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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 | 21,584 | 07:36:25 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Heavy Construction, Nec | 42.63M | -336k | -0.0064 | -38.28 | 12.87M |
From May 2019 to May 2024
TIDMDRV
RNS Number : 2632Q
Driver Group plc
05 June 2018
5 June 2018
DRIVER GROUP PLC
("Driver" or "the Group")
Interim Report
For the six months ended 31 March 2018
Key Points (for the six months ended 31 March 2018)
Hot Features
Premium
6 months 6 months
ended 31 ended 31
March 2018 March 2017 Change
GBP000 GBP000 GBP000
---------------------------------------------- ------------ ------------ -------
Revenue 31,694 30,861 833
Gross Profit 8,887 7,491 1,396
Gross Profit % 28% 24% 4%
Profit before tax from continuing operations 1,726 436 1,290
Add: Share-based payment costs 379 117 262
Add: Exceptional items - 481 (481)
Underlying* profit before tax 2,105 1,034 1,071
---------------------------------------------- ------------ ------------ -------
Underlying* profit before tax % 7% 3% 4%
Underlying* earnings per share 3.4p 3.0p 0.4p
Net cash/(borrowings)** 838 (3,501) 4,339
-- Revenue up by 3% to GBP31.7m (2017: GBP30.9m), rising to 5% when removing the impact of the South African business disposed of in the year ended 30 September 2017
-- Gross profit up to 28% resulting in GBP1.4m increase to GBP8.9m (2017: GBP7.5m)
-- Underlying* PBT up 104% to GBP2.1m (2017: GBP1.03m) resulting in an underlying* PBT margin of 7% (2017: 3%)
-- Net cash at 31 March 2018 of GBP0.8m (2017: net borrowings(**) GBP3.5m)
-- Fee earner headcount increased by 23 to 387 on continuing business mainly as a result of growth in APAC region. Overall utilisation rates up 7.4% points to 81.6%
-- Asia Pacific (APAC) reported underlying* PBT for the period GBP0.6m compared with a loss GBP0.1m with utilisation rates at 91.6%
-- Middle East (ME) reported underlying* PBT for the period of GBP1.3m up 19% with utilisation rates at 83.5%
-- Europe & Americas (EuAm) reported underlying* PBT for the period of GBP1.4m up 4% with utilisation rates at 73.6%
-- Head office property sale and leaseback completed on 20 April 2018
* Underlying figures are stated before the share-based payment costs 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 has built on the turnaround of the Group's performance in the year ended 30 September 2017, the Group has continued to deliver on the strategy laid out at the time of the refinancing last year, by producing profit growth and debt reduction. Along with the remedial actions taken last year to restore the business to profit and bring stability to the balance sheet, the Group has concluded on the sale and leaseback of the head office property in April 2018 as promised at the time of the refinancing last year. Whilst the financial improvement is very pleasing we are of course far from complacent and we remain focused on delivering further profit growth and cash generation over the coming months and years."
Enquiries Driver Group plc Gordon Wilkinson, Group Chief Executive David Kilgour, CFO +44 (0)20 377 0005 N+1 Singer (Nominated Adviser) Sandy Fraser +44 (0)20 7496 3000 Acuitas Communications (Financial PR) Simon Nayyar Fraser Schurer-Lewis +44 (0)20 3687 0868
INTRODUCTION
Building on the turnaround of the Group's performance in the year ended 30 September 2017, the Group has continued to deliver on the strategy laid out at the time of the refinancing last year, by producing profit growth and debt reduction. Along with the remedial actions taken last year to restore the business to profit and bring stability to the balance sheet, the Group has concluded on the sale and leaseback of the head office property in April 2018 as promised at the time of the refinancing last year. Whilst the financial improvement is very pleasing we are of course far from complacent and we remain focused on delivering further profit growth and cash generation over the coming months and years. I am confident that the Group is well-placed to deliver consistently in its core business.
