Driver Group plc AGM Statement (6832Q)
March 02 2016 - 2:00AM
UK Regulatory
TIDMDRV
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 GBP16 million to
approaching GBP60 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 +44(0)1706223999
Steve Norris, Non-Executive Chairman Tel +44(0)2073400380
Panmure Gordon (UK) Ltd
Dominic Morley / James Greenwood Tel +44(0)2078862500
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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