Driver Grp Share Price (DRV)

Mark Wheeler, CEO and Charlotte Parsons, CFO of Driver Group presented highlights of their Preliminary results for the 12 months ended 30 September 2023, which included a strong turnaround in profitability, action taken on costs and improved levels of utilisation.

The team also outlined their integrated transformation strategy, which will rebrand the global business to Diales, implement a hub and spoke model, reset relationships with overseas offices, and expand the business's service offering to hire key work winners in adjacent sectors (aerospace, financial forensics, IT and marine). Management also answered a wide range of questions from viewers.

The full video has been divided into chapters, as below:

0:00:00 Introduction & Service Offerings

0:02:47 Operational Highlights

0:03:56 Financial & Regional Updates

0:08:08 Cash Flow & Profit Bridges

0:09:23 Transformation Strategy (Vision, Key Actions)

0:20:11 Questions & Answers

Link to video: https://www.equitydevelopment.co.uk/research/driver-group-investor-presentation-preliminary-fy-results-december-2023

Research report with audio summary now available: https://www.equitydevelopment.co.uk/research/new-strategic-plan-to-further-improve-margins

FY23 preliminary results delivered a strong turnaround in profitability on modestly lower revenues, highlighting action taken on costs and improved levels of utilisation. With a solid foundation now in place, we expect the new strategic plan to deliver an uplift in gross margins of c. 20% by the end of FY27. With plans in place to expand top line revenues plus a focus on added value expert services and related sectors, the outlook is bright and not yet reflected in the company’s current valuation in our view.

Year-end cash made up 42% of the Group’s market capitalisation and 37% of the NAV. This values the underlying business on modest ratings. We retain our 40p fair value / share which will be re-assessed as earnings momentum feeds through.

Driver Group plc (AIM: DRV), the leading global professional services consultancy to the construction and engineering industries will be conducting a presentation covering its Preliminary results for the 12 months ended 30 September 2023.

The online event will be hosted by Mark Wheeler, CEO and Charlotte Parsons, CFO and will take place at 12.00pm on Thursday 14th December.

Questions can be submitted during the presentation to be addressed at the end.

The presentation is open to all existing and potential shareholders - you can sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/drivergroup-investor-presentation-14december2023

Driver (LON:DRV) - Strategy on track, despite timing issues (new research report available here: https://www.equitydevelopment.co.uk/research/strategy-on-track-despite-timing-issues)

Driver Group has issued a trading update earlier than normal, citing a weak Q3 (reflecting a combination of timing issues and the later Easter) as reasons. Nevertheless, Q4 has witnessed a return to more normal patterns of trading and coupled with the rationalisation programme yet to impact results and the pipeline of orders looking more encouraging, we think the medium-term outlook appears favourable. The further improvement in net cash levels provides the Board with opportunities, not least in its capital allocation policy, including the further return of cash to shareholders. The NAV remains above the current share price.

We expect the NAV to decline modestly during H2, reflecting the slight reduction in profitability. However, at c.£15.8m / 29p per share, which is 8% above the current share price, this provides healthy support for the shares. With the current share price now below levels of previous buybacks and net cash higher during H2, we remain positive over the medium-term.

Reflecting the timing issues witnessed during H2, we reduce our fair value / share from 49p to 40p.

Driver Group plc (AIM: DRV), the leading global professional services consultancy to the construction and engineering industries, conducted a live investor presentation covering their Interim results for the period ended 31st March 2023.

Mark Wheeler (CEO) and Charlotte Parsons (CFO) ran investors through highlights of the Half Year, which included a return to profit at Group level, improving utilisation, a cost reduction programme and an improving pipeline of global enquiries. Management also answered a range of questions submitted by viewers.

If you missed the live event, the full presentation recording is available here and has been divided into chapters as below:

0:00:44 Service Offerings

0:06:17 Operational Highlights

0:07:48 Financial and Regional Updates

0:11:41 Cash flow Bridge

0:13:05 Summary & Outlook

0:16:15 Questions & Answers

Link to video: https://www.equitydevelopment.co.uk/research/driver-group-investor-presentation-interim-results-june-2023