Financials and outlook

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

FINANCIALS

 

OUTLOOK

Negative profit warning: Dovre Group Plc lowers its guidance for 2024

New guidance for 2024 (published on March 12, 2025): Dovre Group’s revenue is expected to be approximately 99 MEUR and the operating profit (EBIT) is expected to be approximately -22 MEUR.

Previous guidance for 2024 (published on February 3, 2025): Dovre Group’s revenue is expected to be approximately 99 MEUR and the operating profit (EBIT) is expected to be approximately -12 MEUR.

The lowered guidance is due to two wind farm projects started by Suvic in Sweden during 2024 that have overrun their cost budgets considerably. Based on the information reported by Suvic’s management, the estimated total losses of the two projects upon completion are EUR 8,7 million and EUR 10 million. The losses are fully booked in the reporting period 2024, while the works continue into the spring of 2025. The additional loss accumulation was mostly related to the time and cost overrun of ground construction, snow removal and de-icing work.

On November 20, 2024, Dovre group announced the sale of its Project Personnel and Norwegian Consulting businesses to NYAB AB. According to the outlook for the retained business only, Dovre Group’s net sales in 2024 were expected to be in the range of 88-93 MEUR and the operating profit (EBIT) was expected to be between -5 and -6 MEUR. In anticipation of the completion of the transaction, Dovre adopts the new structure including only the retained businesses in its financial reporting.

(Updated March 12, 2025)

SHORT-TERM RISKS AND UNCERTAINTIES

 

In the Project Personnel business area, the Group’s most significant risks include the cyclicality of its clients’ business. Market developments in Norway are particularly important for Project Personnel due to the business area’s strong position in the Norwegian market. The new legislation related to temporary hire that came into effect in the second quarter of 2023 in Norway has had negative effects on Dovre’s business since some clients opted to hire in-house staff rather than engage external consultants. Moreover, expanding operations into new customer segments requires investments and exposes the business to risks. Other challenges for the business group include maintaining competitiveness and profitability. The project-based nature of the business group creates uncertainty in predicting its operations. There may be occasional dependence on a single large project or client at the local level. While Dovre Group is responsible for the performance of its consultants, it does not have overall responsibility for project deliveries.

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 the 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 personnel, such as project delays or the loss of key personnel. The new law for temporary hires, as mentioned above, will also have an impact on some of Consulting Norway clients.

In the Renewable Energy business area, Suvic’s normal operations involve various contractual risks depending on the scope of work. These risks are mainly mitigated through tight project controls, insurances and guarantees.

Dovre Group holds a minority share in SaraRasa Bioindo Pte. Ltd. (Bioindo), a company that produces pellets from wood residue. Bioindo’s production unit is 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 the 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 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.

In addition to the above, the current geopolitical situation, high inflation, and high energy prices are also adding risk to our business.

(Updated March 8, 2024)

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.