Trading Update and Board Change
29 March 2022
DRIVER GROUP plc
("Driver Group", "Driver" or "the Company")
Trading update and Board Change
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 an update on trading and details of a Board change.
Trading Update
Driver Group has had a difficult second quarter (ending 31 March) with results during the period impacted by a combination of a problematic loss-making contract in the APAC region and an unexpected drop in revenues in the Middle East region. The EuAm region has continued to perform well and provides a solid platform upon which to build for the future, but the drag effect from the APAC and Middle East regions means that underlying* Group profit before tax for the half year is expected to be between £300,000 and £500,000 against £1.0m in the corresponding period last year.
The Board recognises that despite the actions previously taken, this statement provides further evidence of loss-making and inconsistent performance within the Middle East and APAC regions. Given the historic underperformance of these regions, the Board instructed an operational review of both regions, with independent external support, and has identified a near term opportunity to reduce annual operating costs by in excess of £1.0m through a reconfiguration of the Group's operating footprint in both regions, including the closure of marginal locations. In addition, this reconfiguration and associated reduction in headcount is expected to result in higher utilisation allowing management to be more selective of its future client base. Implementation of the key findings of the review will commence immediately and is expected to support a significant improvement in profitability in the second half.
Net cash balances currently stand at £3.9m with available bank facilities of a further £5.0m, reflecting a significant increase in trade and working capital receivables, particularly in the Middle East regions and dividend payments.
*underlying PBT is stated before the costs of share based payment costs
Board Change
The Group also announces that David Kilgour has tendered his resignation as Chief Financial Officer and will leave the Group to pursue other ventures. The recruitment process will commence immediately to identify a suitable replacement to ensure a smooth transition.
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.
ENDS
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Enquiries: |
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Mark Wheeler (CEO) |
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Sandy Fraser, Will Goode |
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Simon Nayyar |
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Edward Lee |
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