2nd Mar 2016 09:27
LONDON (Alliance News) - Driver Group PLC said Wednesday it had seen a mixed start to its financial year, with the strong performance in its Initiate business offset by weaker trading in its UK disputes and project services divisions, as it announced its chief executive will step down later today.
In a statement ahead of its annual general meeting on Wednesday, the provider of commercial and dispute resolution services to the construction and engineering industries said its Chief Executive Dave Webster will be resigning from his position at the close of the AGM, and will become a non-executive director.
Gordon Wilkinson currently head of Driver's UK construction management business, Initiate, will take over as chief executive.
Driver's Non-Executive Chairman Steve Norris said Driver is in line to meet its expectations for the full year. However, Norris added revenue will be materially weighted to the second half due to dispute commissions being delayed and suspended in the Middle East business.
Driver said it has secured appointments and a number of its commissions have commenced, meaning it anticipates recovering much if not all of the shortfall at a later date. However, the above-expectations performance from its Asia Pacific and Africa operations within its Asia Pacific, Middle East and Africa business in the first quarter was counteracted by the delays.
Driver added its UK disputes business had a slow first quarter, due to commissions containing a lower number of large team assignments, and its UK project services business was hit by its oil and gas related clients scaling back requirements. It said trading within the project services business looked to be growing since January, but added it did not expect to recover the shortfall.
Its Initiate business, however, was performing ahead of expectations, although Driver said there may be challenges ahead as it seeks to broaden its service offering.
Driver added there was short-term visibility for the company, and said it was implementing cost savings.
Shares in Driver Group were down 17% at 61.25 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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