TIDMDRV
RNS Number : 2405T
Driver Group plc
03 June 2009
DRV
3 June 2009
DRIVER GROUP PLC
("Driver" or "the Group")
Interim Results
for the six months ended 31 March 2009
Driver provides specialist commercial & dispute resolution services
to the construction and engineering industries.
Highlights
* Record half year revenue and profit
* Revenues increased by 49% to GBP11.25m (2008: GBP7.53m), reflecting - benefit of contribution from CMC, acquired in February 2008 - strong growth in international business, especially in Middle East
* Underlying* pre-tax profit increased by 41% to GBP1.30m (2008: GBP0.92m) Statutory pre-tax profit increased by 33% to GBP1.22m (2008: GBP0.92m)
* Underlying* earnings per share increased by 52% to 4.1p (2008: 2.7p) Statutory earnings per share increased by 40% to 3.8p (2008: 2.7p)
* Interim dividend increased by 5% to 1.0p per share (2008: 0.95p)
* Positive cash generated from operations
* Continued investment in the Middle East
* Outlook for continuing growth remains positive
* underlying figures are stated before the charge for share options of GBP81,000
(2008: nil)
Michael Davis, Chairman of Driver, commenting on the results, said,
"I am pleased to report on a successful first half for Driver Group. Despite the
difficult economic backdrop, the business continues to grow, benefiting from its
broad geographic spread of activities and ability to service many different
sub-sectors of the construction and engineering industries. This is a direct
result of the growth strategy we have applied over the last few years. The half
year results also benefited from a full six months' contribution from CMC, which
was acquired in February 2008.
As we look ahead, our focus remains on developing our expert witness and
litigation support services, particularly in London, the United Arab Emirates
and Oman, where there continue to be substantial opportunities. Our growth plans
are underpinned by our ability to operate throughout all sub-sectors within the
construction and engineering industries, from civil engineering, power, oil &
gas and process. We therefore remain confident that the Group is well placed to
achieve further growth."
Enquiries:
+-------------------+-------------------------------+---------------------+
| Driver Group plc | Steve Driver, Chief Executive | T: 020 7448 1000 |
| | Dave Webster, Chief Operating | (today) |
| | Officer | T: 01706 223999 |
+-------------------+-------------------------------+---------------------+
| | Colin White, Finance Director | |
+-------------------+-------------------------------+---------------------+
| | | |
+-------------------+-------------------------------+---------------------+
| Zeus Capital | Alex Clarkson | T: 0161 831 1512 |
| Limited | | |
+-------------------+-------------------------------+---------------------+
| (Nomad) | Nick Cowles | |
| | | |
+-------------------+-------------------------------+---------------------+
| | | |
+-------------------+-------------------------------+---------------------+
| W H Ireland | Gary Marshall | T: 0113 394 6600 |
| Limited | | |
+-------------------+-------------------------------+---------------------+
| (Broker) | | |
+-------------------+-------------------------------+---------------------+
| | | |
+-------------------+-------------------------------+---------------------+
| Biddicks | Katie Tzouliadis | T: 020 7448 1000 |
+-------------------+-------------------------------+---------------------+
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report on a successful first half for Driver Group. Despite the
difficult economic backdrop, the business continues to grow, benefiting from its
broad geographic spread of activities and ability to service many different
sub-sectors of the construction and engineering industries. This is a direct
result of the growth strategy we have applied over the last few years. The half
year results also benefited from a full six months' contribution from CMC, which
was acquired in February 2008.
Of particular note in the period has been our substantial growth in the Middle
East, which was supported by the opening of our office in Oman, in the summer
last year. As expected, the reduction in the commercial construction market has
impacted certain parts of the business, however, our London office, where we
undertake the majority of our litigious support services and expert appointments
has experienced further growth in demand.
Financial Review
Revenue for the six months to 31 March 2009 grew strongly, increasing by 49% to
GBP11.25m over the corresponding period last year (2008: GBP7.53m), with the
year-on-year increase boosted by the contribution from CMC. Underlying pre-tax
profits, before the charge for share options, rose by 41% to GBP1.30m (2008:
GBP0.92m).
