AGM Statement

RNS Number : 6832Q

Driver Group plc

02 March 2016

 

Driver Group plc

("Driver" or the "Group")

AGM STATEMENT

Driver, which provides disputes, programme & project management and other consulting services to construction, engineering and industrial markets around the world, is holding its Annual General Meeting later today. At the meeting Non-Executive Chairman Steve Norris will make the following statement:

"The second half of financial year 2014-15 delivered some strong numbers particularly in AMEA where we had record revenue levels, but as I have been careful to state, the Group has short term visibility particularly in its core disputes business and we have experienced the upside and downside of this so far in this new financial year.

Strong AMEA performance continued at the start of 2015-16 with November 2016 again being a month of record revenues in the Region and within AMEA our Asia Pacific and Africa operations are so far performing above expectations. However, in the period mid-December to mid-February the Middle East business was affected by a number of dispute commissions being delayed and suspended which had the effect of eroding the good start we had to the year. We have subsequently secured some significant appointments and a number of the delayed or suspended commissions have commenced meaning that over the coming months management anticipate recovering much if not all of this shortfall. We do, however, continue to cast a watchful eye on Qatar where workload and pressure on fees continues to be an issue.

The UK disputes business despite having a strong second half to 2014-15 had a slow first quarter in 2015-16 due to the mix of commissions containing a lower number of large team assignments than is usual which has impacted on our utilisation levels.  The UK project services business had a slow start due to oil and gas related clients scaling back their requirements. From January the mix of commissions has been more favourable and our project services business is securing higher work volumes meaning that a return to expected performance was achieved in January. However, we do not currently expect to recover the first quarter shortfall.

The Initiate business is currently performing ahead of expectations but will not be without its challenges in the remainder of the year as we seek to broaden its service offering and achieve the right balance between investment and returns. The development of the programme & project management service lines and our project services offering will not only provide opportunity to leverage the Group's services but also lead to the ability to have longer term revenue predictions.

The nature of our business means that we have to continually maintain focus on the cost base of the Group. We have reviewed our cost of sales and overheads across the business and are implementing savings where appropriate to both existing costs and budgeted spend.

Overall we continue to progress well against our Strategic Plan and the delivery of expected revenue levels for the year. However, as was the case last year, these will be materially back end loaded given the reduced revenue levels in the periods previously mentioned which have also used a significant amount of our contingencies.

Over the last eighteen months Dave Webster, the Group Chief Executive, has put in place the platform to deliver the Strategic Plan through to 2018 and key to that is a strong senior management team. Dave has decided that now is the right time to hand over to somebody with experience of building and leading larger scale and broader professional services businesses and at the close of the AGM will stand down from the position of Group Chief Executive and will become a non-executive director of the Group.  Gordon Wilkinson who currently leads our initiate business will assume the role of Group Chief Executive.   Commenting, Dave Webster said "It has been a privilege and a pleasure to lead Driver Group for the last 5 years.  I am proud to have taken the company from sales of £16 million to approaching £60 million and to have developed the business into a world leader in construction and engineering professional services.  Now is the right time for me to hand over the baton to my successor and I am enormously pleased to continue my association with Driver Group as a non-executive director."  

I want to acknowledge Dave's invaluable contribution to the growth of Driver Group over many years and to express my personal appreciation of his efforts.  It has been a great pleasure to work with him.  My board colleagues join me in thanking him for all he has done.  I am delighted that he has accepted the board's invitation to become a non-executive director and I look forward to our continued association."

Enquiries:

Driver Group plc

Damien McDonald, Group Finance Director  Tel [phone]

Steve Norris, Non-Executive Chairman       Tel [phone]

Panmure Gordon (UK) Ltd

Dominic Morley / James Greenwood            Tel [phone]

Further information:

Gordon Joseph Wilkinson, 53, has in the last five years been a director of OVE Arup & Partners Limited, where he is no longer a director.

There is no other information required to be disclosed under paragraph (g) of Schedule Two of the AIM Rules for Companies. 

 

 

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