DOVRE GROUP TRADING STATEMENT JANUARY 1 – MARCH 31, 2018

Dovre Group Plc                        Stock exchange release                                 April 26, 2018 at 8.45 am

DOVRE GROUP TRADING STATEMENT JANUARY 1 – MARCH 31, 2018

SALES STABLE, OPERATING RESULT IMPROVES

Dovre Group Plc issues today a trading statement for the first quarter of 2018. The figures presented in this trading statement are not audited. Last year’s corresponding period in parentheses.

Key highlights January – March 2018:

      ·Net sales EUR 16.4 (17.3) million – decrease 4.9 % (in constant currencies increase 2.1%)
      ·Project Personnel: net sales EUR 15.0 (15.5) million – decrease 3.0 %
      ·Consulting: net sales EUR 1.4 (1.8) million – decrease 20.9 %
      ·Operating result EUR 0.0 (-0.3) million, result in 2017 included EUR 0.3 million of restructuring costs
      ·Net cash flow from operating activities EUR -1.1 (-0.4) million

Outlook for 2018 (unchanged): We expect the Group’s net sales and operating result to improve compared to 2017.

PATRICK VON ESSEN, CEO:

"For Q1 we reported the highest sales in four quarters. The reported sales decreased slightly compared to Q1 of 2017. In constant currencies, however, our sales actually increased somewhat. The sales increased significantly compared to the previous quarter. The reported operating result was the first positive Q1 in four years, and the fourth consecutive positive quarter.

Project personnel: The profitability improved significantly from the previous year. The global demand for project services is improving. In our largest market Norway, volumes are trending up. We are also seeing signs of prices and margins finally starting to recover. In Singapore we typically have large but relatively short projects, resulting in quarter-to-quarter swings in sales and profitability. A long term frame agreement (announced in November) will give us a better base load going forward. In all our markets, our focus is on sales and margins.

Consulting: Compared to the stellar performance in Q1 of 2017, the profitability decreased. With healthier order stocks now both in Norway and Finland, we are well placed to improve.”

OUTLOOK FOR 2018

The market is still affected by several uncertainties, including general economic development, 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, but the price level in the oil and gas industry is still lower than in recent years. 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 2017.

In the Consulting business area, market outlook remains unchanged.

We expect the Group’s net sales and operating result to improve compared to 2017.

NET SALES

In Q1, Dovre Group’s net sales were EUR 16.4 (17.3) million. Project Personnel accounted for 91 (90) % and Consulting for 9 (10) % of the Group’s net sales. Project Personnel’s net sales were EUR 15.0 (15.5) million, while net sales for Consulting totalled EUR 1.4 (1.8) million. The change in net sales compared to Q1/2017 would have been about +2.1 % in constant currencies.

PROFITABILITY

In Q1, the Group’s operating result was EUR 0.0 (-0.3) million. Project Personnel’s operating result was EUR 0.4 (-0.1) million. Consulting business area’s operating result was EUR 0.1 (0.3) million. The operating result of the Group’s Other functions was EUR -0.4 (-0.3) million. In Q1/2017, the Group reported EUR 0.3 million restructuring costs in Project Personnel business area.

PERSONNEL

On March 31, 2018, Dovre Group employed 531 (464) people, 489 (422) of which were employed by Project Personnel, 37 (37) by Consulting and 5 (5) by Other functions.

CASH POSITION

On March 31, 2018, the Group’s net debt was EUR -0.8 (-4.3) million. The Group’s cash and cash equivalents totalled EUR 3.9 (7.4) million. The Group’s interest-bearing liabilities were EUR 3.2 (3.0) million, a total of EUR 2.3 (1.4) million of which were current and a total of EUR 0.9 (1.7) million non-current. In Q1, net cash flow from operating activities was EUR -1.1 (-0.4) million, which includes EUR -1.2 (0.0) million change in working capital.

Espoo, April 25, 2018

Dovre Group Plc
Board of Directors

For additional information, please contact:

Dovre Group Plc
Patrick von Essen, CEO
patrick.essen@dovregroup.com

Mari Paski, CFO
mari.paski@dovregroup.com

tel. +358 20 436 2000
www.dovregroup.com

Dovre Group is a global provider of project management services. Dovre Group has two business areas: Project Personnel and Consulting. Dovre Group has offices in Canada, Finland, Norway, Russia, Singapore, the UAE and the US, and employs more than 500 people worldwide. Dovre Group is listed on the Nasdaq Helsinki (symbol: DOV1V). Company website www.dovregroup.com.

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