After a charge for share options of GBP81,000 (2008: nil), pre-tax profits
showed an increase of 33% at GBP1.22m (2008: GBP0.92m). The share option charge
reflects the cost of new share options which have been issued over the last
eighteen months. The profit was after having taken a charge of GBP0.2m in
connection with bad and doubtful debts. The relative position of Sterling
against the Group's major trading currencies (Euros, United Arab Emirate Dirhams
and Omani Riyals) is now more of a factor on results given the increasing
proportion of overseas revenues.
The reduction in the Group's effective tax rate to 25% (2008: 30%) reflects the
benefit of a lower local tax rate in Oman. Underlying earnings per share, before
the charge for share options, rose by 52% to 4.1p (2008: 2.7p) and, after the
charge, the increase in reported earnings was 40% at 3.8p (2008: 2.7p).
Debtors increased by GBP1.00m (2008: GBP0.82m) over the period. This reflected
the increase in revenues and, in particular, the growth in revenues
internationally, especially from the Middle East where credit terms are
significantly longer than in the UK. Cash generated from operations in the
period was just GBP125,000 lower than the prior period, at GBP225,000 (2008:
GBP350,000). Net borrowings at the 31 March 2009 were GBP0.93m (31 March 2008:
GBP1.04m).
Dividend
The Board is pleased to declare an interim dividend of 1.0p per share (2008:
0.95p), representing a 5% increase over last year and reflecting the Group's
good performance. The dividend will be paid on 7 August 2009 to shareholders on
the register at the close of business on 19 June 2009.
Trading performance
Driver's continued growth in revenue and profit in these more testing economic
times reflects the benefits of the Group's strategy of developing its presence
outside the UK, into the Middle East and internationally, and broadening the
range of its consultancy services.
Growth in the period has been driven by our expansion in the Middle East, which
continues to be very strong. In the UK, as anticipated, results were impacted by
the reduction in commercial building activity and the time required developing
the business in other sectors, including energy and power. However, the London
office generated a 66% increase in revenue and 65% improvement in profit,
compared with the prior period. This is a result of a high proportion of the
London office's income arising from dispute and litigation services as well as a
reflection of the large number of infrastructure projects in the region. We are
pleased with the progress of our international business outside the Middle East,
in Europe, the Far East, and the Americas. This business is serviced from the UK
and our growth in profits has been mainly the result of the expansion of our
expert witness services. Results overall from Driver Consult UK, compared with
the comparative period, showed some decline in revenue and profits to GBP6.0m
and GBP1.2m respectively, against GBP6.4m and GBP1.4m in the prior year period.
Our overseas performance has been excellent. Results from the Middle East during
the period reflect our hard work over recent years to develop our presence in
the region. Revenue increased to GBP3.1m (2008: GBP0.9m) and profits increased
to GBP0.7m (2008: GBP0.1m). The profit margin showed a substantial improvement,
rising from 15% to 24%. This largely reflected our planned shift away from
project services into dispute and litigious services and our ability to scale up
efficiently from the existing cost base. We continue to invest in the Middle
East, particularly in Oman, which represents a relatively new market for us.
Over the period, we recruited additional fee-earners and, at the end of the half
year, the average number of fee- earners in the Middle East stood at 37 (from 33
at 30 September 2008). A far greater proportion of them are involved in
consultancy and dispute resolution work than was the case in 2008.
We reported last year that staff utilisation had increased and was back at its
optimum level following the previous recruitment drive. I am pleased to report
that these levels were maintained over the first half.
Whilst the UK and Dubai commercial building sectors have declined, and our
services to live projects in these sectors have reduced accordingly, the large
infrastructure and energy projects for the UK, Abu Dhabi and Oman, which are
either in the planning phase or in progress, continue to offer opportunities for
our project consultancy services. It is also pleasing to report that the
anticipated cross-referrals between Driver Consult and CMC, which started last
year, continue to build and we are seeing referrals spread from the UK market
into the Middle East.
We continue to anticipate strong demand for both our specialist commercial
services and our dispute resolution services over the next few years,
particularly in London, the Middle East and the wider international market, and
have a structure in place to accommodate this growth.
Outlook
As we look ahead, our focus remains on developing our expert witness and
litigation support services, particularly in London, the United Arab Emirates
and Oman, where there continue to be substantial opportunities. We also see
opportunities to leverage our existing relationships to develop our presence in
other geographic regions. We are initiating actions to position ourselves for
the likely increase in work in the power and energy markets although we do not
anticipate that this will benefit results in the current financial year.
