Trading update

RNS Number : 7573X

Driver Group plc

10 May 2016

 

Driver Group plc

("Driver" or the "Group")

Trading update

Driver, which provides disputes, programme and project management and other consulting services to construction, engineering and industrial markets around the world, has issued the following statement.

As previously reported, the delay of contracts in the AMEA region led to a significant softening of revenues in December, January and February. At the time of the AGM in March, bearing in mind the short term nature of much of the company's revenues, it had been assumed that much of the lost profit in those months would be recovered over the remainder of the year. March and April revenues were strong and the current workload / pipeline indicates that the Group will deliver revenues for the year ending 30 September 2016 at least in line with current market expectations. However, following the appointment of a new CEO in March, Driver commenced a detailed review of all aspects of the business and the board taking into account the findings of the ongoing review believes that profit for the current year will be significantly short of market expectations. In addition, a review of the bad debt provision has led to a more prudent approach and an increase of an additional £460,000 has been implemented, primarily due to a small number of outstanding debts in the AMEA region.

The business has addressed its cost base and this has resulted in the removal of costs totalling £2.4 million in a full year so as to better position itself for future profitable growth.

Driver has agreed in principle an additional £2 million revolving on-demand credit facility with HSBC which will when finalised provide the Group with working capital flexibility.

Driver intends to announce its interim results for the six months ended 31 March 2016 on 24 May 2016.

Enquiries:

Driver Group plc
Gordon Wilkinson, Chief Executive Officer  Steve Norris, Non-Executive Chairman	Tel: [phone] Tel: [phone]
Panmure Gordon (UK) Limited
Dominic Morley / James Greenwood	Tel: [phone]

 

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