The Group's core business is in claims and dispute management and expert witness work. We are fortunate to count many industry-leading proponents among our firm's complement which gives us strong client relationships and a competitive edge whilst having a reputation for delivering a world class service. The Group is structured into three regions covering much of the developed world. 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 GBP1.4m on GBP14.3m of total revenue, has borne testament to the sense of this strategy. In the Middle East (ME) and Asia Pacific (APAC) regions the local management teams have delivered excellent results where ME produced revenue of GBP12.0m and profit of GBP1.3m and APAC produced revenue of GBP5.4m and profit of GBP0.6m.
FINANCIAL RESULTS
Revenue for the first half of the financial year was GBP31.7m, an increase of 3% on the first half of 2017 (GBP30.9m). The 7.9% revenue growth in EuAm to GBP14.3m, and the 57.5% revenue growth in APAC to GBP5.4m were offset by the reduction in revenues in the ME business by 11.8% to GBP12.0m as a consequence of a major commission coming to an end. Gross profit grew by GBP1.4m to GBP8.9m when compared to the first half of 2017 (GBP7.5m). Administrative expenses increased by GBP0.1m to GBP7.1m when compared to the first half of 2017 (GBP7.0m).
The Group reported an underlying* profit before tax of GBP2.1m (2017: GBP1.0m). The operating profit amounted to GBP1.8m (2017: GBP0.6m) and the pre-tax profit for the period was GBP1.7m (2017: GBP0.4m).
The Group's effective tax rate from continuing operations is 17% 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 in overseas operations at local tax rates and no brought forward tax losses. Underlying* profit per share was 3.4p (2017: 3.0p). After share-based payment costs and exceptional items the profit per share was 2.7p (2017: 0.7p).
The Group has improved from a net borrowings** position of GBP3.5 million at 31 March 2017 and net borrowings** of GBP0.2m at the end of September 2017 to a net cash** position of GBP0.8m as at 31 March 2018.
Net cash inflow from operations was GBP1.3m (2017: GBP1.4m cash outflow) during the first six months, including a net outflow from an increase in trade and other receivables of GBP2.1m (2017: GBP2.1m) and a net cash inflow from a decrease in trade and other payables of GBP0.9m (2017: GBP0.2m outflow). The acquisition of fixed assets absorbed GBP0.2m (2017: GBP0.1m).
DIVID
The Board does not recommend the payment of an interim dividend (2017: GBPnil). The Board continues to keep dividend policy under review and is committed to restoring dividend payments when appropriate in the future.
TRADING PERFORMANCE
During the six-month period to 31 March 2018 the headcount rose by 6.6% to 467 after adjusting for the effect of the business disposals during 2017. This mainly reflected a 6.3% increase in fee-earners of which more than half were sub-contractors in the UK and APAC regions. Overall staff utilisation levels rose during the period to 81.6% (2017: 74.2%) thanks largely to excellent performances in the APAC and ME regions.
Across the Group, the half year saw a 104% increase in the underlying* profit, from the equivalent period last year, to GBP2.1m (2017: GBP1.0m). This GBP1.1m improvement was achieved through a combination of a small revenue increase with gross profit margins improving to 28%, and staff utilisation rates increasing from 74.2% to 81.6%.
In APAC region revenues increased by GBP2.0m to GBP5.4m reflecting the benefit of restructuring and focussed business development in the region. As a result the region delivered a profit of GBP0.6m (2017: loss GBP0.1m) largely as a result of the Singapore business.
In the ME region revenue decreased by GBP1.6m to GBP12.0m as a result of a major commission reaching completion, however, profit increased by 19% to GBP1.3m as a result of good cost management. Within the region particularly good results were achieved by Qatar and Kuwait which delivered revenue increases of 82% and 114%.
The EuAm region delivered revenue growth of 7.9% to GBP14.3m and profit growth of 4.4% to GBP1.4m. Within this the Driver Trett UK business delivered an increase in revenue of 22.3% to GBP7.3m and profit of 22.5% to GBP1.6m whilst mainland Europe revenues fell by GBP0.5m to GBP2.9m resulting in a fall in profit to GBP0.1m. The UK Driver Project Services business delivered an increase in revenue of 11.5% to GBP3.4m which resulted in a 72.2% profit increase to GBP0.3m.
