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Dovre Group Oyj
Interim / Quarterly Report • Aug 15, 2024
3309_ir_2024-08-15_dc9cd43a-da46-4a71-ac2a-031ad730b132.pdf
Interim / Quarterly Report
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Dovre Group Plc Half-year financial statement August 15, 2024 at 9:00 a.m.
DOVRE GROUP'S HALF-YEAR FINANCIAL REPORT 1.1.–30.6.2024
The figures presented in this half-year financial report are not audited. Last year's corresponding period in parentheses. The Suvic subgroup is fully consolidated in the Group's financial statements. The non-controlling interest (49%) is presented as a separate line item in the income statements and balance sheet.
April–June 2024
- Net sales increased 7.5% to EUR 50.9 (47.3) million
- o Project Personnel: net sales EUR 25.3 (25.9) million decrease of 2.4%
- o Consulting: net sales EUR 3.5 (4.0) million decrease of 13.0%
- o Renewable Energy: net sales EUR 22.1 million (17.4) increase of 26.9%
- EBITDA EUR 2.1 (1.8) million increase of 19.7%
- Operating profit EUR 1.9 (1.5) million increase of 25.7%
- Profit before tax EUR 1.7 (1.3) million increase of 30.2%
- Earnings for the shareholders of the parent company EUR 1.0 (0.8) million increase of 32.8%
- Earnings per share were EUR 0.010 (0.007).
- Net cash flow from operating activities was EUR 1.6 (2.9) million
January–June 2024
- Net sales increased by 0.1% to EUR 93.2 (93.1) million
- o Project Personnel: net sales EUR 50.5 (50.7) million a decrease of 0.4%
- o Consulting: net sales EUR 7.1 (9.1) million a decrease of 22.3%.
- o Renewable Energy: net sales EUR 35.6 (33.3) million an increase of 6.9%
- EBITDA was EUR 2.5 million negative (EUR 3.7 million positive)
- Operating result was EUR 3.0 million negative (EUR 3.2 million positive)
- Profit before tax was EUR 3.3 million negative (EUR 2.8 million positive)
- Earnings for the shareholders of the parent company were EUR 1.4 million negative (EUR 1.8 million positive)
- Earnings per share were EUR -0.013 (0.017)
- Net cash flow from operating activities was EUR -0.3 (7.1) million
Dovre Group's profitability for the period was clearly negative due to a significant write-down (5.8 million euros) in a single renewable energy project during Q1. The project was technically successful but exceeded the cost budget considerably. Corrective actions have been taken and Suvic expects the remainder of 2024 to clearly exceed the comparison period of 2023 in both revenue and EBIT.
Outlook for 2024 unchanged (issued on 18 April 2024)
Dovre Group's net sales in 2024 are expected to be in the range of 185 to 210 million euros and the operating profit (EBIT) is expected to be in the range of 2 to 4 million euros.
CEO ARVE JENSEN:
The start of the year 2024 was particularly challenging due to a significant write-down in one of our Renewable Energy projects – undertaken by our subsidiary Suvic Oy. Apart from this setback, the remainder of Dovre Group`s operations have progressed in line with our expectations.
In the Renewable Energy segment, Suvic has commenced work on two new wind farm projects in Sweden and a Heat Pump plant for Fortum in Finland. In addition, Dovre Group has joined a renewable energy consortium in Pyhäsalmi, which encompasses three separate projects. Our initial commitment is to participate in the development of an 85 MW Battery Energy Storage System (BESS), adjacent to the former Pyhäsalmi copper and zinc mine. Our project development company Renetec is advancing several solar projects.
In Project Personnel, the sales have remained strong and are on par with record highs from the previous year. Meanwhile, growth in both EMEA and Singapore has offset the reduction in North American sales following the completion of a big renewable energy project. However, profitability has decreased compared to the previous year, owing to a shift in our project and client portfolio.
In Consulting, the Norwegian market has been less active than last year. The effects of new temporary hiring legislation, which took effect last year, have had a limited impact on the energy sector's activity level thus far. On the other hand, the public sector in Norway has been more noticeably affected, slowing down hiring processes. Furthermore, there has been a decline in public investments across civil construction, transport and ICT. The Finnish market has remained stable, with both the Proha and eSite businesses developing as planned.
We also started the next phase of our sustainability reporting program, aligning with the new CSRD reporting requirements to ensure that we continue to create value through sustainable practices.
Looking ahead, we recognize that uncertainties persist in the global market. Nevertheless, we anticipate strong demand for our services in the second half of the year. In addition, we are proactively implementing measures to enhance operational efficiency and drive sustainable profitability.
GROUP'S KEY FIGURES
| EUR million | 4–6 2024 |
4–6 2023 |
Change % |
1–6 2024 |
1–6 2023 |
Change % |
1–12 2023 |
|---|---|---|---|---|---|---|---|
| Net sales | 50.9 | 47.3 | 7.5 | 93.2 | 93.1 | 0.1 % | 196.7 |
| EBITDA | 2.1 | 1.8 | 18.7 % | -2.5 | 3.7 | 8.4 | |
| % of net sales | 4.1 % | 3.7 % | -2.7 % | 4.0 % | 4.3 % | ||
| Operating result | 1.9 | 1.5 | 23.8 % | -3.0 | 3.2 | 7.4 | |
| % of net sales | 3.6 % | 3.2 % | -3.2 % | 3.4 % | 3.8 % | ||
| Profit before taxes | 1.7 | 1.3 | 30.2 | -3.3 | 2.8 | 6.3 | |
| % of net sales | 3.3 % | 2.8 % | -3.5 % | 3.0 % | 3.2 % | ||
| Earnings for the shareholders of the parent company |
1.0 | 0.8 | 32.8 % | -1.4 | 1.8 | 4.1 | |
| % of the net sales | 2.0 % | 1.6 % | -1.5 % | 1.9 % | 2.1 % | ||
| Net cash flow from operating activities |
1.6 | 2.9 | -45,4 % | -0.3 | 7.1 | 0.1 | |
| Net debt | 3.8 | -6.4 | 3.8 | -6.4 | 1.2 | ||
| Debt-equity ratio (Gearing). % | 11.6 % | -18.5 % | 11.6 % | -18.5 % | 3.1 % | ||
| Earnings per share. EUR | |||||||
| Undiluted | 0.010 | 0.007 | 32.8 % | -0.013 | 0.017 | 0.038 | |
| Diluted | 0.010 | 0.007 | 32.8 % | -0.013 | 0.017 | 0.038 |
NET SALES
Net sales in Q2
During Q2 2024 our net sales reached EUR 50.9 million (EUR 47.3 million), an increase of 7,5% compared to the same quarter last year.
Project Personnel accounted for 54% (54%), while Consulting represented 8% (10%) and Renewable Energy contributed 38% (36%) to the Group's net sales.
