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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Driver Group Plc | LSE:DRV | London | Ordinary Share | GB00B0L9C092 | ORD 0.4P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 24.50 | 23.00 | 26.00 | 24.50 | 24.50 | 24.50 | 12,000 | 07:30:33 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Heavy Construction, Nec | 42.63M | -336k | -0.0064 | -38.28 | 12.87M |
From Apr 2019 to Apr 2024
TIDMDRV
RNS Number : 8974F
Driver Group plc
23 May 2017
23 May 2017
DRIVER GROUP PLC
("Driver" or "the Group")
Interim Report
For the six months ended 31 March 2017
Key Points (for the six months ended 31 March 2017)
-- Revenue up by 18% to GBP32.84m (2016: GBP27.90m) -- Gross profit up GBP2.81m to GBP7.75m (2016: GBP4.94m)
-- Underlying(*) profit before tax of GBP1.03m (2016: Underlying(*) loss before tax of GBP1.51m). Reported profit before tax of GBP0.27m (2016: loss of GBP3.45m)
-- Successful equity raise of GBP8.5m to restore strength to the balance sheet reducing net borrowings** to GBP3.50m from GBP10.01m in September 2016.
-- Headcount reduced by 10% to 488 (2016: 541) following actions to reduce unproductive cost base; utilisation levels increased by 5 percentage points to 74% (2016: 69%)
-- Asia Pacific, Middle East & Africa "AMEA" returned to underlying* profit for the period of GBP0.76m (2016: Underlying(*) loss before tax of GBP0.76m) with utilisation levels increased to 74% (2016: 70%).
-- Europe & Americas "EuAm" reported underlying* profit for the period of GBP1.31m (2016: GBP0.01m) with utilisation levels increased to 73% (2016: 66%).
-- Sale of South Africa business to local management team agreed post period end.
* Underlying figures are stated before the share-based payment costs, amortisation of intangible assets and exceptional items (note 6).
** Net (borrowings) / cash consists of cash and cash equivalents, bank loans and finance leases.
Steve Norris, Chairman of Driver Group, said:
"Driver's fortunes have improved significantly. Comparison with the equivalent period last year shows a dramatic turnaround. Whilst this financial improvement is indeed encouraging we are of course far from complacent. There is much more that can be achieved and we remain focused on delivering further profit growth and debt reduction over the coming months and years. The recent successful equity raise where we were fortunate enough to be able to call on both supportive long-standing shareholders and indeed to encourage excellent quality new holders to the register, has been central to allowing us to concentrate on the execution of our strategy to deliver significantly better returns than those of more recent times.
Enquiries: Driver Group plc Gordon Wilkinson, Group Chief Executive Hugh Cawley, CFO +44 (0)20 7377 0005 N+1 Singer (Nominated Adviser & Broker) Sandy Fraser James White Alex Laughton-Scott +44 (0)20 7496 3000
INTRODUCTION
Over the reporting period, Driver's fortunes have improved significantly. Comparison with the equivalent period last year shows a dramatic turnaround. Whilst this financial improvement is indeed encouraging we are of course far from complacent There is much more that can be achieved and we remain focused on delivering further profit growth and debt reduction over the coming months and years. The recent successful equity raise where we were fortunate enough to be able to call on both supportive long-standing shareholders and indeed to introduce new institutional holders to the register, has been central to allowing us to concentrate on the execution of our strategy to deliver significantly better returns than in recent times. With the remedial actions we have taken to restore the business to profit for the period, and the restoration of stability in the balance sheet I am confident that the Group is now as well-placed as it has ever been to deliver consistently in its core business.
