Financials and outlook

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

FINANCIALS

 

OUTLOOK

 

Dovre Group Plc raises its net sales and EBIT guidance for 2022.

New guidance for 2022 (published on October 25, 2022): Dovre Group’s net sales in 2022 is expected to be more than EUR 195 million and the operating profit (EBIT) is expected to be above 7,3 million.

Previous guidance for 2022 (published on August 2, 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.

The guidance is raised due to the continued strong demand for Dovre’s services in Project Personnel and Consulting, and also due to the solid execution of Suvic in its Renewable Energy construction projects.

(Updated October 25, 2022)

SHORT-TERM RISKS AND UNCERTAINTIES

 

In the Project Personnel business area, the Group’s most significant risks include the cyclicality of the 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 local dependence 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 have as direct an impact on the demand for the Group’s services. This is mainly due to the fact that one of Group’s 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.

In the Renewable Energy business area, Suvic has in its normal operations various contractual risks depending on the differences in scope of work for each. These risks are mitigated through performance and various guarantees and insurances.

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.

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 US dollar. Although the Group’s sales and corresponding expenses are mainly in the same currency, currency fluctu- ations 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.

(Updated February 24, 2022)

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.