Project Personnel's net sales experienced a slight drop of 2.4% totaling EUR 25.3 million (EUR 25.9 million). Consulting net sales decreased by 13.0% and were EUR 3.5 million (EUR 4.0 million). On the other hand, Renewable Energy net sales grew by a remarkable 26.9% and totaled EUR 22.1 million (EUR 17.4 million).
Geographically during Q2 the demand of Dovre Group's services encountered significant changes compared with last year. APAC market area net sales increased by 65.3% whereas the Americas net sales were hit by a 68.1% decrease. EMEA market area net sales developed very positively, showing a growth of 18.9%.
Net sales in H1
Our total net sales for H1 2024 reached EUR 93.2 million, showing a slight increase of 0.1% compared to H1 2023.
Net sales by revenue type demonstrated strong performance in the Renewable Energy segment, which grew by 6.9% in H1 2024. Renewable Energy has during the last 12 months succeeded by systematically seeking growth from the Swedish market.
The Consulting segment on the other hand experienced a 22.3% decrease in net sales. The current market situation in Norway is challenging.
In Project Personnel the sales have remained strong and are on par with the previous year. The growth in both EMEA and APAC has offset the reduction in Americas sales following the completion of a large renewable energy project.
| Net sales by reporting segment | 4–6 | 4–6 | Change | 1–6 | 1–6 | Change | 1–12 |
|---|---|---|---|---|---|---|---|
| EUR million | 2024 | 2023 | % | 2024 | 2023 | % | 2023 |
| Project Personnel | 25.3 | 25.9 | -2.4 | 50.5 | 50.7 | -0.4 | 108.80 |
| Consulting | 3.5 | 4.0 | -13.0 | 7.1 | 9.1 | -22.3 | 16.5 |
| Renewable Energy | 22.1 | 17.4 | 26.9 | 35.6 | 33.3 | 6.9 | 71.4 |
| Group total | 50.9 | 47.3 | 7.5 | 93.2 | 93.1 | 0.1 | 196.7 |
| Net sales by market area | 4–6 | 4–6 | Change | 1–6 | 1–6 | Change | 1–12 |
|---|---|---|---|---|---|---|---|
| EUR million | 2024 | 2023 | % | 2024 | 2023 | % | 2023 |
| EMEA | 43.4 | 36.5 | 18.9 | 77.3 | 74.4 | 3.9 | 152.1 |
| AMERICAS | 2.5 | 7.8 | -68.1 | 6.5 | 13.0 | -50.1 | 30.4 |
| APAC | 5.0 | 3.0 | 65.3 | 9.4 | 5.7 | 63.4 | 14.2 |
| Group total | 50.9 | 47.3 | 7.5 | 93.2 | 93.1 | 0.1 | 196.7 |
Dovre Group's market areas are:
- EMEA: Norway, Middle East, Finland, Sweden
- AMERICAS: Canada, US
- APAC: Singapore
PROFITABILITY
Profitability in Q2
The Group's EBITDA in Q2 was EUR 2.1 (1.8) million. The Group's operating profit increased by 23.8% to EUR 1.9 (1.5) million. Project Personnel's operating profit was EUR 0.7 (0.9) million. Consulting's operating result was EUR 0.2 (0.4) million and Renewable Energy's operating result was EUR 1.1 (0.5) million. The operating result of the Group's Other functions was EUR -0.2 (-0.2) million.
Material and service expenses increased to EUR 19.5 (18.9) million. Employee benefit expenses increased to EUR 27.8 (25.3) million. Other operating expenses totaled EUR 1.4 (1.3) million.
Profitability in H1
The Group's EBITDA in H1 was EUR -2,5 (3.7) million. In H1, the Group's operating result was EUR -3.0 (3.2) million. Project Personnel's operating profit was EUR 1.4 (2.1) million. Consulting operating profit was EUR 0.6 (0.9) million and Renewable Energy's operating result was -4.6 (0.7) million euros. The operating loss of the Group's Other functions was EUR -0.3 (-0.4) million.
Material and service expenses increased to 38.4 (33.4) million euros. Employee benefit expenses increased to EUR 54.6 (52.7) million, reflecting the growth in the number of personnel. Other operating expenses decreased to 2.8 (3.4) million.
| EBITDA | 4–6 | 4–6 | Change | 1–6 | 1–6 | Change | 1–12 |
|---|---|---|---|---|---|---|---|
| EUR million | 2024 | 2023 | % | 2024 | 2023 | % | 2023 |
| Project Personnel | 0.8 | 1.0 | -21.8 | 1.6 | 2.3 | -29.6 | 5.3 |
| Consulting | 0.2 | 0.4 | -35.7 | 0.6 | 0.9 | -38.1 | 1.7 |
| Renewable Energy | 1.2 | 0.6 | 113.2 | -4.5 | 0.8 | 2.0 | |
| Other functions | -0.1 | -0.2 | 22.2 | -0.3 | -0.4 | 20.6 | -0.7 |
| Unallocated *) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||
| Group total | 2.1 | 1.8 | 19.7 | -2.5 | 3.7 | 8.4 |
| Operating result | 4–6 | 4–6 | Change | 1–6 | 1–6 | Change | 1–12 |
|---|---|---|---|---|---|---|---|
| EUR million | 2024 | 2023 | % | 2024 | 2023 | % | 2023 |
| Project Personnel | 0.7 | 0.9 | -22.6 | 1.4 | 2.1 | -32.8 | 4.9 |
| Consulting | 0.2 | 0.4 | -35.6 | 0.6 | 0.9 | -38.1 | 1.7 |
| Renewable Energy | 1.1 | 0.5 | 123.7 | -4.6 | 0.7 | 1.8 | |
| Other functions | -0.2 | -0.2 | 21.4 | -0.3 | -0.4 | 20.0 | -0.7 |
| Unallocated *) | 0.0 | -0.1 | 32.6 | -0.1 | -0.1 | 16.9 | -0.3 |
| Group total | 1.9 | 1.5 | 23.8 | -3.0 | 3.2 | 7.4 |
* Unallocated expenses include amortization of customer agreements and relations.
The earnings for the shareholders of the parent company were EUR -1.4 (1.8) million and the share of the non-controlling interest (holders of the 49% minority in Suvic subgroup) totaled EUR -2.2 (0.2) million.
The Group's earnings per share were EUR -0.013 (0.017). The Group's return on average capital employed before taxes (ROI) was -11.1 (15.1) %.
CASH FLOW, FINANCING, AND INVESTMENTS
On June 30 the Group's balance sheet total was EUR 97.9 (90.3) million. The Group's cash and cash equivalents totaled EUR 10.6 (12.5) million. In addition, the Group has an unused credit limit of EUR 4.0 million.
At the end of June, the equity ratio was 35.1 (41.0) %, and the debt-equity ratio (gearing) was 11.6 (-18.5) %. The interest-bearing liabilities amounted to EUR 14.5 (6.1) million, accounting for 14.8 (6.8) % of the Group's shareholders' equity and liabilities. A total of EUR 11.0 (4.4) million of the Group's interest-bearing liabilities were current and a total of EUR 3.5 (1.7) million were noncurrent.
