Driver Group plc Trading update (3843S)
March 11 2019 - 3:00AM
UK Regulatory
TIDMDRV
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 GBP3.5m.
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 GBP5.1
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
simon.nayyar@acuitascomms.com
fraser.schurer-lewis@acuitascomms.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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