Dovre Group lowered its earnings guidance – raised guidance for turnover

Project personnel and project management consulting company Dovre Group lowered its guidance for operating profit last night, but raised it for turnover.

The company estimates that the operating loss will fall in the range of 1.5–2.0 million euros this year, while the previous guidance expected an operating profit of 2–4 million euros.

The turnover is estimated to be 210-220 million euros, while previously it was expected to be 185-210 million euros.

Last year, Dovre’s turnover decreased by 3.1 percent from the previous year to 196.7 million euros. Operating profit fell by 12.6 percent to 7.4 million euros.

According to Dovre, the background of the new turnover guidance is the increased turnover of the Project personnel business area, while the operating profit is weighed down by the reduced profitability of business projects focused on renewable energy.

Dovre Group has three business areas, the largest of which is the area focused on project personnel, which brought in 108.8 million euros in turnover last year.

The area focused on renewable energy projects made 71.4 million euros in turnover last year. Consulting brought in 16.5 million euros.

After the earnings warning, Dovre Group announced that it was selling the Project Personnel business area and the Norwegian consulting business to Nyab for 34 million euros.

Completion of the transaction is estimated to take place at the beginning of January next year. The sale does not affect this year’s guidance.