Driver Group's core business is in claims and dispute management and expert witness work where we are fortunate to count many industry-leading proponents among our firm's complement covering much of the developed world. The Group's strategy, which we clarified and articulated during the recent equity raise, is to return our business to its core values and to exploit its considerable expertise, where we have a clear competitive edge and the infrastructure and client relationships to deliver a world class service to many of the world's leading construction firms. In Europe & Americas (EuAm), where we have a relatively mature and well-recognised business, the profitability achieved during the last six months, with a segmental profit margin of just under 10% on GBP13.65m of total revenue, has borne testament to the sense of this strategy. We believe that with further work we can deliver the same performance in Asia Pacific, Middle East and Africa (AMEA), where in this period GBP17.68m of total revenue produced just GBP0.76m of segmental profit. One such imperative, consistent with the Group simplification plan set out in February in conjunction with the equity fund raise, has been the disposal of the business in South Africa where the majority of our turnover came from project management activities and which has been loss making. I am delighted to confirm that, following the period end, we concluded an agreement to dispose of the business to local management (note 7).
FINANCIAL RESULTS
Revenue for the first half of the financial year was GBP32.84m, an increase of 18% on the first half of 2016 (GBP27.90m). The 21% growth in Europe and Americas to GBP13.21m and 27% growth in AMEA to GBP17.65m was offset by the shrinking of the Initiate business by 37% to GBP1.98m. Gross profit grew by GBP2.81m to GBP7.75m when compared to the first half of 2016 (GBP4.94m). Administrative expenses (excluding cost of share options, exceptional items (note 6) and amortisation of intangible assets) increased by GBP0.17m to GBP6.64m when compared to the first half of 2016 (GBP6.47m).
The Group reported an underlying* profit before tax of GBP1.03m (2016: loss of GBP1.51m). After the cost of share options, exceptional items (note 6) and amortisation of intangible assets of GBP0.76m (2016: GBP1.94m) the pre-tax profit for the period was GBP0.27m (2016: loss of GBP3.45m).
The Group's effective tax rate from continuing operations is 7% (2016: 2%) reflecting the geographic make-up of the Group, with UK profits utilising brought forward losses from prior years and with profits in the current period from overseas operations attracting lower tax rates than that prevailing in the UK. Underlying* profit per share was 3.0p (2016: loss per share of 4.7p). After share option costs, exceptional items and amortisation of intangible assets the profit per share was 0.7p (2016: loss of 10.9p). Net assets increased, after the GBP8.5 million equity raise and associated costs to GBP15.91m (2016: GBP8.64m).
Significantly, during the period, the Group raised GBP8.5m via the issue of some 21.2 million shares at 40 pence each in order to restore strength to the balance sheet and which in turn has provided the breathing space to drive through the necessary changes. By the end of March the Group's net borrowing** position had decreased by GBP6.51 million from September 2016, and by GBP3.31 million from March 2016 to GBP3.50 million.
Net cash outflow from operations was GBP1.39m (2016: GBP3.30m), including a net outflow from an increase in trade and other receivables of GBP2.11m (2016: GBP0.23m) and a net cash outflow from a decrease in trade and other payables of GBP0.17m (2016: GBP0.76m). The acquisition of fixed assets absorbed just GBP0.13m (2016: GBP0.50m).
DIVID
The Board does not recommend the payment of an interim dividend (2016: GBPnil).
TRADING PERFORMANCE
By the end of March the actions taken to reduce the unproductive cost base and to focus on the core business meant that headcount was reduced by 10% from the equivalent time last year to 488 (2016: 541) while Group revenue increased by 18%. The change in headcount clearly had the intended impact on utilisation levels which rose 5 percentage points in comparison with the equivalent period last year to 74% (2016: 69%).
Across the Group, the half year saw the turnaround from an underlying* loss in the equivalent period last year of GBP1.51m to an underlying* profit of GBP1.03m. This GBP2.54m improvement was achieved through a combination of revenue increasing from GBP27.90m to GBP32.84m, with gross profit margins improving by 5.9% to 23.6%, with only a small increase in recurring administrative expenses from GBP6.47m to GBP6.64m.
