DRV.L Regulatory News (DRV)

25 Jun 2009 07:00



DRV

Driver Group plc

("Driver" or the "Company")

Trading Update

Driver, the provider of specialist commercial and dispute resolution services to the construction industry, issues the following trading update.

In the Company's half year report for the six months to 31 March 2009, issued on 3 June 2009, the Company highlighted that the trading environment had become more challenging, especially in its major market of the UK although its business overseas, especially in the Middle East, continued to grow strongly.

Since then, the Directors have reviewed forecasts for the second half of the year and have concluded that profit before tax, and before the cost of share options, is likely to remain broadly in line with last year's full year result. There are three key reasons for this:

1) A major litigation contract in Oman has settled significantly ahead of schedule. This will adversely affect the level of income originally anticipated from Oman in the second half, however growth opportunities for Driver's services remain excellent;

2) In the UK, results from our Northern region continue to be impacted by the reduction in commercial building activity and the lead time required to develop opportunities in other sectors, including energy and power. In addition, in London, we have currently secured fewer larger litigation contracts than had been previously projected; and

3) The continuing rise in Sterling against the Group's major trading currencies (Euros, United Arab Emirates Dirhams and Omani Riyals) is projected to further impact profitability. 

Despite these short term challenges, the Board continues to see opportunities to grow the business significantly over the longer term, particularly in the Middle East, London and the wider international market.

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