In H1 2024, net cash flow from operating activities was EUR -0.3 (7.1) million, which includes EUR 3.6 (5.4) million net effect due to a change in net working capital. Net cash flow from investing activities was EUR -1.1 (-0.3) million. Net cash flow from financing activities was EUR 4.3 (-5.0) million.
The balance sheet goodwill totaled EUR 20.2 (19.9) million on June 30, 2024. No indications of impairment exist.
PERSONNEL
During H1 2024, the average number of personnel employed by the Group was 841 (817). The increase in the average number of employees was driven by organic growth in Project Personnel and Renewable Energy businesses.
Project Personnel employed on average 689 (665), Consulting 78 (104) and Renewable Energy 71 (46) people in H1 2024. In the Project Personnel business area 20 (29) % of employees were independent contractors.
| Personnel | 4–6 | 4–6 | Change | 1–6 | 1–6 | Change | 1–12 |
|---|---|---|---|---|---|---|---|
| Average | 2024 | 2023 | % | 2024 | 2023 | % | 2023 |
| Project Personnel | 709 | 684 | 3.7 | 689 | 665 | 3.7 | 686 |
| Consulting | 77 | 101 | -23.8 | 78 | 104 | -24.8 | 97 |
| Renewable Energy | 82 | 50 | 65.1 | 71 | 46 | 53.2 | 50 |
| Other functions | 3 | 2 | 28.6 | 3 | 2 | 38.5 | 2 |
| Group total | 871 | 837 | 4.1 | 841 | 817 | 3.0 | 835 |
The number of people employed at the end of June increased. On June 30, 2024, Dovre Group employed 875 (862) people, 712 (706) of whom were employed by Project Personnel, 75 (99) by Consulting, 85 (55) by Renewable Energy and 3 (2) by other functions.
GROUP MANAGEMENT
There were no changes in the Group Executive Team during H1 2024. At the end of June, Dovre Group's Group Executive Team consisted of Arve Jensen (CEO), Stein Berntsen (President, Consulting) and Hans Sten (CFO).
The Annual General Meeting of 4 April 2024 re-elected Ilari Koskelo, Antti Manninen, Svein Stavelin and Sanna Outa-Ollila as members of the Board of Directors. Convening after the AGM, the Board elected Svein Stavelin as Chairman of the Board and Ilari Koskelo as Vice Chairman.
SHARES, SHAREHOLDERS, AND STOCK OPTIONS
Share capital and trading
Dovre Group Plc has one series of shares. Each share entitles its holder to one vote. Dovre Group Plc's shares are listed on Nasdaq Helsinki Oy.
There were no changes in the share capital or in the number of shares during the review period. On June 30, 2024, Dovre Group's share capital was EUR 9.603.084.48, and the total number of shares was 105.956.494. The average number of shares during the period was 105.956.494 shares.
During H1 2024 altogether 9.4 (8.7) million Dovre Group shares were exchanged on the Nasdaq Helsinki Ltd. corresponding to a trade of approximately EUR 3.5 (5.1) million. The volumeweighted average price of Dovre share was 0.37 (0.59), the lowest quotation was EUR 0.30 (0.47) and the highest was EUR 0.47 (0.56). On June 30, 2024, the closing quotation was EUR 0.34 (0.48). The period-end market capitalization was approximately EUR 36.1 (51.3) million.
Own shares
There were no changes in the number of Dovre Group's treasury shares during the review period. At the end of June 2024. Dovre Group Plc held 236.725 of its own shares, representing approximately 0.22% of all the company's shares and votes.
Shareholders and holdings of the Board of Directors and the CEO
On June 30, 2024, the number of registered shareholders of Dovre Group Plc totaled 5.882 (6.215), including 8 (8) nominee-registered holders. The share of foreign and nominee-registered shares was 4.0 (5.8) % of the Group's shares.
On June 30, 2024, members of the Group's Board of Directors and the CEO held including holdings through controlled companies and family members living in the same household, a total of 9.034.265 (8.824.610) shares in the company, representing 8.5 (8.3) % of all shares.
| Name | Shares. pcs | Percentage of shares |
|---|---|---|
| Svein Stavelin | 396.268 | 0.4 |
| Ilari Koskelo | 7.485.000 | 7.1 |
| Antti Manninen | 533.485 | 0.5 |
| Sanna Outa-Ollila | 45.392 | 0.0 |
| Board members total | 8.460.145 | 8.0 |
| CEO Arve Jensen | 574.120 | 0.5 |
| Total | 9.034.265 | 8.5 |
Holdings of Board of Directors and CEO 30.6.2024
Shareholder agreements
Dovre is not aware of any shareholder agreements pertaining to share ownership or the use of voting rights.
Long-term incentive plans
The long-term incentive program has been extended to 2022-2025. The remuneration is based on annually set performance conditions and the key metric is operating profit. The remuneration can be paid in shares or cash subject to the Board's decision. The executive is responsible for personnel income tax on awards. The shares or cash will be awarded when the vesting period ends at the beginning of 2025.
ANNUAL GENERAL MEETING AND THE AUTHORIZATIONS OF THE BOARD OF DIRECTORS
Dovre Group Plc's Annual General Meeting (AGM) was held on April 4, 2024. The AGM adopted the financial statements and consolidated financial statements for 2023 and discharged the members of the Board of Directors and the CEO from liability for the financial year ending on December 31, 2023.
The Annual General Meeting also decided on the composition and remuneration of the Board of Directors, the election of the auditor, the authorization of the Board of Directors to decide on the repurchase of the Company's own shares and on the issuance of shares as well as the issuance of other special rights entitling to shares.
The Annual General Meeting decided, in accordance with the Board's proposal that a dividend of EUR 0.01 per share be paid for the financial year 2023 on April 15, 2024, to a shareholder who
on the record date April 8, 2024, is registered in the Company's shareholder register maintained by Euroclear Finland Ltd.
The Annual General Meeting also decided, in accordance with the Board's proposal that was amended before the Annual General Meeting, that an extra dividend of EUR 0.01 be paid on October 31, 2024. This extra dividend is paid to a shareholder who on the record date that is determined later by the Board of Directors, is registered in the Company's shareholder register maintained by Euroclear Finland Ltd.
In accordance with the Board´s proposal, the Annual General Meeting resolved to approve the remuneration report for the financial year of 2023.
The Annual General Meeting decided that the number of Board members be set at four (4). Svein Stavelin, Ilari Koskelo, Antti Manninen and Sanna Outa-Ollila were re-elected as members of the Board.
The Annual General Meeting resolved that the chairman of the Board is paid EUR 40.000,00 the vice chairman of the Board EUR 33.000,00, and each other member of the Board EUR 25.000,00 per year. The annual compensation is to be paid in cash. In addition, reasonable travel expenses are also compensated.
