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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% | 26.00 | 25.00 | 27.00 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Heavy Construction, Nec | 42.63M | -336k | -0.0064 | -40.63 | 13.66M |
From Dec 2022 to Dec 2024
TIDMDRV
RNS Number : 4740C
Driver Group plc
13 June 2023
DRIVER GROUP PLC
Interim Report
For the six months ended 31 March 2023
Key Points - for the six months ended 31 March 2023
Hot Features
Premium
6 months 6 months
Ended Ended
31 March 2023 31 March
GBP000 2022 GBP000 Change
Unaudited Unaudited GBP000
--------------------------- -------------- ------------ -------
Revenue 24,219 24,429 (210)
Gross Profit 6,340 5,882 458
Gross Profit % 26% 24% 2%
--------------------------- -------------- ------------ -------
Profit before tax 508 130 378
Add: Share-based payment
charge 202 272 (70)
Underlying* profit before
tax 710 402 308
--------------------------- -------------- ------------ -------
Underlying* profit before
tax % 3% 2% 1%
Underlying* earnings per
share 1.0p 0.2p 0.8p
Net cash** 5,277 3,678 1,599
-- Underlying* profit before tax at GBP0.7m (2022: GBP0.4m) resulting in an underlying* profit before tax margin of 3% (2022: 2%).
-- Profit before tax at GBP0.5m (2022: GBP0.1m).
-- Net cash** increase year on year of GBP1.6m to GBP5.3m (2022: GBP3.7m).
-- Revenue slightly down to GBP24.2m (2022: GBP24.4m) which is attributable to the restructured Middle East and Asia Pacific regions.
-- Gross profit margin at 26% (2022: 24%), a GBP0.5m increase to GBP6.3m (2022: GBP5.9m).
-- Middle East returned to operational profit pre provisioning.
-- Fee earner headcount decreased to 238 (2022: 294) predominantly attributable to Middle East and Asia Pacific regions.
-- Overall utilisation rates*** improved to 75.6% (2022: 69.6%).
-- Europe & Americas (EuAm) reported underlying* profit before tax for the period of GBP2.9m (2022: GBP2.4m) with utilisation rates*** at 76.1% (2022: 72.7%).
-- Middle East (ME) reported underlying* loss before tax for the period of GBP0.1m (2022: loss GBP0.3m) with utilisation rates*** at 72.3% (2022: 60.9%).
-- Asia Pacific (APAC) reported underlying* loss before tax for the period of GBP0.1m (2022: loss GBP0.5m) with utilisation rates*** at 66.1% (2022: 71.3%).
Mark Wheeler, Chief Executive Officer of Driver Group, said:
'It is a pleasure to see the benefits of last year's restructuring starting to come through in the first half. With all regions currently benefiting from a steady flow of enquiries, the Group is ideally placed to capitalise on global opportunities where and when they arise.
While we continue to have only short-term visibility in terms of fee forecasting, given the nature of our service offering, the Board expects a profitable year with strategic changes to form a solid foundation for future growth.'
Shaun Smith, Non-Executive Chair, said:
'I was delighted to join the Board of Driver Group in March this year as Chair and have been impressed by the enthusiasm and commitment of everyone that I have met since joining and have been encouraged by the performance in the first half. I very much look forward to working with Mark and his team across the business, both in the UK and internationally, as we continue to focus on improving the performance of the Group and delivering enhanced shareholder value.'
Results presentation
Driver Group's leadership team will be hosting a presentation for analysts at 09:30 BST on 13 June 2023. Analysts have already been invited to participate in a Q&A during the presentation, but any eligible person not having received details should contact the Company's PR advisers, Acuitas Communications, at driver@acuitascomms.com or on 020 3745 0293.
The Group will also host a presentation for investors on 15 June, at 10:00 BST. Questions can be submitted before and during the online event.
