Driver Grp Regulatory News (DRV)

16 October 2018

DRIVER GROUP PLC

("Driver" or "the Group")

Trading update and notice of preliminary results

Driver Group, the global professional services consultancy to construction and engineering industries provides an update on trading performance during the second half of the financial year ending 30 September 2018.

The Board is pleased to report that the Group has continued to perform well during the second half and, as a result, that it expects to report underlying PBT* for the financial year comfortably ahead of current market expectations at approximately £3.8m. The non-cash share-based payment charge deducted in calculating reported PBT will be assessed as part of the audit sign-off process. It is anticipated that this may increase further as the Board's expectations of future performance strengthen.

The UK business has again performed strongly and there have also been exceptionally good performances this year in Kuwait, Qatar and Singapore. Overall, the Group has achieved significantly enhanced utilisation levels of 80% for 2017/18 (76% for 2016/17) and there remains a vigorous and vigilant focus on the management of overhead.

Continued focus on the management of working capital has delivered excellent cash generation during the year resulting in a net cash position of £6.9m at the year end, also comfortably ahead of market expectations. This compares to a net debt position of £0.2m at the same time last year.

The Board expects to report preliminary results for the year ending 30 September 2018 on or around 11 December.

 *Underlying figures are stated before share-based payment costs, amortisation of intangible assets and exceptional items.