Financials and outlook
Dovre’s Q1 net sales lower with improved operating profit year-on-year – raises quidance.
New outlook for 2021 (issued on April 28, 2021): Dovre Group’s net sales in 2021 is expected to be more than EUR 110 million (2020: 77 million) and the operating profit (EBIT) is expected to be more than EUR 3.5 million (2020: 2.4).
Previous guidance (issued on March 31, 2021): Dovre Group’s net sales in 2021 is expected to be around EUR 110 million (2020: 77 million) and the operating profit (EBIT) is expected to be more than EUR 3 million (2020: 2,4).
(Updated April 28, 2021)
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 19, 2021)
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.