In the Asia Pacific, Middle East and Africa region (AMEA) revenue increased by GBP3.79m to GBP17.65m (2016: GBP13.85m) capitalising on the earlier investment into the region, whilst containing cost increases, resulting in an increase in regional utilisation to 74% (2016: 70%). AMEA reported an underlying profit of GBP0.76m compared to an underlying loss of GBP0.76m in 2016.
In Europe and Americas (EuAm) revenue also increased by GBP2.33m to GBP13.21m (2016: GBP10.89m). With costs managed appropriately in the period and utilisation at 73% (2016: 66%), underlying* profit for the period increased by GBP1.22m to GBP1.31m.
The Initiate project management business acquired in December 2014 reported revenue of GBP1.98m compared to GBP3.16m for the equivalent period last year, with staff utilisation at 80% (2016: 79%). It broke even in the 2017 half year, versus a loss of GBP0.11m in 2016.
Importantly, in addition to growing revenue, the collection of cash from debtors has also received significant attention. We will continue to focus on this issue. As at the end of March 2017 there was GBP1.84m of un-provided debt over twelve months old (2016: GBP1.94m), much of which is sitting in the Middle East.
OUTLOOK
It is the inherent nature of our business that forecasting with any accuracy much beyond twelve weeks ahead is notoriously difficult. That said, your board remains confident of the Group's ability to deliver the market's expectations for the current year. Utilisation levels are steady overall at around 74%, costs are much better controlled and progress is being made in the collection of aged debt.
Ours is very much a people business and on behalf of our senior leadership team of Gordon Wilkinson, Mark Wheeler and Hugh Cawley, I would particularly like to thank every one of our staff, wherever they are in the world, for their hard work and support in what has been a tough but invigorating turnaround in our fortunes. I should also like to thank all our shareholders, established and new, for their continuing support throughout the period. The Group will continue to do its utmost to repay the confidence you have shown in the business.
Steven Norris
Non-Executive Chairman
22 May 2017
Consolidated Income Statement
Interim report for the six months ended 31 March 2017
Hot Features
Premium
6 months ended 6 months ended Year
31 March 2017 31 March 2016 ended
GBP000 GBP000 30 September 2016
Unaudited Unaudited GBP000
Audited
--------------------------------------------------------------- --------------- --------------- -------------------
REVENUE 32,840 27,901 58,261
Cost of sales (25,090) (22,960) (46,579)
--------------------------------------------------------------- --------------- --------------- -------------------
GROSS PROFIT 7,750 4,941 11,682
Administrative expenses (7,399) (8,411) (17,010)
Other operating income 74 119 197
Underlying* operating profit/(loss) 1,184 (1,414) (208)
Share-based payment charge and associated costs (117) (730) (1,141)
Exceptional items (note 6) (544) (1,086) (3,559)
Amortisation of intangible assets (98) (121) (223)
--------------------------------------------------------------- --------------- --------------- -------------------
OPERATING PROFIT/(LOSS) 425 (3,351) (5,131)
Finance income 1 7 14
Finance costs (157) (103) (231)
PROFIT/(LOSS) BEFORE TAXATION 269 (3,447) (5,348)
Tax (expense)/credit (note 2) (20) 63 115
--------------------------------------------------------------- --------------- --------------- -------------------
PROFIT/(LOSS) FOR THE PERIOD 249 (3,384) (5,233)
Profit/(loss) attributable to non-controlling interests 1 (1) (3)
Profit/(loss) attributable to equity shareholders of the
parent 248 (3,383) (5,230)
--------------------------------------------------------------- --------------- --------------- -------------------
249 (3,384) (5,233)
--------------------------------------------------------------- --------------- --------------- -------------------