Our growth plans are underpinned by our ability to operate throughout all
sub-sectors within the construction and engineering industries, from civil
engineering, power, oil & gas and process. With the addition of CMC, we can now
offer services throughout the full cycle of a construction or engineering
project, from feasibility to closure. While the current economic environment
presents more challenges to the Group, we remain confident that the business is
well placed to continue to grow.
+-------------------+
| Michael Davis |
+-------------------+
| Chairman |
+-------------------+
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the six months ended 31 March 2009
+----------------+---------+---------+----------+--------+
| | 6 | 6 | Year |
| | months | months | ended |
| | ended | ended | 30 |
| | 31 | 31 | Sept |
| | March | March | 2008 |
| | 2009 | 2008 | GBP'000 |
| | GBP'000 | GBP'000 | |
| | | | |
+----------------+---------+---------+----------+
| REVENUE | 11,253 | 7,533 | 18,149 |
+----------------+---------+---------+----------+
| Cost | (7,292) | (4,544) | (11,660) |
| of | | | |
| Sales | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| GROSS | 3,961 | 2,989 | 6,489 |
| PROFIT | | | |
+----------------+---------+---------+----------+
| Administrative | (2,807) | (2,120) | (4,581) |
| expenses | | | |
+----------------+---------+---------+----------+
| Other | 77 | 64 | 120 |
| operating | | | |
| income | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| OPERATING | | | |
| PROFIT | | | |
+----------------+---------+---------+----------+
| Before | 1,312 | 933 | 2,125 | |
| share-based | | | | |
| payment | | | | |
+----------------+---------+---------+----------+--------+
| Share-based | (81) | - | (97) | |
| payment | | | | |
+----------------+---------+---------+----------+--------+
| | 1,231 | 933 | 2,028 |
+----------------+---------+---------+----------+
| Finance | 9 | 4 | 14 |
| income | | | |
+----------------+---------+---------+----------+
| Finance | (19) | (19) | (62) |
| costs | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| PROFIT | 1,221 | 918 | 1,980 |
| BEFORE | | | |
| TAXATION | | | |
+----------------+---------+---------+----------+
| Taxation | (300) | (275) | (571) |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| PROFIT | 921 | 643 | 1,409 |
| FOR | | | |
| THE | | | |
| PERIOD | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| (Loss) | (11) | 4 | 11 |
| / | | | |
| Profit | | | |
| attributable | | | |
| to minority | | | |
| interests | | | |
+----------------+---------+---------+----------+
| Profit | 932 | 639 | 1,398 |
| attributable | | | |
| to equity | | | |
| shareholders | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| | 921 | 643 | 1,409 |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| Basic | 3.8p | 2.7p | 5.8p |
| earnings | | | |
| per | | | |
| share | | | |
| (pence) | | | |
| (note 5) | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| Diluted | 3.8p | 2.7p | 5.8p |
| earnings | | | |
| per | | | |
| share | | | |
| (pence) | | | |
| (note 5) | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+
| | | | |
+----------------+---------+---------+----------+--------+
The profit for the period arises from the Group's continuing operations.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
31 March 2009
+------------------------------------------+-----------+-----------+-------------+
| | 31 March | 31 March | 30 Sept |
| | 2009 | 2008 | 2008 |
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+-----------+-----------+-------------+
| NON-CURRENT ASSETS | | | |
+------------------------------------------+-----------+-----------+-------------+
| Goodwill | 2,356 | 2,356 | 2,356 |
+------------------------------------------+-----------+-----------+-------------+
| Property, plant and equipment | 3,194 | 3,083 | 3,059 |
+------------------------------------------+-----------+-----------+-------------+
| Deferred tax asset | 61 | 26 | 37 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| | 5,611 | 5,465 | 5,452 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| CURRENT ASSETS | | | |
+------------------------------------------+-----------+-----------+-------------+
| Trade and other receivables | 5,886 | 4,768 | 4,823 |
+------------------------------------------+-----------+-----------+-------------+
| Cash and cash equivalents | 422 | 720 | 1,054 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| | 6,308 | 5,488 | 5,877 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| TOTAL ASSETS | 11,919 | 10,953 | 11,329 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| CURRENT LIABILITIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| Borrowings | (292) | (244) | (219) |