Authorized Public Accountant
The Annual General Meeting elected the Authorized Public Accountant entity BDO Oy as the Company's auditor. BDO Oy has informed that Authorized Public Accountant Henrik Juth will be the principal auditor. The auditor's fee shall be paid according to the approved invoice of the auditor.
The Annual General Meeting authorized the Board of Directors to decide on the repurchase of the Company's own shares on the following conditions: the Board is entitled to decide on repurchase of a maximum of 10 100 000 of the Company's own shares, which shall be repurchased in deviation from the proportion to the holdings of the shareholders using the nonrestricted equity and acquired through trading at the regulated market organized by Nasdaq Helsinki Ltd at the share price prevailing at the time of acquisition. This number of shares corresponds to approximately a maximum of 9.5% of the total number of shares in the Company. The shares may be repurchased in order to be used as consideration in possible acquisitions or other arrangements related to the Company's business, to finance investments or as part of the Company's incentive program or to be held, otherwise conveyed or cancelled by the Company. The Board of Directors shall decide on other matters related to the repurchase of the Company's own shares. This repurchase authorization is valid until June 30, 2025, and revokes earlier repurchase authorizations.
The Annual General Meeting authorized the Board of Directors to decide on the issuance of new shares and/or the conveyance of own shares held by the Company and/or the granting of special rights referred to in Chapter 10, Section 1 of the Finnish Companies Act on the following conditions: By virtue of the authorization, the Board may also decide on a directed issue of shares and special rights, i.e. waiving the pre-emptive subscription rights of the shareholders, under the requirements of the law. By virtue of the authorization, a maximum of 10 100 000 shares may be issued, corresponding to approximately a maximum of 9.5% of the Company's existing shares.
The Board may use the authorization in one or more instalments. The Board may use the authorization to finance or conclude acquisitions or other arrangements, to strengthen the Company's capital structure, to incentive programs or other purposes decided by the Board. The new shares may be issued, or the Company's own shares conveyed either against payment or free of charge. The new shares may also be issued as an issue without payment to the Company itself. The Board was authorized to decide on other terms of the issuance 5, of shares and special rights. By virtue of the authorization, the Board of Directors may decide on the realization of the Company's own shares possibly held by the Company as pledge.
The authorization is valid until June 30, 2025. The authorization revokes earlier authorizations to issue shares and grant option rights and other special rights entitling to shares.
The minutes of the Annual General Meeting will be available on the Company's website at www.dovregroup.com
BUSINESS SEASONALITY
Dovre Group's Renewable Energy business has stronger seasonality than the other two businesses because most of its projects are carried out during the summer months. As the segment fixed costs spread evenly throughout the year, its operating profit is seasonally at its lowest in Q1 and at its highest in Q3.
The Project Personnel and Consulting businesses are carried out more evenly during the year with limited seasonal variations.
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. In addition, expansion into new client segments requires expenditure and includes risks. The business area's other challenges are found in maintaining its competitiveness and profitability. The 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 because 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 own personnel, such as project delays or the 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 and SENS Storage AB. SaraRasa (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
commercial agreements, especially feedstock purchase and end-product sale agreements. Dovre Group Plc holds 19.9% of SaraRasa's shares and presents the ownership as a financial asset at fair value through profit and loss.
SENS Storage AB is a startup company, which develops an 85 MW Battery as an Energy Storage System (BESS) adjacent to the former Pyhäsalmi copper and zinc mine. This development project is part of Callio renewable energy consortium in Pyhäsalmi, which aims to implement in the future also two other energy projects. Dovre Group Plc holds 45.0% of the company's shares and presents the ownership as a financial asset at fair value through profit and loss.
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 results. Foreign currencydenominated 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.
OTHER EVENTS DURING THE REVIEW PERIOD
Suvic AB, a subsidiary of Suvic Oy, has received a Notice to Proceed for the Storhöjden wind farm
Suvic has received a Notice to Proceed from the customer for the Storhöjden wind farm and will start the actual construction work in Sweden. The work will be carried out by Suvic AB, a wholly owned Swedish subsidiary of Suvic Oy.
With this notification, the conditional contract for Storhöjden announced on 20.12.2023 thus becomes a BoP contract.
Suvic has already completed some design, field surveys and preliminary road alignments in Storhöjden as part of the early works agreement. "The actual work will start with topsoil removal, site mobilisation and quarrying, after which we will build the lifting fields and roadways. The foundations and cabling for the wind turbines are planned to be completed by December 2024," says Olli Niemelä, COO of Suvic's Swedish site operations, explaining the construction schedule for the park.
The park of 22 wind turbines in Kramfors municipality is part of the High Coast project. The BoP is being made with Adalen and HC Wind – SPVs launched by Renewable Power Capital Ltd. (RPC). Headquartered in London, RPC is backed by CPP Investment Board and was founded in 2020 to develop, construct, own and operate renewable energy and industrial scale storage projects across Europe.
Tricon and Suvic to build a heat pump plant for Fortum in Espoo's Hepokorpi data centre area
A Working Association of Tricon and Suvic is building a heat pump plant recovering waste heat for Fortum's district heating network in the future data centre area of Espoo. Together with the previously announced heat pump plant in the Kolabacken data centre area of Kirkkonummi, the project will create an unprecedented scale of waste heat utilization.
The heat pump facility at the Hepokorpi data center utilizes waste heat and ambient air. It includes a recovery building housing heat pumps for heat recovery from the data center, air-towater heat pumps, and electric boiler. The client for the project is Fortum Power and Heat Ltd.
"The Hepokorpi data centre is optimally located close to the district heating network. It is fantastic that we get to build both Fortum's Kirkkonummi and Espoo heat pump plants. The utilisation of waste heat complements our service portfolio for the construction of carbon dioxide-free energy production, which also includes wind power and solar power plants," says Ville Vesanen, CEO of Suvic, about the project.
The waste heat from data centres can replace a significant share of the fossil fuel-based heat production in Espoo's district heating network area. In practice, the heat from the data centre's indoor air is transferred through a heat exchanger to water, which flows in a closed loop to the heat pump plant. Heat is transferred from the plant as required to the district heating system and to thousands of homes and other users. The aim is to produce heat from the 2025–2026 heating season onwards.
"The projects in Espoo and Kirkkonummi promote decarbonization, and at the same time, households, services, and businesses receive competitive, clean, and reliable electric-based district heating. Fortum's district heating in Finland will be carbon-free by 2024 and carbon-neutral before 2030," summarizes the benefits of the project Teemu Nieminen, Project Director from Fortum's Heating and Cooling Business.
"The site will be ready for installation in spring 2025. The construction of the Hepokorpi heat pump plant will be somewhat more demanding than the construction of the similar plant in Kolabacken, Kirkkonummi. This is due to the soil, the size of the Hepokorpi site and its location between the power lines and Ring III," says Jukka Kallio of Suvic, project manager for both projects.
