First-half profits set to increase for Driver Group

Construction and engineering consultancy Driver Group said in a trading update on Thursday that it was expecting first-half revenue of £24.2m, down slightly from £24.4m year-on-year.

The AIM-traded firm said its underlying profit before tax was set to exceed £0.65m for the six months ended 31 March, however, up from £0.4m in the corresponding prior-year period.

It said its positive first-quarter performance continued and strengthened during the second three months of the year.

The Europe-Americas region had continued to perform well, and the Middle East region returned to profit as a result of the realignment of strategy and servicing in the geography, as the company announced in November.

Driver Group said it also saw improvements in the Asia-Pacific region, with both the Middle East and Asia-Pacific benefiting significantly from the streamlined servicing of customers through the company's existing network of offices.

The firm said its cost-saving measures and overheads review was ongoing, with some savings already realised, and significant further savings expected to take effect from the fourth quarter of 2023, and beyond.

“Our staff around the world have worked tirelessly with management to move the business forward, in line with the plans we set out for the 2023 financial year,” said chief executive officer Mark Wheeler.

“As we move into the second half of 2023, we are encouraged by the opportunities and progress made, building on the sound foundations we have established.”

At 0935 BST, shares in Driver Group were up 4.69% at 28.27p.

Reporting by Josh White for Sharecast.com.