Basic and diluted earnings/(loss) per share attributable to
equity shareholders of the parent
(pence) (note 5) 0.7p (10.9)p (16.8)p
--------------------------------------------------------------- --------------- --------------- -------------------
Consolidated Statement of Comprehensive Income
Interim report for the six months ended 31 March 2017
Year
6 months ended 6 months ended ended
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
Unaudited Unaudited Audited
--------------- --------------- --------------
PROFIT/(LOSS) FOR THE PERIOD 249 (3,384) (5,233)
--------------- --------------- --------------
Other comprehensive income:
Items that could subsequently be reclassified to the Income
Statement:
Exchange differences on translating foreign operations (85) (72) (49)
=============== =============== ==============
Other comprehensive income for the year net of tax (85) (72) (49)
--------------- --------------- --------------
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD 164 (3,456) (5,282)
--------------- --------------- --------------
Total comprehensive income attributable to:
Owners of the parent 163 (3,455) (5,279)
Non-controlling interest 1 (1) (3)
--------------- --------------- --------------
164 (3,456) (5,282)
--------------- --------------- --------------
Consolidated Statement of Financial Position
At 31 March 2017
*Restated
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
Unaudited Unaudited Audited
-------------------------------- ------------ ----------- ---------------
NON-CURRENT ASSETS
Goodwill 3,456 4,856 3,456
Intangible assets 523 722 621
Property, plant and equipment 2,764 2,959 2,927
Deferred tax asset 22 18 21
================================ ============ =========== ===============
6,765 8,555 7,025
-------------------------------- ------------ ----------- ---------------
CURRENT ASSETS
Trade and other receivables 22,747 16,760 20,346
Derivative financial asset 165 - 454
Cash and cash equivalents 3,081 1,085 555
Current tax receivable - 78 -
-------------------------------- ------------ ----------- ---------------
25,993 17,923 21,355
-------------------------------- ------------ ----------- ---------------
TOTAL ASSETS 32,758 26,478 28,380
-------------------------------- ------------ ----------- ---------------
CURRENT LIABILITIES
Borrowings (128) (780) (3,352)
Trade and other payables (8,685) (9,490) (8,593)
Derivative financial liability (1,220) - (1,395)
Current tax payable (109) (127) (49)
-------------------------------- ------------ ----------- ---------------
(10,142) (10,397) (13,389)
-------------------------------- ------------ ----------- ---------------
NON-CURRENT LIABILITIES
Borrowings (6,454) (7,115) (7,110)
Deferred tax liabilities (256) (331) (301)
-------------------------------- ------------ ----------- ---------------
(6,710) (7,446) (7,411)
-------------------------------- ------------ ----------- ---------------
TOTAL LIABILITIES (16,852) (17,843) (20,800)
-------------------------------- ------------ ----------- --------------- NET ASSETS 15,906 8,635 7,580 SHAREHOLDERS' EQUITY Share capital 213 125 127 Share premium 11,412 3,095 3,453 Merger reserve 1,702 3,102 1,702 Currency reserve (526) (464) (441) Capital redemption reserve 18 18 18 Retained earnings 3,194 2,865 2,829 Own shares (107) (107) (107) -------------------------------- ------------ ----------- --------------- TOTAL SHAREHOLDERS' EQUITY 15,906 8,634 7,581 NON-CONTROLLING INTEREST - 1 (1) -------------------------------- ------------ ----------- --------------- TOTAL EQUITY 15,906 8,635 7,580 -------------------------------- ------------ ----------- ---------------
*Restated to reflect the reallocation of GBP1,609,000 from the share premium account to the merger reserve in relation to shares issued as part of the consideration for the purchase of initiate Consulting Ltd in December 2014. The amount is equal to the difference between the fair value on issue and the nominal value.
