TRADING UPDATE

Driver Group plc

26 September 2023

 

Driver Group Plc

("Driver Group", "Driver" or "the Company")

Year End 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 announces a trading update for the year ending 30 September 2023.

As indicated in the company's interim results in June 2023, the start of H2 FY23 was slower than expected. Q3 experienced reductions in the levels of activity, with an improvement seen in Q4 and a number of significant commissions secured in this period which will benefit FY24.

While the Q3 to Q4 trend is improving and is early evidence of a return to H1 levels of trading, the performance in H2 is expected to lead the Group to deliver an underlying* profit before tax in FY23 (versus an underlying* loss before tax of £1.0M in FY22) at a slightly lower level than the £0.7M reported at the half year.  The Group continues to have a robust balance sheet and expects to report an improvement in the September 2023 year end cash position (March 2023: £5.3M).

Management has made significant progress with the implementation of the planned cost reductions set out in the interim results. Actions have included the closure of overseas offices, reduction of existing office lease costs and adjustments to headcount in several locations. Implementation is expected to be complete by December 2023, enabling the full positive benefits of a lower and leaner cost base to flow into next year.

Mark Wheeler, Chief Executive Officer of Driver Group, commented:

"Trading in Q4 23 suggests that market conditions are improving. FY23 revenue is expected to be close to that reported in FY22 and profitability for the full year will show a substantial improvement on the prior year, with a further improved cash position.  I am pleased that we have made significant progress in the delivery of our cost reduction plans as this positions the Group for long term sustainable growth and enables us to further develop the business and maximise its potential."

* Underlying figures are stated before the share-based payment costs and one off non-recurring costs

ENDS 

Enquiries:

Driver Group plc	020 7377 0005
Mark Wheeler (CEO)
Charlotte Parsons (CFO)
Singer Capital Markets (Nomad & Broker)	020 7496 3000
Sandy Fraser
Jen Boorer
Alex Emslie
Acuitas Communications	020 3745 0293 / 07799 767676
Simon Nayyar	[e-mail]
Arthur Dingemans	[e-mail]

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

END