Additionally, it continues, as always, to be important to convert the profit growth into operational cash inflows and we continue to closely monitor our performance and gradually collect the older Middle East debt.
OUTLOOK
It is the inherent nature of our business that forecasting with any accuracy much beyond twelve weeks ahead is notoriously difficult. That said, the profit booked in the first half leaves the Group increasingly well placed to record good progress in the current financial year. Staff utilisation rates are steady overall at levels in excess of 80%, 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 David Kilgour, 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. The Group will continue to do its utmost to repay the confidence you have shown in the business.
Steven Norris
Non-Executive Chairman
4 June 2018
Consolidated Income Statement
Interim report for the six months ended 31 March 2018
6 months 6 months ended Year
ended 31 March 2017 ended
31 March 2018 GBP000 30 September 2017
GBP000 Unaudited GBP000
Unaudited Restated** Audited
------------------------------------------------------------ --------------- --------------- ----------------------
REVENUE 31,694 30,861 60,227
Cost of sales (22,807) (23,370) (45,391)
------------------------------------------------------------ --------------- --------------- ----------------------
GROSS PROFIT 8,887 7,491 14,836
Administrative expenses (7,146) (6,973) (13,485)
Other operating income 69 74 143
Underlying* operating profit 2,189 1,190 2,747
Share-based payment charge and associated costs (379) (117) (170)
Exceptional items (note 6) - (481) (1,083)
============================================================ =============== =============== ======================
OPERATING PROFIT 1,810 592 1,494
Finance income 2 1 1
Finance costs (86) (157) (262)
PROFIT BEFORE TAXATION 1,726 436 1,233
Tax (expense)/credit (note 2) (297) (39) 38
============================================================ =============== =============== ======================
PROFIT FROM CONTINUING OPERATIONS 1,429 397 1,271
------------------------------------------------------------ --------------- --------------- ----------------------
Loss on discontinued operation, net of tax - (148) (976)
------------------------------------------------------------ --------------- --------------- ----------------------
PROFIT FOR THE PERIOD 1,429 249 295
------------------------------------------------------------ --------------- --------------- ----------------------
Profit attributable to non-controlling interests from
continuing operations - 1 4
Loss attributable to non-controlling interests from
discontinued operations - - -
Profit attributable to equity shareholders of the parent
from continuing operations 1,429 396 1,267
Loss attributable to equity shareholders of the parent from
discontinued operations - (148) (976)
------------------------------------------------------------ --------------- --------------- ----------------------
1,429 249 295
------------------------------------------------------------ --------------- --------------- ----------------------
Basic earnings per share attributable to equity
shareholders of the Parent (pence) 2.7p 0.7p 0.7p
------------------------------------------------------------ --------------- --------------- ----------------------
Diluted earnings per share attributable to equity
shareholders of the Parent (pence) 2.6p 0.7p 0.6p
------------------------------------------------------------ --------------- --------------- ----------------------
Basic earnings per share attributable to equity
shareholders of the Parent (pence) from continuing
operations 2.7p 1.2p 2.9p
------------------------------------------------------------ --------------- --------------- ----------------------
Diluted earnings per share attributable to equity
shareholders of the Parent (pence) from
continuing operations 2.6p 1.1p 2.8p
------------------------------------------------------------ --------------- --------------- ----------------------
*Underlying figures are stated before the share-based payment costs and exceptional items (note 6).