Consolidated Cashflow Statement
Interim report for the six months ended 31 March 2017
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
Unaudited Unaudited Audited
---------------------------------------- ----------- ---------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) after taxation 249 (3,384) (5,233)
---------------------------------------- ----------- ---------------- --------------
Adjustments for:
Depreciation 295 230 503
Amortisation 98 121 223
Impairment of goodwill - - 1,400
Exchange adjustments (34) 67 249
Finance income (1) (7) (14)
Finance expense 157 103 231
Tax expense/(credit) 20 (63) (115)
Equity settled share-based
payment cost 117 730 1,141
OPERATING CASH FLOW BEFORE
CHANGES IN WORKING
CAPITAL AND PROVISIONS 901 (2,203) (1,615)
Increase in trade and other
receivables (2,110) (225) (4,184)
(Decrease)/increase in trade
and other payables (171) (760) 434
---------------------------------------- ----------- ---------------- --------------
CASH USED BY OPERATIONS (1,380) (3,188) (5,365)
Tax paid (5) (109) (98)
NET CASH OUTFLOW
FROM OPERATING ACTIVITIES (1,385) (3,297) (5,463)
---------------------------------------- ----------- ---------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 1 7 14
Acquisition of property, plant
and equipment (132) (501) (728)
======================================== =========== ================ ==============
NET CASH OUTFLOW FROM INVESTING
ACTIVITIES (131) (494) (714)
---------------------------------------- ----------- ---------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid (157) (103) (231)
Repayment of borrowings (7,051) (41) (91)
Proceeds of borrowings 6,400 4,089 4,162
Repurchase of share options - (381) (462)
Proceeds from issue of new 8,495 - -
shares
Costs directly attributable (450) - -
to the issue of new shares
Dividends paid to equity shareholders
of the parent - - (320)
======================================== =========== ================ ==============
NET CASH INFLOW
FROM FINANCING ACTIVITIES 7,237 3,564 3,058
---------------------------------------- ----------- ---------------- --------------
Net increase/(decrease) in
cash and cash equivalents 5,721 (227) (3,119)
Effect of foreign exchange
on cash and cash equivalents 34 (67) (249)
Cash and cash equivalents at
start of period (2,674) 694 694
---------------------------------------- ----------- ---------------- --------------
CASH AND CASH EQUIVALENTS AT OF PERIOD 3,081 400 (2,674)
---------------------------------------- ----------- ---------------- --------------
Consolidated Statement of Changes in Equity
Interim report for the six months ended 31 March 2017
For the six months ended 31 March 2017 (Unaudited):
Non-controlling
Share Share Merger Other Retained Own interest Total
capital premium reserve reserves(2) earnings shares Total(1) GBP000 Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
At 1 October
2016 127 3,453 1,702 (423) 2,829 (107) 7,581 (1) 7,580
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
Profit for the
period - - - - 248 - 248 1 249
Other
comprehensive
income for
the period - - - (85) - - (85) - (85)
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
Total
comprehensive
income for
the period - - - (85) 248 - 163 1 164
Issue of new
shares 86 8,409 - - - - 8,495 - 8,495
Costs directly
attributable
to the issue
of new shares - (450) - - - - (450) - (450)
Share-based
payment - - - - 117 - 117 - 117
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
AT 31 MARCH
2017 213 11,412 1,702 (508) 3,194 (107) 15,906 - 15,906
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
For the six months ended 31 March 2016 (Unaudited):
*Restated
Non-controlling
Share Share Merger Other Retained Own interest Total
capital premium reserve reserves(2) earnings shares Total(1) GBP000 Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
At 1 October
2015 125 3,095 3,102 (374) 6,219 (107) 12,060 2 12,062
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
Loss for the
period - - - - (3,383) - (3,383) (1) (3,384)
Other
comprehensive
income for
the period - - - (72) - - (72) - (72) --------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ----------- Total comprehensive income for the period - - - (72) (3,383) - (3,455) (1) (3,456) Dividends - - - - (320) - (320) - (320) Share-based payment - - - - 730 - 730 - 730 Repurchase of share options - - - - (381) - (381) - (381) =============== ========= ========= ========= ============= ========== ======== ========== ================ =========== AT 31 MARCH 2016 125 3,095 3,102 (446) 2,865 (107) 8,634 1 8,635 --------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- -----------
*Restated to reflect the reallocation of GBP1,609,000 from the share premium account to the merger reserve in relation to shares issued as part of the consideration for the purchase of initiate Consulting Ltd in December 2014. The amount is equal to the difference between the fair value on issue and the nominal value.