+------------------------------------------+-----------+-----------+-------------+
| Trade and other payables | (2,192) | (1,955) | (2,380) |
+------------------------------------------+-----------+-----------+-------------+
| Current tax payable | (447) | (495) | (361) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| | (2,931) | (2,694) | (2,960) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| NON-CURRENT LIABILITIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| Borrowings | (1,057) | (1,513) | (1,000) |
+------------------------------------------+-----------+-----------+-------------+
| Deferred tax liabilities | (297) | (335) | (309) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| | (1,354) | (1,848) | (1,309) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| TOTAL LIABILITIES | (4,285) | (4,542) | (4,269) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| NET ASSETS | 7,634 | 6,411 | 7,060 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| SHAREHOLDERS' EQUITY | | | |
+------------------------------------------+-----------+-----------+-------------+
| Share capital | 106 | 106 | 106 |
+------------------------------------------+-----------+-----------+-------------+
| Share premium | 2,649 | 2,649 | 2,649 |
+------------------------------------------+-----------+-----------+-------------+
| Merger reserve | 1,493 | 1,493 | 1,493 |
+------------------------------------------+-----------+-----------+-------------+
| Currency translation reserve | 66 | 6 | - |
+------------------------------------------+-----------+-----------+-------------+
| Capital redemption reserve | 18 | 18 | 18 |
+------------------------------------------+-----------+-----------+-------------+
| Other reserves | 268 | 90 | 187 |
+------------------------------------------+-----------+-----------+-------------+
| Retained earnings | 4,276 | 3,287 | 3,838 |
+------------------------------------------+-----------+-----------+-------------+
| Own shares | (1,242) | (1,242) | (1,242) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| TOTAL SHAREHOLDERS' EQUITY | 7,634 | 6,407 | 7,049 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| MINORITY INTEREST IN EQUITY | - | 4 | 11 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| TOTAL EQUITY | 7,634 | 6,411 | 7,060 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
For the six months ended 31 March 2009
+------------------------------------------+-----------+-----------+-------------+
| | 6 months | 6 months | Year |
| | ended | ended | Ended |
| | 31 March | 31 March | 30 Sept |
| | 2009 | 2008 | 2008 |
| | GBP'000 | GBP'000 | GBP'000 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| CASH FLOWS FROM OPERATING ACTIVIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| Profit before taxation | 1,221 | 918 | 1,980 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| Adjustments for: | | | |
+------------------------------------------+-----------+-----------+-------------+
| Depreciation | 98 | 82 | 170 |
+------------------------------------------+-----------+-----------+-------------+
| Exchange adjustments | - | - | (65) |
+------------------------------------------+-----------+-----------+-------------+
| Finance income | (9) | (4) | (14) |
+------------------------------------------+-----------+-----------+-------------+
| Finance costs | 19 | 19 | 62 |
+------------------------------------------+-----------+-----------+-------------+
| Share-based payment | 81 | - | 97 |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| OPERATING CASH FLOW BEFORE CHANGES IN | 1,410 | 1,015 | 2,230 |
| WORKING CAPITAL AND PROVISIONS | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| Increase in trade and other receivables | (997) | (821) | (875) |
+------------------------------------------+-----------+-----------+-------------+
| (Decrease) / Increase in trade and other | (188) | 156 | 602 |
| payables | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| CASH GENERATED FROM OPERATIONS | 225 | 350 | 1,957 |
+------------------------------------------+-----------+-----------+-------------+
| Tax paid | (250) | (96) | (563) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| NET CASH (OUTFLOW) / INFLOW | (25) | 254 | 1,394 |
| FROM OPERATING ACTIVITIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| CASH FLOWS FROM INVESTING ACTIVITIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| Interest received | 9 | 4 | 14 |
+------------------------------------------+-----------+-----------+-------------+
| Acquisition of subsidiary net of cash | - | (1,003) | (1,003) |
| acquired | | | |
+------------------------------------------+-----------+-----------+-------------+
| Acquisition of property, plant and | (233) | (46) | (111) |
| equipment | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| NET CASH OUTFLOW FROM INVESTING | (224) | (1,045) | (1,100) |
| ACTIVITIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| Interest paid | (19) | (19) | (62) |
+------------------------------------------+-----------+-----------+-------------+
| Borrowings | 130 | 1,129 | 590 |
+------------------------------------------+-----------+-----------+-------------+
| Payment of equity dividends | (494) | (454) | (688) |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| NET CASH (OUTFLOW) / INFLOW | (383) | 656 | (160) |
| FROM FINANCING ACTIVITIES | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| Net (decrease) / increase in cash and | (632) | (135) | 134 |
| cash equivalents | | | |
+------------------------------------------+-----------+-----------+-------------+
| Effect of foreign exchange on cash and | - | - | 65 |
| cash equivalents | | | |
+------------------------------------------+-----------+-----------+-------------+
| Cash and cash equivalents at start of | 1,054 | 855 | 855 |
| period | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
| CASH AND CASH EQUIVALENTS AT END OF | 422 | 720 | 1,054 |
| PERIOD | | | |
+------------------------------------------+-----------+-----------+-------------+
| | | | |
+------------------------------------------+-----------+-----------+-------------+
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the six months ended 31 March 2009
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| | Share | Share | Merger | Other | Retained | Own | Total | Minority | Total |
| | Capital | Premium | Reserve | reserves(1) | earnings | shares | GBP'000 | interest | Equity |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | GBP'000 |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Opening | 106 | 2,649 | 1,493 | 205 | 3,838 | (1,242) | 7,049 | 11 | 7,060 |
| balance | | | | | | | | | |
| At 1 | | | | | | | | | |
| October | | | | | | | | | |
| 2008 | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Exchange | - | - | - | 66 | - | - | 66 | - | 66 |
| adjustments | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| NET | - | - | - | 66 | - | - | 66 | - | 66 |
| INCOME | | | | | | | | | |
| RECOGNISED | | | | | | | | | |
| DIRECTLY | | | | | | | | | |
| IN EQUITY | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Profit | - | - | - | - | 932 | - | 932 | (11) | 921 |
| for | | | | | | | | | |
| the | | | | | | | | | |
| period | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| TOTAL | - | - | - | 66 | 932 | - | 998 | (11) | 987 |
| RECOGNISED | | | | | | | | | |
| INCOME AND | | | | | | | | | |
| EXPENSE | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Dividends | - | - | - | - | (494) | - | (494) | - | (494) |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Share-based | - | - | - | 81 | - | - | 81 | - | 81 |
| payment | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| CLOSING | 106 | 2,649 | 1,493 | 352 | 4,276 | (1,242) | 7,634 | - | 7,634 |
| BALANCE | | | | | | | | | |
| AT 31 | | | | | | | | | |
| MARCH | | | | | | | | | |
| 2009 | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| | | | | | | |
+-------------------------------------------+--------------+-----------+---------+---------+----------+---------+
| For the six months ended 31 March | | | | | | |
| 2008 | | | | | | |
+-------------------------------------------+--------------+-----------+---------+---------+----------+---------+
| | Share | Share | Merger | Other | Retained | Own | Total | Minority | Total |
| | Capital | Premium | Reserve | reserves(1) | earnings | shares | GBP'000 | interest | Equity |
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 | | GBP'000 | GBP'000 |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Opening | 99 | 2,649 | - | 112 | 3,086 | (1,242) | 4,704 | 16 | 4,720 |
| balance | | | | | | | | | |
| At 1 | | | | | | | | | |
| October | | | | | | | | | |
| 2007 | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Exchange | - | - | - | 5 | - | - | 5 | - | 5 |
| adjustments | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| NET | - | - | - | 5 | - | - | 5 | - | 5 |
| INCOME | | | | | | | | | |
| RECOGNISED | | | | | | | | | |
| DIRECTLY | | | | | | | | | |
| IN EQUITY | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Profit | - | - | - | - | 639 | - | 639 | 4 | 643 |
| for | | | | | | | | | |
| the | | | | | | | | | |
| period | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| TOTAL | - | - | - | 5 | 639 | - | 644 | 4 | 648 |
| RECOGNISED | | | | | | | | | |
| INCOME AND | | | | | | | | | |
| EXPENSE | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Issue | 7 | - | 1,493 | - | - | - | 1,500 | - | 1,500 |
| of new | | | | | | | | | |