**Restated to reflect discontinued operations
Consolidated Statement of Comprehensive Income
Interim report for the six months ended 31 March 2018
Year
6 months ended 6 months ended ended
31 March 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Unaudited Unaudited Audited
-------------------------------------------------------------------- --------------- --------------- --------------
PROFIT FOR THE PERIOD 1,429 249 295
-------------------------------------------------------------------- --------------- --------------- --------------
Other comprehensive income:
Items that could subsequently be reclassified to the Income
Statement:
Exchange differences on translating foreign operations 12 (85) (18)
-------------------------------------------------------------------- =============== =============== ==============
Other comprehensive income for the year net of tax 12 (85) (18)
-------------------------------------------------------------------- --------------- --------------- --------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 1,441 164 277
-------------------------------------------------------------------- --------------- --------------- --------------
Total comprehensive income attributable to:
Owners of the parent 1,441 163 273
Non-controlling interest - 1 4
-------------------------------------------------------------------- --------------- --------------- --------------
1,441 164 277
-------------------------------------------------------------------- --------------- --------------- --------------
Consolidated Statement of Financial Position
At 31 March 2018
31 March 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Unaudited Unaudited Audited
-------------------------------- ----------- ----------- -------------
NON-CURRENT ASSETS
Goodwill 2,969 3,456 2,969
Intangible assets - 523 -
Property, plant and equipment 810 2,764 950
Deferred tax asset 64 22 58
================================ =========== =========== =============
3,843 6,765 3,977
-------------------------------- ----------- ----------- -------------
CURRENT ASSETS
Trade and other receivables 20,976 22,747 18,859
Derivative financial asset 390 165 531
Cash and cash equivalents 5,814 3,081 4,932
Asset held for sale - note 7 1,614 - 1,614
================================ =========== =========== =============
28,794 25,993 25,936
-------------------------------- ----------- ----------- -------------
TOTAL ASSETS 32,637 32,758 29,913
-------------------------------- ----------- ----------- -------------
CURRENT LIABILITIES
Borrowings (662) (128) (527)
Trade and other payables (9,223) (8,685) (8,352)
Derivative financial liability - (1,220) (12)
Current tax payable (354) (109) (175)
-------------------------------- ----------- ----------- -------------
(10,239) (10,142) (9,066)
-------------------------------- ----------- ----------- -------------
NON-CURRENT LIABILITIES
Borrowings (4,314) (6,454) (4,583)
Deferred tax liabilities (127) (256) (127)
-------------------------------- ----------- ----------- -------------
(4,441) (6,710) (4,710)
-------------------------------- ----------- ----------- -------------
TOTAL LIABILITIES (14,680) (16,852) (13,776)
-------------------------------- ----------- ----------- -------------
NET ASSETS 17,957 15,906 16,137
SHAREHOLDERS' EQUITY
Share capital 215 213 215
Share premium 11,475 11,412 11,475
Merger reserve 1,055 1,702 1,055
Currency reserve (447) (526) (459)
Capital redemption reserve 18 18 18
Retained earnings 5,745 3,194 3,937
Own shares (107) (107) (107)
-------------------------------- ----------- ----------- -------------
TOTAL SHAREHOLDERS' EQUITY 17,954 15,906 16,134
NON-CONTROLLING INTEREST 3 - 3
-------------------------------- ----------- ----------- -------------
TOTAL EQUITY 17,957 15,906 16,137
-------------------------------- ----------- ----------- -------------
Consolidated Cashflow Statement
Interim report for the six months ended 31 March 2018
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Unaudited Unaudited Audited
---------------------------------------------- ----------- ----------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Profit after taxation 1,429 249 295
---------------------------------------------- ----------- ----------- --------------
Adjustments for:
Depreciation 296 295 601
Amortisation - 98 621
Exchange adjustments 33 (34) 51
Loss on disposal of subsidiary - - 796
Finance income (2) (1) (1)
Finance expense 86 157 262
Tax expense/(credit) 297 20 (38)
Equity settled share-based payment cost 379 117 170
---------------------------------------------- ----------- ----------- --------------
OPERATING CASH FLOW BEFORE CHANGES IN
WORKING
CAPITAL AND PROVISIONS 2,518 901 2,757
(Increase)/decrease in trade and other
receivables (2,051) (2,110) 833
Increase/(decrease) in trade and other
payables 862 (171) (1,378)
---------------------------------------------- ----------- ----------- --------------
CASH GENERATED/(USED) BY OPERATIONS 1,329 (1,380) 2,212
Tax paid (115) (5) (29)