Consolidated Statement of Changes in Equity (continued)
Interim report for the six months ended 31 March 2017
For the year ended 30 September 2016 (Audited):
Non-controlling
Share Share Merger Other Retained Own interest Total
capital premium reserve reserves(2) earnings shares Total(1) GBP000 Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- --------- --------- ---------- ------------- ---------- -------- ---------- ---------------- ----------
At 1 October
2015 125 3,095 3,102 (374) 6,219 (107) 12,060 2 12,062
--------------- --------- --------- ---------- ------------- ---------- -------- ---------- ---------------- ----------
Loss for the
year - - - - (5,230) - (5,230) (3) (5,233)
Other
comprehensive
income for
the year - - - (49) - - (49) - (49)
--------------- --------- --------- ---------- ------------- ---------- -------- ---------- ---------------- ----------
Total
comprehensive
income for
the year - - - (49) (5,230) - (5,279) (3) (5,282)
Dividends - - - - (320) - (320) - (320)
Share-based
payment - - - - 1,141 - 1,141 - 1,141
Transfer on
impairment of
goodwill - - (1,400) - 1,400 - - - -
Issue of share
capital 2 358 - - - - 360 - 360
Repurchase of
share options - - - - (381) - (381) - (381)
--------------- --------- --------- ---------- ------------- ---------- -------- ---------- ---------------- ----------
AT 30
SEPTEMBER
2016 127 3,453 1,702 (423) 2,829 (107) 7,581 (1) 7,580
--------------- --------- --------- ---------- ------------- ---------- -------- ---------- ---------------- ----------
(1) Total equity attributable to the equity shareholders of the parent
(2) 'Other reserves' combines the currency reserve and capital redemption reserve.
1 BASIS OF PREPARATION
The consolidated interim financial information has been prepared in accordance with the accounting policies that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2017 which are not expected to be significantly different to those set out in note 1 of the Group's audited financial statements for the year ended 30 September 2016. The financial information in this interim report is in compliance with the recognition and measurement principles of IFRS as adopted by the European Union (EU) but does not include all disclosures that would be required under IFRSs. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information. The financial information for the half years ended 31 March 2017 and 31 March 2016 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and is unaudited but has been reviewed by our auditors.
The comparative financial information for the year ended 30 September 2016 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2016 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2016 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
After making enquiries, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the interim consolidated financial statements.
2 TAXATION
The tax charge on the profit for the half-year ended 31 March 2017 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2017.
3 DIVID
In view of the current trading position, the directors do not propose an interim dividend for the half-year ended 31 March 2017 (2016: nil pence per share).
4 SUMMARY SEGMENTAL ANALYSIS
REPORTABLE SEGMENTS
For management purposes, the Group is organised into three operating divisions: EuAm (Europe & Americas), AMEA (APAC, Middle East & Africa) and Initiate. These divisions are the basis on which the Group is structured and managed, based on its geographic structure. In EuAm and AMEA the key service provisions are: quantity surveying, planning / programming, quantum and planning experts, dispute avoidance / resolution, litigation support, contract administration and commercial advice / management. In Initiate the key service provisions are capital investment consultancy providing development, project and contracting management services to the infrastructure market in the UK.
Segment information about these reportable segments is presented below.
