11th Mar 2019 09:17
LONDON (Alliance News) - Driver Group PLC on Monday said its trading in the first half of its financial year 2019 has been behind expectations due to project delays.
The stock was trading 29% lower on Monday at 48.16 pence a share.
The engineering consultancy company has continued to make good progress towards the fulfilment of objectives since its previous financial year ended in September 2018, it said.
However, Driver said trading is now behind expectations in the first half of its current financial year, owing to a slowing in the speed of client conversion, in particular in the Middle East and south-east Asian markets.
As a result, the company now anticipates full year underlying pretax profit to be GBP3.5 million, slightly below the prior year's result of GBP3.8 million.
Despite that, Driver highlighted its recently reinstated dividend policy remains unaffected, underpinned by current cash balances of GBP5.1 million. The company's plans for further strategic growth and development are also unaltered, it added.
Looking ahead, Driver is close to finalising a wider range of initiatives and structures designed to enhance its operational efficiency, lower its cost base and improve cash collection.
"It is frustrating to report a number of Expert Witness/Dispute projects that were expected to convert in the first half of financial 2019 have been temporarily delayed or deferred, particularly as our new business pipeline is at historically high levels," said Chief Executive Gordon Wilkinson.
"There are significant opportunities for Driver Group in the second half of the financial year, and I am confident we will make good progress in converting these leads," added Wilkinson.
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