Last checked at 14 Sep 2016 07:00
Driver Group plc ("Driver" or "the Group")
Trading update
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 2016.
The Board is pleased to confirm that, as expected, the Group has returned to profit during the second half and furthermore that turnover in the period is expected to be roughly 7% ahead of that recorded at the interim stage. Considerable progress has been made in reducing the cost base across the Group, driving efficiencies and improving job profitability and the detailed review of the Group's operations which commenced following Gordon Wilkinson's appointment as CEO in March is ongoing.
Revenue and operating profit in Europe & Americas are above expectations and at record levels for the period, whilst revenues in AMEA are broadly in line with expectations and again at record levels. Despite this significant improvement in operating performance, operating profits in the AMEA region have been well behind internal forecasts and, after a further review of the Group's debtor book, the Board has determined to increase the provision against outstanding debts in the AMEA region by a further £520,000. Based on the latest management information and including the impact of the increased debtor provision, the Board now expects that the Group will record a modest operating loss before exceptional items for the financial year as a whole.
Net debt at the financial year end is expected to be in the region of £9.0m, in line with market forecasts and comfortably within the Group's available facilities. Further steps are still required to bolster and improve the sustainable profitability of the Group. Nonetheless, the Board is confident of delivering further progress in the 2017 financial year.
Enquiries:
Driver Group plc
Gordon Wilkinson (CEO) 07964-518095 gordon.wilkinson@driver-group.com
Hugh Cawley (CFO) 07971-469975 hugh.cawley@driver-group.com
N+1 Singer - Nominated Adviser
Sandy Fraser 0207-496-3000