Suvic AB, a subsidiary of Suvic Oy, has received a Notice to Proceed for the Vitberget wind farm
Suvic has received a Notice to Proceed from the customer for the Vitberget wind farm and will start the actual construction work on site. The work will be carried out by Suvic AB, a wholly owned Swedish subsidiary of Suvic Oy.
With this notification, the conditional contract for Vitberget announced on December 20, 2023, thus becomes a BoP contract.
Suvic's CEO Ville Vesanen says that the preparations for the work have gone well in cooperation with the client. "The site is about to start deforestation, which will be carried out by Svenska Cellulosa Aktiebolaget SCA, while VTG Entreprenad AB is our partner for civil works. We are fortunate to have been able to find a number of talented professionals with wind energy
construction experience in the vicinity of the wind farm. Suvic AB has also been well received by the local community, for which we are of course grateful. For our part, the work is largely scheduled for completion in December 2024, and the summer will be a busy construction period," Vesanen sums up the project news.
The park of 24 wind turbines in Kramfors municipality is part of the High Coast project. The BoP is being made with Adalen and HC Wind – SPVs launched by Renewable Power Capital Ltd. (RPC). Headquartered in London, RPC is backed by CPP Investment Board and was founded in 2020 to develop, construct, own and operate renewable energy and industrial scale storage projects across Europe.
Dovre joins the Pyhäsalmi renewable energy consortium's 85 MW BESS solution
Dovre Group joins the Callio renewable energy consortium in Pyhäsalmi consisting of three separate projects. Dovre's first commitment is to participate in developing an 85 MW Battery as an Energy Storage System (BESS) adjacent to the former Pyhäsalmi copper and zinc mine. The next two projects under the development of Callio are photovoltaic solar parks (PV) and an Underground Pumped Hydroelectric Storage (UPHS) facility in the actual mine, both for which Dovre has an option and interest to participate in.
The consortium will consist of Callio development company owned by the municipality of Pyhäsalmi, the Sustainable Energy Solutions Sweden Holding AB (publ) and Dovre Group Plc. The investment of Dovre is sufficient to maintain and further develop the BESS project to a Ready to Build (RTB) phase, as well as the UPHS project until such time that final decision must be made regarding the UPHS construction project later this year. The UPHS provides much higher efficiency rate compared to hydrogen storage systems and has raised large interest among the investors for the actual construction project.
Ilari Koskelo, Vice Chairman of Dovre, comments:
"For the past few years Dovre's focus in the Finnish market has been in the renewable energy development and construction business together with group companies Renetec Oy and Suvic Oy. I believe that the concentration of different renewable energy opportunities in the Pyhäsalmi area is innovative and provides energy production efficiency for Dovre and other market participants now and in the future."
Henrik Boman, CEO of SENS, comments:
"We are excited to have Dovre Group Plc join our consortium as we see the formation of a new energy cluster in Finland. Their participation validates the appeal and effectiveness of SENS's solutions and expertise. With this partnership, we are entering the Finnish market confidently, supported by the trust our partners place in us. We are enthusiastic about our role in delivering sustainable energy storage to the region and contributing to its clean energy future."
DOVRE GROUP PLC OUTLOOK FOR YEAR 2024
In 2024 our revenue is expected to be in the range of 185 - 210 MEUR and the Operating Profit (EBIT) is expected to be in the range of 2 - 4 MEUR.
The lower than 2023 EBIT is due to a significant one-time write-down (approx. 6 million euros) of a single renewable project in Q1. The project was technically successful but exceeded the cost budget considerably. Corrective actions have been taken and Suvic expects the remainder of the 2024 to clearly exceed the comparison period of 2023 in both revenue and EBIT.
Dovre`s Project personnel and Consulting business areas are expected to decline in both revenue and EBIT compared to 2023 due to the completion of a major project in Canada and somewhat slower activity in the Norwegian public sector.
EVENTS AFTER THE REVIEW PERIOD
There have been no major events after the review period.
Espoo. August 15, 2024
DOVRE GROUP PLC BOARD OF DIRECTORS
For additional information. please contact:
Dovre Group PLC
Arve Jensen, CEO [email protected] tel. +47 90 60 78 11
Hans Sten, CFO [email protected] tel. +358 20 436 2000
Financial reporting in 2024
Dovre Group releases its Q3 trading statement for January 1 – September 30, 2024, on Thursday, October 24, 2024.
Distribution Nasdaq Helsinki Ltd Major media www.dovregroup.com
The figures presented in this half-year financial report are not audited.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
| EUR thousand 2024 2023 % 2023 NET SALES 93.161 93.106 0.1 196.710 Other operating income 146 59 496 Material and services -38.394 -33.372 -15.0 -74.272 Employee benefit expenses -54.647 -52.732 -3.6 -109.387 Depreciation and amortization -499 -492 -1.4 -981 Other operating expenses -2.789 -3.369 17.2 -5.184 OPERATING RESULT -3.022 3.200 7.382 Financing income 247 306 -19.3 764 Financing expenses -527 -737 28.5 -1.841 RESULT BEFORE TAX -3.585 2.769 6.305 Tax on income from operations -283 -788 64.1 -1.709 RESULT FOR THE PERIOD -3.585 1.981 4.596 RESULT FOR THE PERIOD ATTRIBUTABLE TO: Equity holders of the parent -1.365 1.813 4.061 Non-controlling interest -2.220 168 535 Total -3.585 1.981 4.596 EARNINGS PER SHARE FOR RESULT ATTRIBUTABLE TO THE EQUITY HOLDERS OF THE PARENT Basic. result for the period -0.013 0.020 0.038 Diluted. result for the period -0.013 0.020 0.038 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME. IFRS RESULT FOR THE PERIOD -3.585 1.981 4.596 OTHER COMPREHENSIVE INCOME Other comprehensive income to be classified to profit or loss in subsequent periods: Translation differences 285 -1.822 -1.432 Other comprehensive income for the period. 285 -1.822 -1.432 net of tax TOTAL COMPREHENSIVE INCOME FOR THE -3.300 159 3.164 PERIOD COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: Equity holders of the parent -1.080 -8 2.629 Non-controlling interest -2.220 168 535 Total -3.300 159 3.164 |
1–6 | 1–6 | Change | 1–12 |
|---|---|---|---|---|
| Average number of shares 1–6 1–6 1–12 |