| shares | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Dividends | - | - | - | - | (438) | - | (438) | (16) | (454) |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| Share-based | - | - | - | (3) | - | - | (3) | - | (3) |
| payment | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
| CLOSING | 106 | 2,649 | 1,493 | 114 | 3,287 | (1,242) | 6,407 | 4 | 6,411 |
| BALANCE | | | | | | | | | |
| AT 31 | | | | | | | | | |
| MARCH | | | | | | | | | |
| 2008 | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+--------------+-----------+---------+---------+----------+---------+
For the year ended 30 September 2008
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| | Share | Share | Merger | Other | Retained | Own | Total | Minority | Total |
| | Capital | Premium | Reserve | reserves | earnings | shares | GBP'000 | interest | Equity |
| | GBP'000 | GBP'000 | GBP'000 | (1) | GBP'000 | GBP'000 | | GBP'000 | GBP'000 |
| | | | | GBP'000 | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| Opening | 99 | 2,649 | - | 112 | 3,086 | (1,242) | 4,704 | 16 | 4,720 |
| balance | | | | | | | | | |
| At 1 | | | | | | | | | |
| October | | | | | | | | | |
| 2007 | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| Deferred | - | - | - | - | 26 | - | 26 | - | 26 |
| tax | | | | | | | | | |
| credit | | | | | | | | | |
| on | | | | | | | | | |
| property | | | | | | | | | |
| revaluation | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| NET | - | - | - | - | 26 | - | 26 | - | 26 |
| INCOME | | | | | | | | | |
| RECOGNISED | | | | | | | | | |
| DIRECTLY | | | | | | | | | |
| IN EQUITY | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| Profit | - | - | - | - | 1,398 | - | 1,398 | 11 | 1,409 |
| for | | | | | | | | | |
| the | | | | | | | | | |
| period | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| TOTAL | - | - | - | - | 1,424 | - | 1,424 | 11 | 1,435 |
| RECOGNISED | | | | | | | | | |
| INCOME AND | | | | | | | | | |
| EXPENSE | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| Issue | 7 | - | 1,493 | - | - | - | 1,500 | - | 1,500 |
| of new | | | | | | | | | |
| shares | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| Dividends | - | - | - | - | (672) | - | (672) | (16) | (688) |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| Share-based | - | - | - | 93 | - | - | 93 | - | 93 |
| payment | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
| CLOSING | 106 | 2,649 | 1,493 | 205 | 3,838 | (1,242) | 7,049 | 11 | 7,060 |
| BALANCE | | | | | | | | | |
| AT 30 | | | | | | | | | |
| SEPT 2008 | | | | | | | | | |
| | | | | | | | | | |
+-------------+---------+---------+---------+-----------+-----------+---------+---------+----------+---------+
(1) 'Other reserves' combine the translation reserve, capital redemption reserve
and other reserves.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1 BASIS OF PREPARATION
The financial information presented in this documentation has been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards ("IFRS") and International Financial Reporting
Interpretations Committee ("IFRIC") interpretations that are expected to be
applicable for the year ending 30 September 2009. These are subject to ongoing
review and endorsement by the European Commission, and possible amendment by the
International Accounting Standards Board ("IASB"), and are therefore subject to
possible change.
The financial information in this statement relating to the six months ended 31
March 2009 and the six months ended 31 March 2008 has not been audited, but has
been reviewed, pursuant to guidance issued by the Auditing Practices Board. The
comparative figures for the year ended 30 September 2008 do not amount to full
statutory accounts within the meaning of section 435 of the Companies Act 2006.
Those accounts have been reported on by the Group's auditors and delivered to
the Registrar of Companies. The audit report was unqualified, did not include
references to matters to which the auditors drew attention by way of emphasis
without qualifying their report and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
2 TAXATION
The tax charge on the profit for the half-year ended 31 March 2009 is
based on an estimated tax rate for
the year ending 30 September 2009.
3DIVIDEND
It is proposed that an interim dividend for the half-year ended 31 March 2009 of
1.00p per share amounting to GBP246,788 be paid on 7 August 2009 to all the
shareholders on the register as at 19 June 2009 other than the Driver Group
Employee Benefit Trust.
4. SUMMARY SEGMENTAL ANALYSIS
Reportable segments
For management purposes, the Group is organised into three operating divisions -
Driver Consult UK, Driver Consult Middle East and Commercial Management
Consultants (CMC). These divisions are the basis on which the Group is
structured and managed, based on its geographic structure and principal services
offered.
