26th Oct 2020 09:20
(Alliance News) - Shares rose in Lancashire-based Driver Group PLC on Monday despite expecting a fall in profit for its recently ended financial year, activity levels remain consistent with the interim period.
Shares in the professional services consultancy were 16% higher at 51.50 pence on Monday in London.
Overall trading in the year remained solid, with a stronger performance in the UK and Europe being offset by weaker trading in the Middle East and Asia Pacific regions.
As a result, the group expects to report underlying pretax profit for the year ended September 30 at GBP2.5 million, down 17% from GBP3.0 million the year before. As at the end of September, the cash balance was at GBP8.2 million.
Driver said it is continuing to implement its strategic review, which includes the restructuring of its Middle East and Asia Pacific operations to meet the changing business demands in those regions.
Such changes includes the appointment of former Qatar business head Stefan Panourgias to lead the group's Middle East operations.
In addition, Driver has opened a new office in New York, and signed a strategic partnership with an unnamed dispute resolution consultancy in Africa.
"I am pleased to be able to report that Driver Group has performed well during the year and has managed the uncertainty caused by the Covid-19 pandemic to ensure the business remained profitable and cash generative throughout the year in spite of a reduced level of activity. I am confident that the reduced cost base and renewed focus on our core business of higher margin expert witness and dispute resolution in both APAC and the Middle East will deliver improved operating performance," said Chief Executive Officer Mark Wheeler.
By Dayo Laniyan; [email protected]
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