To register for the webinar, please visit this link:
https://www.equitydevelopment.co.uk/news-and-events/driver-group-results-presentation-15june2023
A recording of the presentation will be available shortly afterwards here:
https://www.equitydevelopment.co.uk/research/tag/driver-group
Enquiries:
Driver Group plc 020 7377 0005 Mark Wheeler (CEO) Charlotte Parsons (CFO) Singer Capital Markets (Nomad & Broker) 020 7496 3000 Sandy Fraser Jen Boorer Alex Emslie Acuitas Communications 020 3745 0293 / 07799 767676 Simon Nayyar simon.nayyar@acuitascomms.com Arthur Dingemans arthur.dingemans@acuitascomms.com
INTRODUCTION
Driver Group is focussed on delivering a return to profitability in the current financial year after the challenges encountered during the FY22 financial year. The Group saw positive progress in Quarter 1 and that momentum continued and strengthened in Quarter 2.
We are pleased to report an increase in the Group's underlying* profit before tax to GBP0.7m from GBP0.4m in the comparative period, in line with the Group's Trading update of 27 April 2023 on revenue which, following the Middle East restructuring, has remained stable. We believe this has been a creditable performance, laying strong foundations for continued improvements to deliver the Group's future profitability.
In common with many of our industry peers and professional services firms more widely, the Group has inevitably been exposed to the effects of the recent global economic headwinds, and the impact that the war in Ukraine has had on some of our clients and their own counterparties, in relation to both work in hand and the deferral of some existing projects in the pipeline.
The EuAm region has continued to perform well and is now established as our central business hub, continuing our focus on global office collaboration, maximising utilisation, improving efficiencies, and delivering cost effectiveness; expert services play a large part in this, and we continue our efforts to increase our number of experts worldwide.
The Middle East region has returned to an operational profit, as a result of the implementation of the realignment of strategy and servicing in the region announced in November 2022 while also significantly reducing the trading risk in the region. We continue to closely monitor performance in the region.
We have seen an improvement in trading performance in APAC, a result of actions taken following the strategic review, and t he Group remains well positioned to expand its work with South Korean clients after a very successful office launch in Seoul in March this year.
The overheads review and cost saving measures, previously announced, are ongoing with some savings already realised and with significant further savings anticipated to take effect from Quarter 4 of FY23 and beyond.
PEOPLE
Driver is a people business and the recruitment and retention of the best people in our sector is a key priority. The Board is pleased to see that the revised Executive board is effectively supporting the CEO and CFO to deliver the Group's strategy which continues to have a positive impact upon the business.
The restructuring of the Middle East and APAC led to a short-term reduction in the number of senior testifying experts in the business, and it is pleasing that the business has already backfilled these positions in other regions, allowing revenue retention for Diales expert work, which is expected to transition to continued growth in these services.
TRADING PERFORMANCE
Group revenue for the six months to 31 March 2023 remained stable at GBP24.2m, compared to the same period in 2022 (GBP24.4m). Overall, the Group reported an increase in underlying profit before tax of GBP0.7m (2022: GBP0.4m).
Revenues in the EuAm region increased to GBP19.1m (2022: GBP17.4m) with revenues in the Middle East down to GBP3.7m (2022: GBP5.4m) and revenues in APAC down to GBP1.4m (2022: GBP1.7m). This is in line with our strategy of EuAm being our central business hub.
The EuAm region delivered an underlying profit of GBP2.9m (2022: GBP2.4m) while the Middle East region recorded an operational profit of GBP0.1m (2022: loss GBP0.2m), underlying loss of GBP0.1m (2022: underlying loss GBP0.3m), and the APAC region recorded an underlying loss of GBP0.1m (2022: underlying loss GBP0.5m).
Underlying*basic earnings per share were 1.0p (2022: 0.2p), and the basic earnings per share was 0.6p (2022: loss 0.3p).
The Group's net cash balance in the period continued to improve totalling GBP5.3m on 31 March 2023 (2022: GBP3.7m).
DIVID
The final dividend announced at the time of the results for the year to 30 September 2022 (0.75p per share) in February was paid in April 2023. Reflecting our confidence in the medium-term prospects for the Group and with the strong balance sheet position the Board recommends the payment of an interim dividend of 0.75p per share for 2023 (2022: 0.75p per share). The interim dividend will be paid on 27 October 2023 to shareholders who are on the register of members at the close of business on 22 September 2023, with an ex-dividend date of 21 September 2023 .
