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Driver Group plc (DRV)

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Monday 11 March, 2019

Driver Group plc

Trading update

RNS Number : 3843S
Driver Group plc
11 March 2019
 

11 March 2019

 

DRIVER GROUP PLC

 

("Driver Group" or "the Company")

 

Trading update

 

Driver Group plc (AIM: DRV), the leading global professional services consultancy to the construction and engineering industries, providing multi-disciplinary consultancy services including expert witness, claims and dispute resolution services, today provides the following operational update on its activities.

 

Driver Group has continued to make good progress towards the fulfilment of its strategic objectives since the announcement, on 11 December 2018, of its results for the financial year ended 30 September 2018.

 

However, owing to a slowing in the speed of client conversion, in particular in the Middle East and south-east Asian markets as a consequence of local market conditions, the cumulative trading result is now behind the Board's expectations for the current period and the Board's judgement is that the shortfall is unlikely to be recovered in the second half. As a result, the Board now anticipates full year underlying profits before taxation to be slightly below the 2017/18 result at approximately £3.5m.

 

The Company continues to perform well across markets, regions and sectors. It continues to enjoy great success with its Diales brand and in the recruitment of high quality experts and commissions. The Company's new business enquiry pipeline is at an historically high level, and is approximately 20% higher year-on-year when compared with the corresponding period in 2017-18. Moreover, good quality enquiries are coming into the business across all sectors and regions. The Company's recently reinstated, progressive dividend policy remains unaffected, underpinned by current cash balances of approximately £5.1 million.

 

Driver Group's plans for further strategic growth and development are also unaltered. The Company continues to develop world leading, proprietary AI technologies to enhance client fulfilment, increase margin and strengthen its global competitive market positioning. The Company is also close to finalising a wider range of initiatives and structures designed to enhance its operational efficiency, lower its cost base and improve cash collection, in order to further cement the Company's position as a leading global player.

 

Gordon Wilkinson, CEO of Driver Group, said:

 

"Driver Group continues to make good progress across markets and sectors.  It is frustrating to report that a number of Expert Witness/Dispute projects that were expected to convert in H1 2018-19 have been temporarily delayed or deferred, particularly as our new business pipeline is at historically high levels.  There are significant opportunities for Driver Group in the second half of the financial year, and I am confident that we will make good progress in converting these leads, based on our proven track record of prudent business planning and management, our exceptional team of professional services experts, and our specialist understanding of sectors, markets and issues."

 

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

Enquiries:

Driver Group plc

Gordon Wilkinson (CEO)

David Kilgour (CFO)

via Acuitas Communications

 

N+1 Singer - Nominated Adviser

Sandy Fraser

Jen Boorer

 

+44 (0) 20 7496 3000

 

 

Acuitas Communications - Financial PR

Simon Nayyar

Fraser Schurer-Lewis

 

+44 (0) 20 3687 0868

[email protected]

[email protected]

 


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