---------------------------------------------- ----------- ----------- --------------
NET CASH INFLOW/(OUTFLOW)
FROM OPERATING ACTIVITIES 1,214 (1,385) 2,183
---------------------------------------------- ----------- ----------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 2 1 1
Acquisition of property, plant and equipment (156) (132) (264)
Disposal of subsidiary net of cash acquired 75 - 12
---------------------------------------------- ----------- ----------- --------------
NET CASH OUTFLOW FROM INVESTING ACTIVITIES (79) (131) (251)
---------------------------------------------- ----------- ----------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid (86) (157) (262)
Repayment of borrowings (134) (7,051) (7,123)
Proceeds of borrowings - 6,400 5,000
Proceeds from issue of new shares - 8,495 8,560
Costs directly attributable to the issue
of new shares - (450) (450)
---------------------------------------------- ----------- ----------- --------------
NET CASH (OUTFLOW)/INFLOW
FROM FINANCING ACTIVITIES (220) 7,237 5,725
---------------------------------------------- ----------- ----------- --------------
Net increase in cash and cash equivalents 915 5,721 7,657
Effect of foreign exchange on cash and
cash equivalents (33) 34 (51)
Cash and cash equivalents at start of
period 4,932 (2,674) (2,674)
---------------------------------------------- ----------- ----------- --------------
CASH AND CASH EQUIVALENTS AT OF
PERIOD 5,814 3,081 4,932
---------------------------------------------- ----------- ----------- --------------
Consolidated Statement of Changes in Equity
Interim Report for the six months ended 31March 2018
For the six months ended 31 March 2018 (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
2017 215 11,475 1,055 (441) 3,937 (107) 16,134 3 16,137
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Profit for the
period - - - - 1,429 - 1,429 - 1,429
Other
comprehensive
income for
the period - - - 12 - - 12 - 12
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Total
comprehensive
income for
the period - - - 12 1,429 - 1,441 - 1,441
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Contributions
by and
distributions
to owners
Share-based
payment
charge and
associated
costs - - - - 379 - 379 - 379
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Total
contributions
by and
distributions
to owners - - - 12 1,808 - 1,820 - 1,820
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
AT 31 MARCH
2018 215 11,475 1,055 (429) 5,745 (107) 17,954 3 17,957
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
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
=============== ========= ========= ========= ============= ========== ======== ========== ================ =========
Contributions
by and
distributions
to owners
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
charge and
associated
costs - - - - 117 - 117 - 117
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Total
contributions
by and
distributions
to owners 86 7,959 - - 117 - 8,162 - 8,162
=============== ========= ========= ========= ============= ========== ======== ========== ================ =========
AT 31 MARCH
2017 213 11,412 1,702 (508) 3,194 (107) 15,906 - 15,906
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Consolidated Statement of Changes in Equity (continued)
Interim report for the six months ended 31 March 2018
For the year ended 30 September 2017 (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
2016 127 3,453 1,702 (423) 2,829 (107) 7,581 (1) 7,580
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Profit for the
year - - - - 291 - 291 4 295
Other
comprehensive
income for
the year - - - (18) - - (18) - (18)
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Total
comprehensive
income for
the year - - - (18) 291 - 273 4 277
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Contributions
by and
distributions
to owners
Share-based
payment
charge and
associated
costs - - - - 170 - 170 - 170
Transfer on
disposal of
Initiate - - (647) - 647 - - - -
Issue of share
capital 88 8,472 - - - - 8,560 - 8,560
Costs directly
attributable
to the issue
of new shares - (450) - - - - (450) - (450)
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
Total
contributions
by and
distributions
to owners 88 8,022 (647) - 817 - 8,280 - 8,280
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
AT 30
SEPTEMBER
2017 215 11,475 1,055 (441) 3,937 (107) 16,134 3 16,137
--------------- --------- --------- --------- ------------- ---------- -------- ---------- ---------------- ---------
(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 2018 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 2017. 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 2018 and 31 March 2017 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 2017 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2017 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2017 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 2018 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2018.