OUTLOOK
Driver Group's business in Europe and the Americas continues to trade very profitably. Performance has strengthened with the implementation of our cost-saving strategies, a limited number of which are already taking effect, and the balance will flow through to the bottom line in the next trading year. Post-restructure, the Middle East are expected to contribute a profit for the current financial year with APAC being well placed to improve further during FY24 as a consequence of work coming out of Korea.
While the second half of the year for Driver has been shown historically to be strong. April was slower than expected owing to the timing of the Easter weekend and a succession of public holidays, which affected utilisation. The Board is currently considering its policy on forward guidance, which will reflect the short-term revenue visibility.
* Underlying figures are stated before the share-based payment costs and exceptional costs
Consolidated Income Statement
Interim report for the six months ended 31 March 2023
6 months ended 6 months Year ended
31 March 2023 ended 30 September
GBP000 31 March 2022
Unaudited 2022 GBP000
GBP000 Audited
Unaudited
REVENUE 24,219 24,429 46,897
Cost of sales (17,729) (18,413) (37,095)
Impairment movement (150) (134) (188)
---------------------------------------------- -------------- ---------- -------------
GROSS PROFIT 6,340 5,882 9,614
Administrative expenses (5,851) (5,767) (12,107)
Other operating income 41 75 167
---------------------------------------------- -------------- ---------- -------------
Underlying* operating profit 732 462 (861)
Exceptional costs - - (1,000)
Share-based payment charge and
associated costs (202) (272) (465)
---------------------------------------------- -------------- ---------- -------------
OPERATING PROFIT/(LOSS) 530 190 (2,326)
Finance income 32 - -
Finance costs (54) (60) (100)
---------------------------------------------- -------------- ---------- -------------
PROFIT/(LOSS) BEFORE TAXATION 508 130 (2,426)
Tax expense (note 2) (207) (309) (460)
---------------------------------------------- -------------- ---------- -------------
PROFIT/(LOSS) FOR THE PERIOD 301 (179) (2,886)
Profit/(loss) attributable to non-controlling
interests - - (2)
Profit/(loss) attributable to equity
shareholders of the parent 301 (179) (2,884)
---------------------------------------------- -------------- ---------- -------------
301 (179) (2,886)
---------------------------------------------- -------------- ---------- -------------
Basic earnings/(loss) per share
attributable to equity shareholders
of the parent (pence) 0.6p (0.3)p (5.5)p
Diluted earnings/(loss) per share
attributable to equity shareholders
of the parent (pence) 0.6p (0.3)p (5.3)p
---------------------------------------------- -------------- ---------- -------------
*Underlying figures are stated before the share-based payment costs (this is not a GAAP measure)
Consolidated Statement of Comprehensive Income
Interim report for the six months ended 31 March 2023
6 months 6 months Year ended
ended ended 30 September
31 March 31 March 2022
2023 2022 GBP000
GBP000 GBP000 Audited
Unaudited Unaudited
---------------------------------------------- ---------- ---------- -------------
PROFIT/(LOSS) FOR THE PERIOD 301 (179) (2,886)
---------------------------------------------- ---------- ---------- -------------
Other comprehensive income/(loss):
Items that could subsequently be reclassified
to the Income Statement:
Exchange differences on translating
foreign operations 473 (187) (970)
---------------------------------------------- ---------- ---------- -------------
Other comprehensive income/(loss)
for the year net of tax 473 (187) (970)
---------------------------------------------- ---------- ---------- -------------
TOTAL COMPREHENSIVE INCOME/(LOSS)
FOR THE PERIOD 774 (366) (3,856)
---------------------------------------------- ---------- ---------- -------------
Total comprehensive income/(loss)
attributable to:
Owners of the parent 774 (366) (3,854)
Non-controlling interest - - (2)
---------------------------------------------- ---------- ---------- -------------
774 (366) (3,856)
---------------------------------------------- ---------- ---------- -------------
Consolidated Statement of Financial Position
Interim report for the six months ended 31 March 2023
6 months ended 6 months Year ended
31 March 2023 ended 30 September
GBP000 31 March 2022
Unaudited 2022 GBP000
GBP000 Audited
Unaudited
------------------------------- -------------- ---------- -------------
NON-CURRENT ASSETS
Goodwill 2,969 2,969 2,969
Property, plant and equipment 344 567 384
Right of use assets 400 2,130 1,375
Intangible asset 756 759 798
Deferred tax assets 202 186 192
------------------------------- -------------- ---------- -------------
