Financials and outlook


Outlook for 2019

The market is still affected by several uncertainties, including general economic trends, oil price, and political instability. Our main markets are, however, in politically and economically stable countries.
In the Project Personnel business area, demand has improved and the prices are improving slightly. Thanks to a strong portfolio of frame agreements, cost savings already implemented, as well as improving demand, we expect our operating result to improve from 2018.
In the Consulting business area, market outlook remains unchanged.
Outlook for 2019 (published 13 September 2019):
Dovre Group’s net sales in 2019 are expected to improve compared to 2018 (EUR 65.5 million in 2018) and the operating profit is expected to exceed EUR 2.3 million (EUR 0.5 million in 2018).

Outlook was updated on 25 June 2019, when Tech4Hire acquisition was finalized. Tech4Hire is reported as part of the Project Personnel segment. Outlook was updated on 13 September 2019, when the sale of Olari office premises was finalized.

(Updated 11 November 2019)


Short-term risks and uncertainties

In the Project Personnel business area, the Group’s most significant risks still include the cyclicality of our clients’ business. Market developments in Norway are particularly important for Project Personnel due to the business area’s strong position in the Norwegian market. In addition, expansion to new client segments requires expenditure and includes risks. The business area’s other challenges are maintaining its competitiveness and profitability. Project Personnel business is project-based by nature, thus adding an element of uncertainty to forecasting. From time to time there might be a dependency locally on one major project or client. Dovre Group is responsible for the work performed by its consultants. However, the company has no overall responsibility for project delivery.

In the Consulting business area, general economic uncertainty does not affect as directly the demand for the Group’s services. This is mainly due to the fact that one of our main clients, the Norwegian public sector, aims to invest counter-cyclically. Project delivery involves minor risks due to both clients and the Group’s own personnel such as project delays or loss of key personnel.

Dovre Group holds a minority share in SaraRasa Bioindo Pte. Ltd. (Bioindo), a company producing pellets from wood residue. Bioindo’s production unit is located in Indonesia and is thus exposed to high country risk. Other significant risks include risks relating to commercial agreements, especially feedstock purchase and end-product sale agreements. Dovre Group accounts for the investment as a fair value through profit and loss.

The Group’s reporting currency is euro. The Group’s most important functional currencies are the Norwegian crown, the Canadian dollar, the Singaporean dollar, and the United States dollar. Although the Group’s sales and corresponding expenses are mainly in the same currency, currency fluctuations can affect the Group’s net sales and operating result. Foreign currency denominated assets and liabilities can also result in foreign exchange gains or losses. Foreign exchange risks are hedged, when necessary, centrally in the Group.

(Updated March 6, 2019)

Accounting principles

Dovre Group Plc reports on its financial performance in accordance with the International Reporting Standards (IFRS). The accounting principles are presented under the Group Financial Statements in the Annual Report. Link to the Annual Report.

This section includes information on our key financial indicators, future outlook, short-term risks and uncertainties, and accounting principles.