Six months ended 31 March 2017
APAC, Middle
Europe & East & Africa
Americas GBP000 Initiate Eliminations Unallocated Consolidated
GBP000 GBP000 GBP000 GBP000 GBP000
----------------- ----------------- ----------------- ----------- --------------- -------------- ---------------
Total external
revenue 13,214 17,647 1,979 - - 32,840
Total
inter-segment
revenue 433 31 5 (469) - -
----------------- ----------------- ----------------- ----------- --------------- -------------- ---------------
Total revenue 13,647 17,678 1,984 (469) - 32,840
----------------- ----------------- ----------------- ----------- --------------- -------------- ---------------
Segmental
profit/(loss) 1,312 755 (6) - - 2,061
Unallocated
corporate
expenses(1) - - - - (877) (877)
Share-based
payment cost - - - - (117) (117)
Exceptional
items (note 6) - - (63) - (481) (544)
Amortisation of
intangible
assets - - (98) - - (98)
================= ================= ================= =========== =============== ============== ===============
Operating
profit/(loss) 1,312 755 (167) - (1,475) 425
Finance income - - - - 1 1
Finance expense - - - - (157) (157)
----------------- ----------------- ----------------- ----------- --------------- -------------- ---------------
Profit/(loss)
before tax 1,312 755 (167) - (1,631) 269 Taxation - - - - (20) (20) ----------------- ----------------- ----------------- ----------- --------------- -------------- --------------- Profit/(loss) for the period 1,312 755 (167) - (1,651) 249 ----------------- ----------------- ----------------- ----------- --------------- -------------- ---------------
(1) Unallocated costs represent Directors' remuneration, administrative staff, corporate head office costs and expenses associated with AIM.
4 SUMMARY SEGMENTAL ANALYSIS - continued
Six months ended 31 March 2016
APAC, Middle
Europe & East & Africa
Americas GBP000 Initiate Eliminations Unallocated Consolidated
GBP000 GBP000 GBP000 GBP000 GBP000
----------------- ----------------- ----------- --------------- -------------- ---------------
Total external
revenue 10,886 13,853 3,162 - - 27,901
Total
inter-segment
revenue 198 77 - (275) - -
----------------- ----------------- ----------- --------------- -------------- ---------------
Total revenue 11,084 13,930 3,162 (275) - 27,901
----------------- ----------------- ----------- --------------- -------------- ---------------
Segmental
profit/(loss) 90 (755) (110) - - (775)
Unallocated
corporate
expenses(1) - - - - (639) (639)
Share-based
payment cost - - - - (730) (730)
Exceptional
items (note 6) (70) - (428) - (588) (1,086)
Amortisation of
intangible
assets - (23) (98) - - (121)
================= ================= =========== =============== ============== ===============
Operating
profit/(loss) 20 (778) (636) - (1,957) (3,351)
Finance income - - - - 7 7
Finance expense - - - - (103) (103)
----------------- ----------------- ----------- --------------- -------------- ---------------
Profit/(loss)
before tax 20 (778) (636) - (2,053) (3,447)
Taxation - - - - 63 63
----------------- ----------------- ----------- --------------- -------------- ---------------
Profit/(loss)
for the period 20 (778) (636) - (1,990) (3,384)
----------------- ----------------- ----------- --------------- -------------- ---------------
Year ended 30 September 2016
APAC, Middle
Europe & East & Africa
Americas GBP000 Initiate Eliminations Unallocated Consolidated
GBP000 GBP000 GBP000 GBP000 GBP000
----------------- ----------------- ----------- --------------- -------------- ---------------
Total external
revenue 22,945 29,440 5,876 - - 58,261
Total
inter-segment
revenue 532 80 - (612) - -
----------------- ----------------- ----------- --------------- -------------- ---------------
Total revenue 23,477 29,520 5,876 (612) - 58,261
----------------- ----------------- ----------- --------------- -------------- ---------------
Segmental
profit/(loss) 1,916 (1,089) (52) - - 775
Unallocated
corporate
expenses(1) - - - - (983) (983)
Share-based
payment cost - - - - (1,141) (1,141)
Exceptional
items (note 6) (535) (504) (1,600) - (920) (3,559)
Amortisation of
intangible
assets - (27) (196) - - (223)
================= ================= =========== =============== ============== ===============
Operating
profit/(loss) 1,381 (1,620) (1,848) - (3,044) (5,131)
Finance income - - - - 14 14
Finance expense - - - - (231) (231)
----------------- ----------------- ----------- --------------- -------------- ---------------
Profit/(loss)
before tax 1,381 (1,620) (1,848) - (3,261) (5,348)
Taxation - - - - 115 115
----------------- ----------------- ----------- --------------- -------------- ---------------
Profit/(loss)
for the period 1,381 (1,620) (1,848) - (3,146) (5,233)
----------------- ----------------- ----------- --------------- -------------- ---------------
(1) Unallocated costs represent Directors' remuneration, administrative staff, corporate head office costs and expenses associated with AIM.