4,671 6,611 5,718
------------------------------- -------------- ---------- -------------
CURRENT ASSETS
Trade and other receivables 16,065 20,640 20,281
Current tax receivable 166 360 470
Cash and cash equivalents 5,277 3,678 4,931
------------------------------- -------------- ---------- -------------
21,508 24,678 25,682
------------------------------- -------------- ---------- -------------
TOTAL ASSETS 26,179 31,289 31,400
------------------------------- -------------- ---------- -------------
CURRENT LIABILITIES
Borrowings - - -
Trade and other payables (9,087) (8,409) (11,296)
Derivative financial liability - (384) (1,938)
Lease creditor (317) (938) (754)
Current tax payable - (188) (251)
------------------------------- -------------- ---------- -------------
(9,404) (9,919) (14,239)
------------------------------- -------------- ---------- -------------
NON-CURRENT LIABILITIES
Lease creditor (110) (1,066) (634)
Deferred tax liability (167) (149) (169)
------------------------------- -------------- ---------- -------------
(277) (1,215) (803)
------------------------------- -------------- ---------- -------------
TOTAL LIABILITIES (9,681) (11,134) (15,042)
------------------------------- -------------- ---------- -------------
NET ASSETS 16,498 20,155 16,358
------------------------------- -------------- ---------- -------------
SHAREHOLDERS' EQUITY
------------------------------- -------------- ---------- -------------
Share capital 216 216 216
Share premium 11,496 11,496 11,496
Merger reserve 1,055 1,055 1,055
Currency reserve (908) (598) (1,381)
Capital redemption reserve 18 18 18
Treasury shares (1,525) (1,025) (1,525)
Retained earnings 6,145 8,990 6,478
Own shares (3) (3) (3)
TOTAL SHAREHOLDERS' EQUITY 16,494 20,149 16,354
------------------------------- -------------- ---------- -------------
NON-CONTROLLING INTEREST 4 6 4 ------------------------------- -------------- ---------- ------------- TOTAL EQUITY 16,498 20,155 16,358 ------------------------------- -------------- ---------- -------------
Consolidated Cash flow Statement
Interim report for the six months ended 31 March 2023
6 months ended 6 months Year ended
31 March 2023 ended 30 September
GBP000 31 March 2022
Unaudited 2022 GBP000
GBP000 Audited
Unaudited
------------------------------------------ -------------- ---------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) for the period 301 (179) (2,886)
------------------------------------------ -------------- ---------- -------------
Adjustments for:
Depreciation 84 127 239
Amortisation of right to use assets 375 501 917
Amortisation of intangible asset 42 - 40
Exchange adjustments 105 15 (361)
Finance income (32) - -
Finance expense 54 60 100
Tax expense 207 309 460
Equity settled share-based payment
charge 151 272 229
------------------------------------------ -------------- ---------- -------------
OPERATING CASH FLOW BEFORE CHANGES
IN WORKING CAPITAL AND PROVISIONS 1,287 1,105 (1,262)
Decrease/(increase) in trade and
other receivables 4,283 (1,611) (1,330)
(Decrease)/increase in trade and
other payables (3,562) (235) 4,000
------------------------------------------ -------------- ---------- -------------
CASH GENERATED/(USED) IN OPERATIONS 2,008 (741) 1,408
Tax paid (139) (390) (539)
------------------------------------------ -------------- ---------- -------------
NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES 1,869 (1,131) 868
------------------------------------------ -------------- ---------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------------ -------------- ---------- -------------
Interest received 32 - -
Acquisition of property, plant
and equipment (44) (319) (398)
Proceeds from the disposal of property,
plant and equipment - - 150
Acquisition of intangible asset - (244) (321)
------------------------------------------ -------------- ---------- -------------
NET CASH OUTFLOW FROM INVESTING
ACTIVITIES (12) (563) (569)
------------------------------------------ -------------- ---------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------------ -------------- ---------- -------------
Interest paid (54) (60) (100)
Repayment of borrowings - (1,000) (1,000)
Proceeds of borrowings - 1,000 1,000
Repayment of lease liabilities (961) (635) (821)
Purchase of Treasury shares - - (500)
Dividends paid to the equity shareholders
of the parent (391) (392) (783)
------------------------------------------ -------------- ---------- -------------
NET CASH OUTFLOW FROM FINANCING
ACTIVITIES (1,406) (1,087) (2,204)
------------------------------------------ -------------- ---------- -------------
Net increase/(decrease) in cash
and cash equivalents 451 (2,781) (1,904)
Effect of foreign exchange on cash
and cash equivalents (105) (15) 361