Summary segment information about these reportable segments is presented below.
Six months ended 31 March 2009
+---------------+----------+----------+----------+---------+--------------+-------------+----------+----------+
| | Continuing Operations |
+--------------------------+-----------------------------------------------------------------------+
| | Driver Consult UK | Driver | CMC | Eliminations | Unallocated | Consolidated |
| | GBP'000 | Consult | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | | Middle | | | | |
| | | East | | | | |
| | | GBP'000 | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Total | 5,903 | 3,044 | 2,306 | - | - | 11,253 |
| external | | | | | | |
| revenue | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Inter-segment | 124 | 56 | - | (180) | - | - |
| revenue | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| | ________ | ________ | _______ | ________ | ________ | ________ |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Total | 6,027 | 3,100 | 2,306 | (180) | - | 11,253 |
| revenue | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Segmental | 1,160 | 741 | 209 | - | - | 2,110 |
| profit | | | | | | |
| | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Unallocated | | | | | (798) | (798) |
| corporate | | | | | | |
| expenses | | | | | | |
| | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Share-based | | | | | (81) | (81) |
| payment | | | | | | |
| | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| | ________ | ________ | _______ | _________ | _________ | _________ |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Operating | 1,160 | 741 | 209 | - | (879) | 1,231 |
| profit | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Investment | | | | | 9 | 9 |
| income | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Finance | | | | | (19) | (19) |
| costs | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| | ________ | ________ | _______ | _________ | _________ | _________ |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| Profit | 1,160 | 741 | 209 | - | (889) | 1,221 |
| before | | | | | | |
| tax | | | | | | |
+---------------+---------------------+----------+---------+--------------+-------------+---------------------+
| | | | | | | |
+---------------+----------+----------+----------+---------+--------------+-------------+----------+----------+
Six months ended 31 March 2008
+---------------+----------+----------+---------+--------------+-------------+----------------+----------------+
| | Continuing Operations |
+--------------------------+------------------------------------------------------------------+
| | Driver | Driver | CMC | Eliminations | Unallocated | Consolidated |
| | Consult | Consult | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | UK | Middle | | | | |
| | GBP'000 | East | | | | |
| | | GBP'000 | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Total | 6,319 | 902 | 312 | - | - | 7,533 |
| external | | | | | | |
| revenue | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Inter-segment | 32 | - | - | (32) | - | - |
| revenue | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| | ______ | ________ | _______ | _________ | _________ | _________ |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Total | 6,351 | 902 | 312 | (32) | - | 7,533 |
| revenue | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Segmental | 1,494 | 131 | 32 | - | - | 1,657 |
| profit | | | | | | |
| | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Unallocated | _______ | _______ | _______ | _________ | (724) | (724) |
| corporate | | | | | _________ | _________ |
| expenses | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Operating | 1,494 | 131 | 32 | - | (724) | 933 |
| profit | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Investment | | | | | 4 | 4 |
| income | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Finance | | | | | (19) | (19) |
| costs | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| | _______ | _______ | _______ | _________ | _________ | _________ |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| Profit | 1,494 | 131 | 32 | - | (739) | 918 |
| before | | | | | | |
| tax | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+---------------------------------+
| | | | | | | |
+---------------+----------+----------+---------+--------------+-------------+----------------+----------------+
For the year ended 30 September 2008
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| | Continuing Operations |
+--------------------------+-----------------------------------------------------------------+
| | Driver | Driver | CMC | Eliminations | Unallocated | Consolidated |
| | Consult | Consult | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
| | UK | Middle | | | | |
| | GBP'000 | East | | | | |
| | | GBP'000 | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Total | 12,628 | 3,096 | 2,425 | - | - | 18,149 |
| external | | | | | | |
| revenue | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Inter-segment | 305 | 12 | 99 | (416) | - | - |
| revenue | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| | _______ | _________ | _____ | _________ | _________ | _________ |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Total | 12,933 | 3,108 | 2,524 | (416) | - | 18,149 |
| revenue | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Segmental | 2,984 | 537 | 354 | - | - | 3,875 |
| profit | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Unallocated | | | | | (1,750) | (1,750) |
| corporate | | | | | | |
| expenses | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Share-based | | | | | (97) | (97) |
| payment | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| | ________ | _________ | ____ | _________ | _________ | _________ |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Operating | 2,984 | 537 | 354 | - | (1,847) | 2,028 |
| profit | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Investment | | | | | 14 | 14 |
| income | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Finance | | | | | (62) | (62) |
| costs | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| | | _________ | _____ | _________ | _________ | _________ |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
| Profit | 2,984 | 537 | 354 | - | (1,895) | 1,980 |
| before | | | | | | |
| tax | | | | | | |
+---------------+----------+-----------+---------+--------------+-------------+--------------+
Inter-segment sales are charged at prevailing market rates.
