Driver Group flags £9m operating loss for current year

Global professional services consultancy in the construction and engineering industries, Driver Group, updated the market on its trading performance during the second half of the financial year to 30 September on Wednesday.

The AIM-traded company confirmed that, as expected, it returned to profit during the second half with turnover in the period expected to be roughly 7% ahead of the figures 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,” the board said in a statement.

It said revenue and operating profit in the Europe & Americas regions 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.”

Driver said 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.

It added that further steps are still required to bolster and improve sustainable profitability, but the board remained confident