||||
| 2024 2023 2023 |
||||
| Basic 105.956.494 105.956.494 105.956.494 |
||||
| Diluted 105.956.494 105.956.494 105.956.494 |
| Number of shares. period end | 30 Jun 2024 | 30 Jun 2023 | 31 Dec 2023 |
|---|---|---|---|
| Basic | 105.956.494 | 105.956.494 | 105.956.494 |
| Diluted | 105.956.494 | 105.956.494 | 105.956.494 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
| EUR thousand | 30 Jun | 30 Jun | Change | 31 Dec |
|---|---|---|---|---|
| 2024 | 2023 | % | 2023 | |
| ASSETS | ||||
| Non-Current assets | ||||
| Intangible assets | 1.844 | 2.074 | -11.1 | 2.013 |
| Goodwill | 20.178 | 19.887 | 1.5 | 20.270 |
| Tangible assets | 5.096 | 2.384 | 113.8 | 4.722 |
| Financial assets | 2.902 | 1.854 | 56.5 | 1.881 |
| Deferred tax assets | 216 | 326 | -33.7 | 319 |
| Non-Current assets | 30.236 | 26.526 | 14.0 | 29.256 |
| Current assets | ||||
| Inventories | 6.030 | 1.854 | 225.2 | 6.747 |
| Trade receivables and other receivables | 50.944 | 49.456 | 3.0 | 44.076 |
| Tax receivable. income tax | 103 | 1 | 10.200 | 0 |
| Cash and cash equivalents | 10.625 | 12.495 | -20.5 | 7.907 |
| Current assets | 67.702 | 63.806 | 5.0 | 58.730 |
| TOTAL ASSETS | 97.938 | 90.332 | 8.4 | 87.986 |
| EQUITY AND LIABILITIES | ||||
| Equity attributable to the equity holders of the parent | ||||
| Share capital | 9.603 | 9.603 | 0.0 | 9.603 |
| Reserve for invested non-restricted equity | 14.066 | 14.066 | 0.0 | 14.066 |
| Fair value reserve | 2.869 | 2.869 | 0.0 | 2.869 |
| Treasury shares | -237 | -237 | 0.0 | -237 |
| Translation differences | -3.709 | -4.383 | 15.4 | -3.994 |
| Retained earnings | 12.335 | 12.509 | -1.4 | 14.757 |
| Total equity attributable to the equity holders of the parent |
34.926 | 34.427 | 1.5 | 37.063 |
| Non-controlling interest | -1.889 | 62 | 331 | |
| Equity | 33.037 | 34.489 | -4.2 | 37.394 |
| Non-current liabilities | ||||
| Deferred tax liability | 951 | 926 | 2.7 | 951 |
| Non-current liabilities. interest-bearing | 3.478 | 1.668 | 108.5 | 3.644 |
| Non-current provisions | 1.053 | 1.252 | -15.9 | 891 |
| Other non-current liabilities | 390 | 390 | 0,0 | 390 |
| 5.872 | 4.236 | 38.6 | 5.876 | |
| Other non-current liabilities | ||||
| Current liabilities | ||||
| Short-term liabilities. interest-bearing | 10.989 | 4.439 | 147.6 | 5.433 |
| Trade payables and other liabilities | 47.930 | 46.488 | 3.1 | 38.320 |
| Tax liability. income tax | 110 | 680 | -83.8 | 962 |
| Current liabilities | 59.029 | 51.606 | 14.4 | 44.715 |
| TOTAL EQUITY AND LIABILITIES | 97.938 | 90.332 | 8.4 | 87.986 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY. IFRS
- a. Share Capital
- b. Reserve for non-restricted equity
- c. Fair value reserve
- d. Treasury shares
- e. Translation differences
- f. Retained earnings
- g. Shareholders' equity total
- h. Non-controlling interest
- i. Total
| EUR thousand | a) | b | c) | d) | e) | f) | g) | h) | i) |
|---|---|---|---|---|---|---|---|---|---|
| SHAREHOLDERS' EQUITY Jan. 1. 2024 | 9.603 | 14.066 | 2.869 | -237 | -3.994 | 14.757 | 37.063 | 331 37.394 | |
| Comprehensive income | |||||||||
| Result for the period | -1.365 | -1.365 | -2.220 | -3.585 | |||||
| Other comprehensive income Items that may be reclassified to profit and loss in subsequent periods: |
|||||||||
| Translation differences | 285 | 285 | 285 | ||||||
| Total comprehensive income | 0 | 0 | 0 | 0 | 285 | -1.365 | -1.080 | -2.220 | -3.300 |
| Dividend distribution | -1.057 | -1.057 | |||||||
| SHAREHOLDERS' EQUITY Jun 30. 2024 | 9.603 | 14.066 | 2.869 | -237 | -3.709 | 12.335 | 34.926 | -1.889 33.037 |
| EUR thousand | a) | b) | c) | d) | e) | f) | g) | h) | i) |
|---|---|---|---|---|---|---|---|---|---|
| SHAREHOLDERS' EQUITY Jan. 1. 2022 | 9.603 | 14.066 | 2.869 | -237 | -2.561 | 10.696 | 34.435 | -106 34.329 | |
| Comprehensive income | |||||||||
| Result for the period | 1.813 | 1.813 | 168 | 1.981 | |||||
| Other comprehensive income Items that may be reclassified to profit and loss in subsequent periods: |
|||||||||
| Translation differences | -1.822 | -1.822 | 726 | ||||||
| Total comprehensive income | 0 | 0 | 0 | 0 | -1.822 | 1.813 | -9 | 168 | -5.435 |
| Transactions with shareholders | |||||||||
| Capital loan | |||||||||
| Total transactions with shareholders | |||||||||
| SHAREHOLDERS' EQUITY Jun 30. 2022 | 9.603 | 14.066 | 2.869 | -237 | -4.383 | 12.509 | 34.427 | 62 34.489 |
| EUR thousand | 1–6 2024 |
1–6 2023 |
Change. % |
1–12 2023 |
|---|---|---|---|---|
| Cash flow from operating activities | ||||
| Operating result | -3.022 | 3.200 | 7.382 | |
| Adjustments: | ||||
| Depreciation / Amortization | 499 | 492 | 1.4 | 981 |
| Adjustments. total | 499 | 492 | 1.4 | 981 |
| Changes in working capital | ||||
| Trade and other receivables. increase (-) / decrease (+) |
-6.761 | -7.437 | 9.1 | -1.901 |
| Inventories. increase (-) / decrease (+) | 717 | -324 | 5.309 | |
| Trade and other payables. increase (+) / decrease (-) |
||||
| 9.450 | 13.186 | -28.3 | 2.635 | |
| Changes in working capital. total | 3.568 | 5.425 | -34.2 | -5.025 |
| Interest paid | -259 | -168 | -53.9 | -397 |
| Interest received | 104 | 154 | -32.7 | 177 |
| Other financial expenses paid and received | -258 | -493 | 47.7 | -799 |
| Income taxes paid | -953 | -1.463 | 34.9 | -2.169 |
| Net cash generated by operating activities | -321 | 7.147 | 149 | |
| Cash flow from investing activities | ||||
| Investments in tangible and intangible assets | -1.113 | -168 | -562,5 | -173 |
| Loan receivables. increase (-) / decrease (+) | 0 | -100 | 0 | |
| Net cash generated by financing activities | -1.113 | -268 | -315.3 | -173 |
| Cash flow from financing activities | ||||
| Proceeds from non-current loans | ||||
| Repayments of non-current loans | -1.300 | -1.00 | ||
| Proceeds (+) / repayments (-) from current credit limits |
5.655 | -3.528 | -1.315 | |
| Repayments of leasing liabilities | -342 | -250 | -36.8 | -662 |
| Dividends paid | -1.057 | |||
| Net cash generated by financing activities | 4.256 | -5.078 | 2.977 | |
| Translation differences | -104 | -535 | 80.6 | -321 |
| Change in cash and cash equivalents | 2.718 | 1.265 | 114.7 | -3.322 |
| Cash and cash equivalents at beginning of the period |
7.907 | 11.229 | -29.6 | 11.229 |
| Cash and cash equivalents at end of the period | 10.625 | 12.495 | -15.0 | 7.907 |
NOTES TO THE HALF-YEAR FINANCIAL REPORT
The half-year financial report has been prepared in line with IAS 34 and the same accounting principles have been applied as in the 2023 financial statements. Key indicator calculations remain unchanged and have been presented in the 2023 financial statements.