Cash and cash equivalents at start
of period 4.931 6,474 6,474
------------------------------------------ -------------- ---------- -------------
CASH AND CASH EQUIVALENTS AT
OF PERIOD 5,277 3,678 4,931
------------------------------------------ -------------- ---------- -------------
Consolidated Statement of Changes of Equity
Interim Report for the six months ended 31 March 2023
For the six months ended 31 March 2023 (Unaudited):
Non-
Share Share Treasury Merger Other Retained Own controlling Total
capital premium shares reserve reserves(2) earnings shares Total(1) interest Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
CLOSING
BALANCE
AT 30
SEPTEMBER
2022 216 11,496 (1,525) 1,055 (1,363) 6,478 (3) 16,354 4 16,358
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Profit for the
period - - - - - 301 - 301 - 301
Other
comprehensive
loss for the
period - - - - 473 - - 473 - 473
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Total
comprehensive
loss for the
period - - - - 473 301 - 774 - 774
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Contributions
by
and
distributions
to owners
Dividend - - - - - (785) - (785) - (785)
Share-based
payment
charge - - - - - 151 - 151 - 151
Purchase of - - - - - - - - - -
Treasury
shares
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Total
contributions
by and
distributions
to owners - - - - - (634) - (634) - (634)
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
CLOSING
BALANCE
AT 31 MARCH
2022 216 11,496 (1,525) 1,055 (890) 6,145 (3) 16,494 4 16,498
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
For the six months ended 31 March 2022 (Unaudited):
Non-
Share Share Treasury Merger Other Retained Own controlling Total
capital premium shares reserve reserves(2) earnings shares Total(1) interest Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
CLOSING
BALANCE
AT 30
SEPTEMBER
2021 216 11,496 (1,025) 1,055 (393) 9,916 (3) 21,262 6 21,268
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Loss for the
period - - - - - (179) - (179) - (179)
Other
comprehensive
loss for the
period - - - - (187) - - (187) - (187)
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Total
comprehensive
loss for the
period - - - - (187) (179) - (366) - (366)
-------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Contributions
by
and
distributions
to owners
Dividend - - - - - (783) - (783) - (783)
Share-based
payment
charge - - - - - 36 - 36 - 36 Purchase of - - - - - - - - - - Treasury shares -------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- ------- Total contributions by and distributions to owners - - - - - (747) - (747) - (747) -------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- ------- CLOSING BALANCE AT 31 MARCH 2022 216 11,496 (1,025) 1,055 (580) 8,990 (3) 20,149 6 20,155 -------------- -------- -------- -------- -------- ----------- -------- ------- -------- ----------- -------
Consolidated Statement of Changes of Equity (continued)
Interim Report for the six months ended 31 March 2023
For the year ended 30 September 2022 (Audited):
Non-
Share Share Treasury Merger Other Retained Own controlling Total
capital premium shares reserve reserves(2) earnings shares Total(1) interest Equity
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------- ------- ------- -------- ------- ----------- -------- ------- -------- ----------- -------
OPENING BALANCE
AT 1 OCTOBER
2021 216 11,496 (1,025) 1,055 (393) 9,916 (3) 21,262 6 21,268
----------------- ------- ------- -------- ------- ----------- -------- ------- -------- ----------- ---------
Loss for the year - - - - - (2,884) - (2,884) (2) (2,886)
Other
comprehensive
income for the
year - - - - (970) - - (970) - (970)
----------------- ------- ------- -------- ------- ----------- -------- ------- -------- ----------- ---------
Total
comprehensive
income for the
year - - - - (970) (2,884) - (3,854) (2) (3,856)
----------------- ------- ------- -------- ------- ----------- -------- ------- -------- ----------- ---------
Dividends - - - - - (783) - (793) - (783)
Share-based
payment
charge and
associated
costs - - - - - 229 - 229 - 229
Purchase of
Treasury
shares - - (500) - - - - (500) - (500)
----------------- ------- ------- -------- ------- ----------- -------- ------- -------- ----------- ---------
CLOSING BALANCE
AT 30 SEPTEMBER
2022 216 11,496 (1,525) 1,055 (1,363) 6,478 (3) 16,354 4 16,358
----------------- ------- ------- -------- ------- ----------- -------- ------- -------- ----------- ---------
(1) Total equity attributable to the equity holders of the Parent
(2) 'Other reserves' combines the currency reserve and capital redemption reserve. The movement in the current and prior year relates to the translation of foreign currency equity balances and foreign currency non-monetary items.
