 2023 will be published online at the latest during the week beginning March 4^th, 2024. The Annual Report will include the company’s financial statements, the report of the Board of Directors, the corporate governance statement, and the remuneration report.

The company’s Annual General Meeting is planned to be held on Thursday, April 4, 2024. Dovre Group’s Board of Directors will summon the meeting later.

Espoo, February 22, 2024

DOVRE GROUP PLC
BOARD OF DIRECTORS

For additional information, please contact: 

Arve Jensen
CEO
arve.jensen@dovregroup.com
tel. +47 90 60 78 11

Hans Sten
CFO
hans.sten@dovregroup.com
tel. +358 20 436 2000

Distribution 
Nasdaq Helsinki Ltd 
Major media 
www.dovregroup.com

Attachment

• Dovre Group Plc_FSR_January 1 - December 31 2023_EN