The amendments and additions to the IFRS standards that came into force at the beginning of 2024 did not have a material effect on the consolidated financial statements.
1. OPERATING SEGMENTS
The Group has three reporting segments that are also the Group's strategic business areas:
- Project Personnel business area provides project personnel for engineering, construction, and commissioning for large investment projects in Oil &Gas and other energy-related industries worldwide.
- Consulting business area provides project management consulting, project personnel, and project management systems in non-energy related investment projects mainly in Nordic countries.
- Renewable Energy provides engineering, construction design, and construction services for wind farm projects and other zero-carbon projects in the Nordic and Baltic countries.
The Group's segment information is based on internal management reporting prepared in accordance with IFRS standards. The Group does not allocate the parent company's intra-Group charges to segments for the purposes of segment reporting.
| NET SALES | ||||
|---|---|---|---|---|
| EUR thousand | 1–6/2024 | 1–6/2023 | Change | 1–12/2023 |
| Project Personnel | 50.474 | 50.676 | -0.4% | 108.822 |
| Consulting | 7.068 | 9.099 | -22.3% | 16.529 |
| Renewable Energy | 35.619 | 33.331 | 6.9% | 71.359 |
| Total | 93.161 | 93.106 | 0.1% | 196.710 |
| EBITDA | ||||
| EUR thousand | 1–6/2024 | 1–6/2023 | Change | 1–12/2023 |
| Project Personnel | 1.649 | 2.344 | -29.6% | 5.300 |
| Consulting | 566 | 914 | -38.1% | 1.700 |
| Renewable Energy | -4.453 | 818 | 2.000 | |
| Other functions | -304 | -383 | 20.6% | -659 |
| Unallocated | 19 | -1 | 0 | |
| Total | -2.523 | 3.692 | 8.436 |
OPERATING RESULT
| EUR thousand | 1–6/2024 | 1–6/2023 | Change | 1–12/2023 |
|---|---|---|---|---|
| Project Personnel | 1.401 | 2.084 | -32.8 % | 4.915 |
| Consulting | 565 | 912 | -38.1 % | 1.681 |
| Renewable Energy | -4.572 | 718 | 1.757 | |
| Other functions | -315 | -394 | 20.0 % | -669 |
| Unallocated | -101 | -121 | 16.9 % | -302 |
| Total | -3.022 | 3.200 | 7.382 |
Unallocated expenses include amortization of customer agreements and relations and expenses recorded because of the adaptation of IFRS 16.
PERSONNEL
| Average number of personnel | 1–6/2024 | 1–6/2023 | Change | 1–12/2023 |
|---|---|---|---|---|
| Project Personnel | 689 | 665 | 3.7 % | 686 |
| Consulting | 78 | 104 | -24.8 % | 97 |
| Renewable Energy | 71 | 46 | 53.2 % | 50 |
| Other functions | 3 | 2 | 38,5 % | 2 |
| Total | 841 | 817 | 3.0 % | 835 |
In the Project Personnel business area, 20 (29) % of personnel were independent contractors.
2. NET SALES
NET SALES BY REVENUE TYPE
EUR thousand
| 1–6/2024 | 1–6/2023 | Change | 1–12/2023 | |
|---|---|---|---|---|
| Services | 57.257 | 59.410 | -3.6 % | 124.628 |
| License revenue | 204 | 294 | -30.5 % | 572 |
| Maintenance | 81 | 71 | 13.7 % | 151 |
| Projects | 35.619 | 33.331 | 6.9 % | 71.359 |
| Total | 93.161 | 93.106 | 0.1 % | 196.710 |
NET SALES BY DOMICILE OF THE COMPANY
| EUR thousand | 1–6/2024 | 1–6/2023 | Change | 1–12/2023 | |
|---|---|---|---|---|---|
| EMEA | 77.297 | 74.363 | 3.9% | 152.071 | |
| AMERICAS | 6.486 | 13.004 | -50.1% | 30.435 | |
| APAC | 9.378 | 5.740 | 63.4% | 14.204 | |
| Total | 93.161 | 93.106 | 0.1% | 196.710 |
There were no acquisitions in the review or comparison period.
4. GOODWILL
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| Acquisition cost. Jan.1 | 20.270 | 21.200 | 21.017 |
| Translation differences (+/-) | -92 | -1.312 | -747 |
| Book value | 20.178 | 19.888 | 20.270 |
Dovre Group's goodwill is divided into cash-generating units as follows:
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| Project Personnel | 15.933 | 15.600 | 16.025 |
| Consulting | 980 | 1.023 | 980 |
| Renewable Energy | 3.265 | 3.265 | 3.265 |
| Total | 20.178 | 19.888 | 20.270 |
5. FINANCIAL ASSETS
| EUR thousand | 30/06/2024 | 30/06/2023 | 31/12/2023 |
|---|---|---|---|
| Unquoted equity investment | 2.056 | 1.056 | 1.056 |
| Fund investments | 846 | 798 | 825 |
| Book value | 2.902 | 1.854 | 1.881 |
Unquoted equity investment includes Dovre Group Plc's ownership in SaraRasa Bioindo Pte. Ltd. (Bioindo) and SENS Storage AB. Dovre Group Plc's ownership was 19.86% in Bioindo and 45.0% in SENS Storage at period end. Dovre Group's investments in both Bioindo and SENS Storage are not part of the Group's core business. The category of the investment's fair value measurement is Level 3.
Fund investments include the mutual fund units of Dovre's subsidiary Suvic Oy. The category of the investment's fair value measurement is Level 1.