5EARNINGS PER SHARE (UNAUDITED)
+-------------+-------------+-------------+-------------+
| | 6 | 6 | Year |
| | months | months | Ended |
| | Ended | Ended | 30 |
| | 31 | 31 | Sept |
| | March | March | 2008 |
| | 2009 | 2008 | GBP'000 |
| | GBP'000 | GBP'000 | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Profit | 932 | 639 | 1,398 |
| for | | | |
| the | | | |
| financial | | | |
| period | | | |
+-------------+-------------+-------------+-------------+
| Share-based | 81 | - | 122 |
| payments | | | |
| after tax | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Profit | 1,013 | 639 | 1,520 |
| for | | | |
| the | | | |
| financial | | | |
| period | | | |
| before | | | |
| share-based | | | |
| payments | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Weighted | | | |
| average | | | |
| number | | | |
| of | | | |
| shares: | | | |
+-------------+-------------+-------------+-------------+
| Ordinary | 26,379,416 | 25,011,796 | 25,693,357 |
| shares | | | |
| in issue | | | |
+-------------+-------------+-------------+-------------+
| Shares | (1,700,645) | (1,700,645) | (1,700,645) |
| held | | | |
| by EBT | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Basic | 24,678,771 | 23,311,151 | 23,992,712 |
| weighted | | | |
| average | | | |
| number | | | |
| of | | | |
| shares | | | |
+-------------+-------------+-------------+-------------+
| Issuable | - | 124,720 | - |
| on | | | |
| conversion | | | |
| of options | | | |
+-------------+-------------+-------------+-------------+
| Issuable | - | 99,457 | 3,276 |
| on | | | |
| conversion | | | |
| of | | | |
| warrants | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Diluted | 24,678,771 | 23,535,328 | 23,995,988 |
| weighted | | | |
| average | | | |
| number | | | |
| of | | | |
| shares | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Basic | 4.1p | 2.7p | 6.3p |
| earnings | | | |
| per | | | |
| share | | | |
| before | | | |
| exceptional | | | |
| items | | | |
| and | | | |
| share-based | | | |
| payments | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Basic | 3.8p | 2.7p | 5.8p |
| earnings | | | |
| per | | | |
| share | | | |
| (pence) | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
| Diluted | 3.8p | 2.7p | 5.8p |
| earnings | | | |
| per | | | |
| share | | | |
| (pence) | | | |
+-------------+-------------+-------------+-------------+
| | | | |
+-------------+-------------+-------------+-------------+
Independent Review Report to Driver Group plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the interim report for the six months ended 31 March 2009 which
comprises the Consolidated Income Statement, the Consolidated Statement of
Changes in Equity, the Consolidated Balance Sheet, the Consolidated Cash Flow
Statement, and the related explanatory notes. We have read the other information
contained in the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed
set of financial statements.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the rules of the
London Stock Exchange for companies trading securities on the Alternative
Investment Market which require that the half-yearly report be presented and
prepared in a form consistent with that which will be adopted in the company's
annual accounts having regard to the accounting standards applicable to such
annual accounts.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the interim report based on our review.
Our report has been prepared in accordance with the terms of our engagement to
assist the company in meeting the requirements of the rules of the London Stock
Exchange for companies trading securities on the Alternative Investment Market,
and for no other purpose. No person is entitled to rely on this report unless
such a person is a person entitled to rely upon this report by virtue of and for
the purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility for
this report to any other person or for any other purpose and we hereby expressly
disclaim any and all such liability.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity," issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the interim report for the six
months ended 31 March 2009 is not prepared, in all material respects, in
accordance with the rules of the London Stock Exchange for companies trading
securities on the Alternative Investment Market.
BDO Stoy Hayward LLP
Chartered Accountants and Registered Auditors
Manchester
2 June 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
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