Driver Group disposes of South African subsidiary

AIM-listed Driver Group announced the disposal of its South African subsidiary, Driver Trett South Africa Pty Ltd, to DTSA's local management team.

The provider of specialist commercial and dispute resolution services said that with its more widespread focus and given the fact it has recently been loss-making, it was regarded as non-core with little immediate prospect of improved performance under its current ownership structure.

In consideration for the disposal, Driver will become entitled to receive the net proceeds of sale of the 300,000 Driver ordinary shares currently owned by DTSA management. Driver has agreed to write off an inter-company balance due from DTSA of £0.63m. Cash proceeds received from the sale will be used for working capital purposes.

In full-year 2016, DTSA generated revenue of £3.59m and a pre-tax loss of £0.55m, with net liabilities of £0.18m as at 31 March 2017.

At 0916 BST, the shares were up 5.55 to 48p.