Driver Group ends year ahead of expectations

Construction and engineering professional services consultancy Driver Group updated the market on its trading performance during the second half of the financial year ending 30 September on Tuesday, reporting that it had continued to perform well during the second half and, as a result, it expected to report underlying profit before tax for the financial year “comfortably ahead” of current market expectations at about £3.8m.

The AIM-traded firm said the non-cash share-based payment charge deducted in calculating reported profit before tax would be assessed as part of the audit sign-off process.

It anticipated that could increase further, as the board's expectations of future performance strengthened.

“The UK business has again performed strongly and there have also been exceptionally good performances this year in Kuwait, Qatar and Singapore,” the Driver Group board said in its statement.

Overall, it said the group achieved “significantly enhanced” utilisation levels of 80% for 2018, up from 76% in the 2017 financial year, and there remained 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.”

Driver Group said it expected to report preliminary results for the year ending 30 September on or around 11 December.