3 DIVID
In view of the current trading position, the directors do not propose an interim dividend for the half-year ended 31 March 2018 (2017: nil pence per share).
4 SUMMARY SEGMENTAL ANALYSIS
REPORTABLE SEGMENTS
For management purposes, the Group is now organised into three operating divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific (APAC). This has changed from the previous operating divisions of Europe & Americas (EuAm) and Africa, Middle East and Asia Pacific (AMEA), due to the disposal of the African subsidiary in May 2017 and the dismantling of the AMEA central management team in late 2016. These divisions are now 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.
Six months ended 31 March 2018 (Unaudited)
Europe & Middle Asia Discontinued
Americas East Pacific Africa Eliminations Unallocated(1) Consolidated Initiate
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Total external
revenue 14,258 11,994 5,442 - - - 31,694 -
Total
inter-segment
revenue 53 26 2 - (81) - - -
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Total revenue 14,311 12,020 5,444 - (81) - 31,694 -
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Segmental
profit 1,370 1,289 635 - - - 3,294 -
Unallocated
corporate
expenses(1) - - - - - (1,105) (1,105) -
Share-based
payment cost - - - - - (379) (379) -
Operating
profit/(loss) 1,370 1,289 635 - - (1,484) 1,810 -
Finance income - - - - - 2 2 -
Finance
expense - - - - - (86) (86) -
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Profit/(loss)
before tax 1,370 1,289 635 - - (1,568) 1,726 -
Taxation - - - - - (297) (297) -
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Profit/(loss)
for the
period 1,370 1,289 635 - - (1,865) 1,429 -
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Six months ended 31 March 2017 (Unaudited)
Restated**
Europe & Middle Asia Discontinued
Americas East Pacific Africa Eliminations Unallocated(1) Consolidated Initiate
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
---------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Total external
revenue 13,214 13,596 3,455 596 - - 30,861 1,979
Total
inter-segment
revenue 433 - 112 194 (744) - (5) 5
---------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Total revenue 13,647 13,596 3,567 790 (744) - 30,856 1,984
---------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Segmental
profit/(loss) 1,312 1,084 (124) (205) - - 2,067 (6)
Unallocated
corporate
expenses(1) - - - - - (877) (877) -
Share-based
payment cost - - - - - (117) (117) -
Exceptional
items (note 6) - - - - - (481) (481) (63)
Amortisation of
intangible
assets - - - - - - - (98)
---------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Operating
profit/(loss) 1,312 1,084 (124) (205) - (1,475) 592 (167)
Finance income - - - - - 1 1 -
Finance expense - - - - - (157) (157) -
---------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Profit/(loss)
before tax 1,312 1,084 (124) (205) - (1,631) 436 (167)
Taxation - - - - - (39) (39) 19
---------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Profit/(loss)
for the period 1,312 1,084 (124) (205) - (1,670) 397 (148)
---------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
**Restated to reflect discontinued operations and a change to operating segments
Year ended 30 September 2017 (Audited)
Restated**
Europe & Middle Asia Discontinued
Americas East Pacific Africa Eliminations Unallocated(1) Consolidated Initiate
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Total external
revenue 26,049 25,190 8,289 699 - - 60,227 3,229
Total
inter-segment
revenue 601 4 125 200 (961) - (31) 31
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Total revenue 26,650 25,194 8,414 899 (961) - 60,196 3,260
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Segmental
profit/(loss) 2,331 1,931 529 (299) - - 4,492 2
Unallocated
corporate
expenses(1) - - - - - (1,745) (1,745) -
Share-based
payment cost - - - - - (170) (170) -
Exceptional
items (note
6) - (132) - (317) - (634) (1,083) (475)
Amortisation
of intangible
assets - - - - - - - (621)
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Operating
profit/(loss) 2,331 1,799 529 (616) - (2,549) 1,494 (1,094)
Finance income - - - - - 1 1 -
Finance
expense - - - - - (262) (262) -
--------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
Profit/(loss)
before tax 2,331 1,799 529 (616) - (2,810) 1,233 (1,094) Taxation - - - - - 38 38 118 --------------- ---------- --------- --------- -------- -------------- ---------------- -------------- -------------- Profit/(loss) for the period 2,331 1,799 529 (616) - (2,772) 1,271 (976) --------------- ---------- --------- --------- -------- -------------- ---------------- -------------- --------------
(1) Unallocated costs represent Directors' remuneration, administrative staff, corporate head office costs and expenses associated with AIM.
