Last checked at 8 Oct 2008 07:00
AIM: DRV
Driver Group plc
("Driver" or the "Group")
Trading Update
Driver, the provider of specialist commercial and dispute resolution services to the construction industry, is pleased to make the following trading update for the financial year ending 30 September 2008.
The Directors are pleased to report that the financial performance of the Group for the full year is expected to be in line with market expectations. In addition, the Group is expected to close the period with significantly reduced net borrowings, compared to the £1.0m net borrowings position as at 31 March 2008, reflecting the strong operating cash flows during the six months.
The Group continues to operate in a wide range of sectors within the construction and engineering industries, including rail, roads, utilities, nuclear and airports. The diversity of Driver's operations remains a key strength of the business going forward.
Within the UK, sales and profits have increased. The Southern Region has performed very strongly, with sales and profitability at record levels. London in particular has benefited from significantly improved staff utilisation and increases in charge-out rates, and Bristol has performed strongly, securing commissions on major projects. The Directors are also pleased to report that the benefits of the acquisition of CMC, made in the second quarter, are coming through with cross-referrals and new clients for both businesses.
Sales in the Middle East have more than doubled over the year and Driver has expanded its operations in the region, with around 20 new appointments during this time. The Directors anticipate that demand from the Middle East will remain very high for the foreseeable future.
Reflecting the ongoing expansion of the Group, on 1 October, the Board was pleased to promote Executive Director, Dave Webster, to the newly created role of Chief Operating Officer. Dave was previously responsible for Driver's UK operations.
The Directors expect to announce the Group's preliminary results in mid January 2009 and look forward to updating shareholders on further progress.
For more information:
| Driver Group plc Steve Driver, Chief Executive Colin White, Group Finance Director | Tel: 01706 223 999 |
| Zeus Capital Limited Alex Clarkson/Nick Cowles | Tel: 0161 831 1512 |
| WH Ireland Gary Marshall | Tel: 0113 394 6600 |
| Biddicks Katie Tzouliadis | Tel: 020 7448 1000 |