Driver Share Discussion Threads

[battlebus2] 24/5/2017 09:28

Yes very pleased with the interims as was the market. Director buy announced today is also helpful.

[norbert colon] 22/5/2017 21:43

Thanks BB - interims are due this week (tomorrow?) and will likely be a mixed bag as expected so early into the turnaround but should give a good flavour as to how things are panning out under the new management.

[battlebus2] 22/5/2017 18:17

Thanks Norbert for the new thread, Driver is by all means a different company now so very apt. Looking forward to the next update.

[norbert colon] 22/5/2017 15:54

With kind permission from Curry Pasty who set up the original Driver (DRV) thread back in 2005, I have now created a new thread here and encourage anyone interested in DRV to post there from today onwards.



Many thanks

[norbert colon] 22/5/2017 15:51

!FOLLOWFEED
With permission from Curry Pasty who created the original Driver Group thread, I have created a new thread in-line with the recent significant changes at Driver (DRV) including new management and more focused business strategy.

N+1 Singer are the house broker and forecast revenues of £52m for 2017 rising to £54m by 2019. Equally EPS will rise from 3p for 2017 to 4.1p by 2019 (PE dropping from 15.2 to 11.1)

Importantly the balance sheet is much improved after the recent fund raise and is forecast to move into a net cash position of £2.7m by 2019.

For anyone not familiar with the business the following link (presentation by Mark Wheeler) gives a good overview of the company:

hxxp://webcasting.brrmedia.co.uk/broadcast/5919d52d2fea63527a1ed6c2

Driver Group's competitors include the likes of Hill International, Mace, Sweett (now Currie & Brown) and EC Harris (amongst others); each of these business having an international reputation in the construction industry and having their own claims, disputes and arbitration expertise.

As investors in this sector will already know there has been a huge amount of M&A with companies such as Hyder, Confluence, Scott Wilson, Parsons Brinkerhoff, James R Knowles, Davis Langdon, URS, Mouchel, Parkman, BDP, Sweett Group, Atkins and most recently Waterman all acquired. Project Management and specialist consultants such as Driver are a particular attraction given their relatively higher margins compared to more conventional 'design' consultants and/or those who operate on a high volume / low margin basis.

I would specifically expect one of the large international consultants such as WSP, who are looking to increase headcount by 8000 staff over the next 18 months, to be interested in such an acquisition given they previously lost out to Currie & Brown in their bid for Sweett Group.

Equally, the opportunity for a turnaround is interesting. For a significant number of years DRV had a an operating margin of around 8-10% and generated ROCE of 20%+. With the boardroom shuffle and renewed strategic focus (specifically an emphasis of sticking to what they are good at / high margin work) there is no reason to believe that similar margins are not attainable going forward resulting in EPS of circa 8- 10p over the next 5 years. With the dividend reinstated as they generate cash this will add a further attraction.

Ruffer have an eye for a bargain and picked up 6% of the stock in the recent placing. They were also large holders of Waterman.

After watching the company for many years they now appear to finally have their ship in order and I have invested on the basis of a successful turnaround and/or M&A and see a potential re-rating up to £35m mcap over the next 2-3 years.

As per Waterman, this is one for those with patient money.

[norbert colon] 19/5/2017 16:02

After some thumb sucking I am pleased to confirm that I have finally add DRV to my portfolio after the recent placing and broker notes.

Looking at earnings capability, peer group comparison, the refreshed balance sheet, change in strategy to higher margin / niche business and new management I can foresee a valuation more like GBP 35m (70p) although it wont happen overnight.

Worth watching this to get a good overview of their business:

hxxp://webcasting.brrmedia.co.uk/broadcast/5919d52d2fea63527a1ed6c2

Good luck all.

[battlebus2] 12/5/2017 07:39

Disposal of division

[battlebus2] 07/4/2017 22:38

Yes I took a few a while back but will wait for further updates before buying again though today's update is a step in the right direction. Debt down to 3.5 mm so how long until we are debt free.

[rp19] 07/4/2017 22:21

Further evidence/numbers required but perhaps some signs of green shoots on today's short update.

[battlebus2] 18/2/2017 11:14

I'm only a small private investor.... you must be confusing me with Battlebus ;))

[ed 123] 18/2/2017 11:08

Ah, ok. :-)

[battlebus2] 18/2/2017 11:04

I know what you mean but I wasn't in the loop.

[ed 123] 18/2/2017 10:46

No Ed123, that's for the inst's and holders as of Friday which unfortunately im not one.

Ta, Battlebus2. :-)

From page 2 of the placing notice,

The Company proposes to raise approximately £8 million before expenses by means of a Placing with certain new and existing institutional and other investors ...

(my bold)



As you see, you did have the opportunity to apply for placing shares. I just thought you might have gone for this as there was potentially an easy gain to be made?

[battlebus2] 18/2/2017 09:28

No Ed123, that's for the inst's and holders as of Friday which unfortunately im not one.

[ed 123] 18/2/2017 00:33

Hi Battlebus2.

Did you get some Driver shares in the placing at 40p?

[battlebus2] 17/2/2017 22:12

Yes it's a long way above 35p RP which is great news on the face of it. I will be buying a few on Monday as a long term recovery play.

[rp19] 17/2/2017 21:54

At least they got it away at a bit above 35p. Still got a small amount that I should have sold a long time ago. Will hold for now based on today's news.

[battlebus2] 17/2/2017 20:37

Further news announced after hours about the placing at 40p raising £8 million..

[interceptor2] 17/2/2017 14:47

Same here I see I am in good company.....

A little too early for me, but will monitor for the right time to enter.

[battlebus2] 17/2/2017 14:12

Ah, that is reassuring....

[glasshalfull] 17/2/2017 14:09

Snap battlebus! Exactly same thoughts.

Kind regards
GHF

[battlebus2] 17/2/2017 13:52

Could be an interesting story unfolding, watching for a potential entry point.

[pugugly] 17/2/2017 13:45

Disaster strikes again - sorry for anyone still holding

[rp19] 04/11/2016 18:40

Think it was the non exec transferring from his private account to his SIPP, rather than an outright buy. That said, it is creeping up. A little surprised as I wasn't overly impressed by the last statement. I do, however, hold.

[mallorca 9] 04/11/2016 14:26

Another large purchase today !
This one keeps creeping up.