1 BASIS OF PREPARATION
The consolidated interim financial information has been prepared using accounting policies which are consistent with those applied at the prior year end 30 September 2022 and that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2023. The financial information in this interim report is in compliance with the recognition and measurement principles of international accounting standards but does not include all disclosures that would be required under IFRSs and are not IAS 34 compliant. 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 2023 and 31 March 2022 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 2022 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2022 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2022 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.
The Financial Statements have been prepared on a going concern basis. In reaching their assessment, the Directors have considered a period extending at least twelve months from the date of approval of this financial report.
The Directors have prepared cash flow forecasts covering a period of more than 12 months from the date of releasing these financial statements. This assessment has included consideration of the forecast performance of the business for the foreseeable future and the cash and financing facilities available to the Group. At 31 March 2023 the Group had cash reserves of GBP5.3m. The strong trading performance and cash collections in the period resulted in a cash increase of GBP0.4m from that reported at 30 September 2022.
The Directors have also prepared a stress case scenario that demonstrates the Group's ability to continue as a going concern even with a significant drop in revenues and limited mitigating cost reduction to re-align with the revenue drop.
Based on the cash flow forecasts prepared including appropriate stress testing, the Directors are confident that any funding needs required by the business will be sufficiently covered by the existing cash reserves. As such these Financial Statements have been prepared on a going concern basis.
2 TAXATION
The tax charge for the half-year ended 31 March 2023 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2023.
3 DIVID
In view of the medium-term prospects for the Group along with the strong balance sheet position, the Board recommends the payment of an interim dividend of 0.75p per share for 2023 (2022: 0.75p per share).
During the period, the Group paid an interim dividend for 2022 of 0.75p per share (2022: 0.75p per share) and approved a final dividend for 2022 of 0.75p per share which was paid in April 2023.
4 POST BALANCE SHEET EVENT
There have been no significant events requiring disclosure since 31 March 2023.
5 SUMMARY SEGMENTAL ANALYSIS
REPORTABLE SEGMENTS
For management purposes, the Group is organised into three operating divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific (APAC). These divisions are the basis on which the Group is structured and managed, based on its geographic structure. The following key service provisions are provided across all three operating divisions: quantity surveying, planning / programming, quantum and planning experts, dispute avoidance / resolution, litigation support, contract administration and commercial advice / management. Segment information about these reportable segments is presented below.
Europe Middle Asia
Six months ended 31 March & Americas East Pacific Eliminations Unallocated Consolidated
2023 (Unaudited) GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Total external revenue 19,128 3,724 1,367 - - 24,219
Total inter-segment revenue 760 237 318 (1,315) - -
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Total revenue 19,888 3,961 1,685 (1,315) - 24,219
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Segmental profit/(loss) (2) 2,939 (92) (144) - - 2,703
Unallocated corporate expenses
(1)(2) - - - - (1,971) (1,971)
Share-based payment charge - - - - (202) (202)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Operating profit/(loss) 2,939 (92) (144) - (2,173) 530
Finance income - - - - 32 32
Finance expense - - - - (54) (54)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Profit/(loss) before taxation 2,939 (92) (144) - (2,195) 508
Taxation - - - - (207) (207)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Profit/(loss) for the period 2,939 (92) (144) - (2,402) 301 ------------------------------- ----------- ------- -------- ------------ ----------- ------------
(1) Unallocated costs represent Directors' remuneration, administration staff, corporate head office costs and expenses associated with AIM.
