Driver Group plc Trading update (0988D)
October 26 2020 - 3:00AM
UK Regulatory
TIDMDRV
RNS Number : 0988D
Driver Group plc
26 October 2020
26 October 2020
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 announces the following operational update on its
activities.
Since January 2020 Driver Group has been managing the impact of
Covid-19 on the business and by adopting a flexible home working
model has continued to service its clients effectively and
sustainably with the minimum of business interruption. Activity
levels overall have been broadly consistent with those achieved in
the first half, with a strong performance in the UK and Europe
offset by a weaker result in the Middle East and Asia Pacific
regions. As a result, the Board expects in the absence of
unforeseen circumstances to report underlying* PBT for the
financial year of approximately GBP2.5m. Cash conversion has been
particularly strong in recent months resulting in a healthy net
cash balance on 30 September 2020 of GBP8.2m.
The business continues to implement the strategic review
initiated upon Mark Wheeler's appointment as Chief Executive
Officer in June 2020. Key developments during the period have
been:
-- The opening of a new office in New York in August, supported
by two leading resident experts, which both enhances the Company's
ability to service its clients in North America and provides
improved access to the important South American markets; and
-- The formation in September of a strategic partnership with
Africa's leading claims and dispute resolution consultancy which
will provide improved access to the African market.
As part of the strategic review Driver Group has also
restructured its Middle East and Asia Pacific (APAC) operations to
meet the changing business demands in those regions. Stefan
Panourgias, who previously headed the Group's Qatar operations will
now lead the Middle East region. Driver Group has taken the
opportunity to restructure and scale back its presence in APAC
following the departure of two senior members of its Singapore
office; the APAC region will now be led by Alasdair Snadden who
currently heads the Company's operations in Singapore.
Mark Wheeler, CEO of Driver Group, said:
"I am pleased to be able to report that Driver Group has
performed well during the year and has managed the uncertainty
caused by the Covid-19 pandemic to ensure the business remained
profitable and cash generative throughout the year in spite of a
reduced level of activity. I am confident that the reduced cost
base and renewed focus on our core business of higher margin expert
witness and dispute resolution in both APAC and the Middle East
will deliver improved operating performance. Alasdair and Stefan
have proven track records in our business and I look forward to
working with them and with our new colleagues in our operations in
America and South Africa over the next few years to deliver
significant progress . "
*underlying PBT is stated before the one off severance cost of
previous CEO
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 020 7377 0005
Mark Wheeler (CEO)
David Kilgour (CFO)
N+1 Singer (Nomad & Broker) 020 7496 3000
Sandy Fraser / Jen Boorer
(Corporate Finance)
Acuitas Communications 020 3687 0868
Simon Nayyar simon.nayyar@acuitascomms.com
Fraser Schurer-Lewis fraser.schurer-lewis@acuitascomms.com
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END
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