**Restated to reflect a change in operating segments
5 EARNINGS PER SHARE
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Restated**
--------------------------------------------------------------------------- ----------- ------------ --------------
Profit for the financial period attributable to equity shareholders 1,429 248 291
Share-based payments cost and associated costs 379 117 170
Exceptional items (note 6) - 481 1,083
Loss from discontinued operations - 148 976
--------------------------------------------------------------------------- ----------- ------------ --------------
Adjusted profit from continuing operations for the financial period before
share-based payments
costs and exceptional items 1,808 994 2,520
--------------------------------------------------------------------------- ----------- ------------ --------------
Weighted average number of shares:
* Ordinary shares in issue 53,862,868 33,896,845 43,775,690
* Shares held by EBT (155,552) (576,844) (267,760)
=========================================================================== =========== ============ ==============
Basic weighted average number of shares 53,707,316 33,320,001 43,507,930
Effect of employee share options 2,104,818 2,204,656 1,972,870
Diluted weighted average number of shares 55,812,134 35,524,657 45,480,800
--------------------------------------------------------------------------- ----------- ------------ --------------
Basic earnings per share attributable to equity shareholders of the Parent
(pence) 2.7p 0.7p 0.7p
Diluted earnings per share attributable to equity shareholders of the
Parent (pence) 2.6p 0.7p 0.6p
Basic earnings per share attributable to equity shareholders of the Parent
(pence) from continuing
operations 2.7p 1.2p 2.9p
Diluted earnings per share attributable to equity shareholders of the
Parent (pence) from
continuing operations 2.6p 1.1p 2.8p
Adjusted basic earnings per share before share-based payment cost and
exceptional items from
continuing operations 3.4p 3.0p 5.8p
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.
Unaudited Unaudited Audited
6 months 6 months Year
ended ended ended
31 March 31 March 30 September
2018 2017 2017
GBP000 GBP000 GBP000
Restated**
--------------------------- ----------- ------------ --------------
Restructuring costs(1) - 481 634
Disposal of subsidiary(2) - - 449
--------------------------- ----------- ------------ --------------
- 481 1,083
--------------------------------------- ------------ --------------
(1) Restructuring costs include bank charges and legal and professional fees in relation to the requirement of the revised banking facility.
(2) Disposal of subsidiary includes the loss on the disposal of Driver Trett South Africa (pty) Ltd and the associated legal and professional fees for the disposal.
**Restated to reflect discontinued operations
7 POST BALANCE SHEET EVENT
Following the period end, the Group has entered into an agreement with Jetglobal Limited for the sale of the freehold property interest in the Group's central administration offices located in Haslingden, UK and the immediate leaseback of these premises.
The cash consideration at completion on 20 April 2018 was GBP1.65 million. The sale will give rise to a small profit on disposal for the Group, before transaction costs. The property is classed as a held for sale asset at the period end and no gain has been recognised in these financials statements with respect to the sale.
The new lease is for an initial term up to 2 January 2026 at a fixed annual rent of GBP210,000 with a current annual cash cost to Driver of approximately GBP105,000 after adjusting for rental income receivable from a sub-tenant. The proceeds of the sale have been used to repay some of the Group's borrowings.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR FIMLTMBBMBLP
(END) Dow Jones Newswires
June 05, 2018 02:00 ET (06:00 GMT)
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