Driver Group expecting 'creditable' performance in interim period

Construction and engineering consultancy Driver Group updated the market on its trading on Friday, describing its performance as “creditable” in the interim period, with profit before exceptional items and tax expected to be “slightly lower” year-on-year.

The AIM-traded firm said the prior-year period ended 31 March 2020 was “largely unaffected” by the Covid-19 pandemic.

It said a “fast-moving picture” in terms of lockdown restrictions in key territories, and the loss of senior staff and associated team members to a competitor in the Asia-Pacific region, combined to present significant challenges.

However, it said meaningful progress had been made in implementing its five-year strategic plan announced in December.

That plan was intended to drive shareholder value through increasing the proportion of sales represented by higher-margin expert assignments, and the recruitment of key talent to further enhance Driver's technical and geographical service offering.

The board said it was confident that the merits of the strategy would become “increasingly evident” over the life of the plan.

Driver Group said it was in a “strong” net cash position, with net balances at 31 March of £7.2m and bank facilities of a further £7m, making for a “significant improvement” on the equivalent position at the same time last year.

“The unique challenges presented by Covid-19 have masked the significant strategic progress we have made during the period, at least insofar as measured by financial results,” siad chief executive officer Mark Wheeler.

“The outlook for the second half year is encouraging with activity levels improving from the low point in January and February at the height of lockdown restrictions in the UK and Europe.”

The Company expects to report interim results for the period on 8th June 2021.

At 1307 BST, shares in Driver Group were down 5.05% at 52.22p.