Driver Grp Share News (DRV)

Driver Group posted a 20% slump in revenue for the year and dumped its dividend payment as it grapples with a struggling UK construction market.The Rossendale-based consultancy group, which provides specialist commercial and dispute resolution services to the construction industry, reported an underlying pre-tax loss of £0.4m in the 12 months to 30 September 2010 compared to a profit of £1.3m the year before. Revenue fell to £16.4m in the year from £20.5m before.Commenting on the results executive chairman Steve Driver said, "This year has been the biggest challenge in the group's history as we invested money and energy in developing new territories and services whilst managing the effects of declining construction markets in the UK and Middle East."The underlying loss for the year includes costs related to its investment in Africa and Qatar. Excluding the impact of these investments the underlying loss for the year came in at £0.1m.Driver said the new initiatives are aimed at providing growth to counter any further decline in its previous traditional construction markets. Driver said it had also been hit by a downturn in the Abu Dhabi construction market and reduced services work in Oman."2010 represented a year of strategic investment in developing new territories and services to re-position the business for 2011 and beyond," the group explained.No dividend payment has been recommended, "in view of the trading loss and cash outflow in the year," compared to a 2p payment the year before. The group's net borrowing position at the end of the year stood at £0.5m compared to £0.2m in 2009.