(2) Unallocated corporate expenses are stated before the central recharge. Historically a recharge was recognised monthly. The prior year comparative figure below of GBP1.1m is net of a cross charge amount totalling GBP0.6m.
Europe Middle Asia
Six months ended 31 March & Americas East Pacific Eliminations Unallocated Consolidated
2022 (Unaudited) GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Total external revenue 17,370 5,405 1,654 - - 24,429
Total inter-segment revenue 746 450 290 (1,486) - -
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Total revenue 18,116 5,855 1,944 (1,486) - 24,429
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Segmental profit/(loss) 2,377 (332) (485) - - 1,560
Unallocated corporate expenses
(1) - - - - (1,098) (1,098)
Share-based payment charge - - - - (272) (272)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Operating profit/(loss) 2,377 (332) (485) - (1,370) 190
Finance income - - - - - -
Finance expense - - - - (60) (60)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Profit/(loss) before taxation 2,377 (332) (485) - (1,430) 130
Taxation - - - - (309) (309)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Profit/(loss) for the period 2,377 (332) (485) - (1,739) (179)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
(1) Unallocated costs represent Directors' remuneration, administration staff, corporate head office costs and expenses associated with AIM.
Europe Middle Asia
Year ended 30 September & Americas East Pacific Eliminations Unallocated Consolidated
2022 (A udited ) GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Total external revenue 35,089 8,063 3,745 - - 46,897
Total inter-segment revenue 1,093 754 551 (2,398) - -
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Total revenue 36,182 8,817 4,296 (2,398) - 46,897
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Segmental profit/(loss) 3,923 (1,814) (544) - - 1,565
Unallocated corporate expenses
(1) - - - - (2,426) (2,426)
Share-based payments charge
and associated costs - - - - (465) (465)
Exceptional costs - - - - (1,000) (1,000)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Operating profit/(loss) 3,923 (1,814) (544) - (3,891) (2,326)
Finance income - - - - - -
Finance expense - - - - (100) (100)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Profit/(loss) before taxation 3,923 (1,814) (544) - (3,991) (2,426)
Taxation - - - - (460) (460)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
Profit/(loss) for the period 3,923 (1,814) (544) - (4,451) (2,886)
------------------------------- ----------- ------- -------- ------------ ----------- ------------
(1) Unallocated costs represent Directors' remuneration, administration staff, corporate head office costs and expenses associated with AIM.
6 EARNINGS PER SHARE
6 months 6 months
ended ended Year ended
31 March 31 March 30 September
2023 2022 2022
GBP000 GBP000 GBP000
Unaudited Unaudited Audited
----------------------------------------------- ----------- ----------- -------------
Profit/(loss) for the financial period
attributable to equity shareholders 301 (179) (2,884)
Exceptional costs - - 1,000
Share-based payments cost and associated
costs 202 272 465
----------------------------------------------- ----------- ----------- -------------
Underlying* profit/(loss) for the financial
period 503 93 (1,419)
----------------------------------------------- ----------- ----------- -------------
Weighted average number of shares:
- Ordinary shares in issue 53,962,868 53,962,868 53,962,868
- Shares held by EBT (3,677) (3,677) (3,677)
- Treasury shares (1,642,543) (1,687,208) (1,405,839)
----------------------------------------------- ----------- ----------- -------------
Basic weighted average number of shares 52,316,648 52,271,983 52,553,352
Effect of employee share options 1,618,097 2,684,905 2,309,028
----------------------------------------------- ----------- ----------- -------------
Diluted weighted average number of shares 53,934,745 54,956,888 54,862,380
----------------------------------------------- ----------- ----------- -------------
Basic earnings/(loss) per share attributable
to equity shareholders of the Parent (pence) 0.6p (0.3)p (5.5)p
Diluted earnings/(loss) per share attributable
to equity shareholders of the Parent (pence) 0.6p (0.3)p (5.3)p
Underlying* basic earnings/(loss) per
share 1.0p 0.2p (2.7)p
----------------------------------------------- ----------- ----------- -------------
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END
IR UURURORUNAUR
(END) Dow Jones Newswires
June 13, 2023 02:00 ET (06:00 GMT)
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