5 EARNINGS PER SHARE
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
----------- ----------- --------------
Profit/(loss) for the financial period attributable to equity shareholders 248 (3,383) (5,230)
Share-based payments cost and associated costs 117 730 1,141
Exceptional items (note 6) 544 1,086 3,559
Amortisation of intangible assets 98 121 223
Adjusted profit/(loss) for the financial period before share-based payments
costs, amortisation
of intangible assets and exceptional items 1,007 (1,446) (307)
---------------------------------------------------------------------------- ----------- ----------- --------------
Weighted average number of shares:
* Ordinary shares in issue 33,896,845 31,101,190 31,251,190
* Shares held by EBT (576,844) (596,677) (596,677)
* Vested options with minimal consideration - 409,602 426,017
---------------------------------------------------------------------------- ----------- ----------- --------------
Basic weighted average number of shares 33,320,001 30,914,115 31,080,530
Effect of employee share options 2,204,656 1,797,545 1,590,610
Diluted weighted average number of shares 35,524,657 32,711,660 32,671,140
============================================================================ =========== =========== ==============
Basic and diluted profit/(loss) per share 0.7p (10.9)p (16.8)p
Adjusted profit/(loss) per share before share-based payment cost,
amortisation of intangible
assets and exceptional items 3.0p (4.7)p (1.0)p
6 EXCEPTIONAL ITEMS
Exceptional items are operating costs that are not expected to be incurred every year and due to their nature and amount are disclosed separately.
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2017 2016 2016
GBP000 GBP000 GBP000
-------------------------------------- ---------- ---------- --------------
Severance costs(1) - 652 1,385
Acquisition and integration costs(2) 63 434 620
Restructuring costs(3) 481 - 154
Impairment of Goodwill - - 1,400
====================================== ========== ========== ==============
544 1,086 3,559
-------------------------------------- ---------- ---------- --------------
(1) Severance costs include redundancy, payment in lieu of notice, ex-gratia, other discretionary payments and associated legal costs.
(2) Acquisition costs include legal and professional fees, office and restructuring costs and post combination employment costs relating to the Initiate acquisition in December 2014.
(3) Restructuring costs include bank charges and legal and professional fees in relation to the requirement of the revised banking facility.
7 POST BALANCE SHEET EVENT
Following the period end, the Group agreed to sell its wholly owned subsidiary in South Africa, Driver Trett South Africa Pty Ltd "DTSA" to the local management team.
In consideration for the disposal, Driver will become entitled to receive the net proceeds from the sale of 300,000 Driver ordinary shares currently owned by the "DTSA" management which must be sold by the 30 June 2017. The total consideration and loss on disposal is not yet fully known as this is dependent on the market price of the shares on the day they are sold, however, Driver has agreed to write-off an inter-company balance due from "DTSA" totalling GBP0.63m. Cash proceeds received from the sale will be utilised for working capital purposes. This disposal has not been reflected in these financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ATMRTMBITBIR
(END) Dow Jones Newswires
May 23, 2017 02:01 ET (06:01 GMT)
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