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| Trade receivables | 38.296 | 35.380 | 33.788 |
| Valuation allowance for trade receivables | -226 | -228 | -227 |
| Other receivables | 2.997 | 2.366 | 3.586 |
| Percentage of completion revenue | |||
| recognition | 7.936 | 9.511 | 5.291 |
| Accrued income on sales | 929 | 1.354 | 904 |
| Other prepayments | 1.012 | 1.074 | 715 |
| Total | 50.944 | 49.456 | 44.057 |
Aging analysis of trade receivables
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| No due | 31.315 | 28.922 | 25.803 |
| Overdue | |||
| 1-30 days | 3.362 | 1.343 | 6.213 |
| 31-60 days | 1.182 | 2.259 | 62 |
| 61-90 days | 1.374 | 472 | 297 |
| Over 90 days | 1.063 | 2.384 | 1.413 |
| Total | 38.296 | 35.380 | 33.788 |
7. NON-CURRENT LIABILITIES
Non-current financial liabilities
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| Non-current lease liabilities | 3.478 | 1.668 | 3.644 |
| Total | 3.478 | 1.668 | 3.644 |
| Provisions | |||
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
| Warranty provisions | 0 | 70 | 0 |
| Long-term projects | 209 | 185 | 190 |
| Litigation provision | 690 | 823 | 528 |
| Other risk provisions | 154 | 174 | 173 |
| Total | 1.053 | 1.252 | 891 |
| Non-current other liabilities | |||
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
| Other liabilities | 390 | 390 | 390 |
| Total | 390 | 390 | 390 |
8. CURRENT FINANCIAL LIABILITIES
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| Lines of credit in use | 10.021 | 4.041 | 4.366 |
| Current lease liabilities | 968 | 397 | 1.067 |
| Total | 10.989 | 4.439 | 5.433 |
9. TRADE PAYABLES AND OTHER LIABILITIES
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| Trade payables | 13.360 | 16.601 | 10.615 |
| Advances received | 3.693 | 6.214 | 3.383 |
| Other current liabilities | 8.387 | 6.942 | 7.218 |
| Accrued liabilities on income and expenses | 22.490 | 16.730 | 17.104 |
| Total | 47.930 | 46.488 | 38.320 |
| Accrued liabilities on income and expenses EUR thousand |
Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
| Current deferred income | 129 | 107 | 92 |
| Percentage of completion method | 10.837 | 7.282 | 5.824 |
| Accrued employee expenses Other current accrued liabilities on income and expenses |
8.037 3.487 |
7.178 2.163 |
8.402 2.786 |
10. GROUP COMMITMENTS AND CONTINGENT LIABILITIES
| EUR Thousand Euros | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
|---|---|---|---|
| Credit line limits. total approved limit amount |
14.020 | 12.416 | 12.527 |
| Credit line limits. amount in use |
10.021 | 4.041 | 4.366 |
| Provided collaterals: | |||
| Pledged accounts receivable |
4.894 | 4.785 | 4.958 |
| Corporate mortgages. issued by the parent company of the group |
10.000 | 5.000 | 10.000 |
| Corporate mortgages. issued by Suvic ltd |
5.000 | 5.000 | 5.000 |
| Guarantee for the credit line |
1.394 | 1.387 | 1.357 |
| Other guarantees | 2.709 | 2.563 | 2.745 |
| Total | 23.997 | 18.735 | 24.059 |
| Bank and performance guarantee limits |
|||
| EUR thousand Euros | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
| Total approved limit | |||
| amount | 15.000 | 12.000 | 15.000 |
| Amount in use | 7.894 | 10.217 | 9.864 |
| Corporate mortgages | |||
| provided as collateral: Corporate mortgages. |
|||
| issued by the parent | 10.000 | 10.000 | 10.000 |
| company of the group | |||
| Corporate mortgages. issued by Suvic Ltd |
5.000 | 5.000 | 5.000 |
| Total | 15.000 | 15.000 | 15.000 |
| Counter-guarantees for labor and warranty |
|||
| period guarantees | |||
| EUR thousand | Jun. 30. 2024 | Jun. 30. 2023 | Dec. 31. 2023 |
| The financial institution's labor and warranty period guarantee |
2.100 | 2.100 | 2.100 |
| Fund investments | |||
| given as collateral | 300 | 287 | 300 |
The company mortgages are due to the increase in the bank and delivery guarantee limits of the group's subsidiary Suvic Oy. The counter-guarantees have been given as security for the bank and delivery guarantee limit of the group's subsidiary Suvic Oy. The comparative information has been supplemented and updated.
Disputes and court proceedings
The subsidiary of the Group, Suvic Oy, has litigation pending in court. in which the Company has claims and the opposing party has counterclaims against the Company. The Company's claims concern the scope and quality of the delivery of the contract. The Company's legal position is strong. but the handling of the cases takes time. and it is difficult to assess the outcome.
11. GROUP QUARTERLY INFORMATION
| 2024 | 2023 | 2024 | 2023 | 2023 | 2023 | |
|---|---|---|---|---|---|---|
| EUR thousand | 1–3 | 1–3 | 4–6 | 4–6 | 7–9 | 10–12 |
| NET SALES | 42.290 | 44.513 | 50.871 | 47.316 | 54.037 | 50.844 |
| Other operating income | 140 | 401 | 6 | -1 | 96 | 0 |
| Material and services | -19.858 | -14.455 | -18.536 | -18.917 | -22.739 | -18.161 |
| Employee benefit expense | -25.824 | -27.408 | -28.823 | -25.324 | -27.118 | -29.537 |
| Other operating expense | -1.370 | -1.112 | -1.419 | -1.321 | -1.356 | -1.411 |
| EBITDA | -4.622 | 1.939 | 2.099 | 1.753 | 2.920 | 1.735 |
| Depreciation and amortization | -256 | -238 | -243 | -255 | -220 | -252 |
| OPERATING RESULT | -4.878 | 1.701 | 1.856 | 1.498 | 2.700 | 1.483 |
12. GROUP KEY FINANCIAL PERFORMANCE INDICATORS
| 1-6 | 1-6 | 1-12 | |
|---|---|---|---|
| EUR million | 2024 | 2023 | 2023 |
| Cash and cash equivalents | 10.6 | 12.5 | 7.9 |
| Interest-bearing liabilities | 14.5 | 6.1 | 9.1 |
| Net debt | 3.8 | -6.4 | 1.2 |
| Equity attributable to equity holders of the parent | 34.9 | 34.4 | 37.1 |
| Shareholders' equity | 33.0 | 34.5 | 37.4 |
| Balance sheet total | 97.9 | 90.3 | 88.0 |
| Return on equity. % | -20.4% | 11.5% | 11.3% |
| Return on investment. % | -11.1% | 15.1% | 16.0% |
| Debt-equity ratio (Gearing). % | 11.6% | -18.5 % | 3.1% |
| Equity-ratio. % | 35.1.% | 41.0 % | 42.5 % |
| Personnel (average for period) | 841 | 817 | 835 |
| Personnel (at end of period) | 875 | 862 | 820 |
| Earnings per share. EUR (basic. average for period) | -0.013 | 0.017 | 0.038 |
| Equity per share. EUR (basic. end of period) | 0.33 | 0.32 | 0.35 |