TIDMDRV
RNS Number : 7469F
Driver Group plc
19 January 2010
?
DRV
19 January 2010
DRIVER GROUP PLC
("Driver" or "the Group")
Preliminary Results
for the Year to 30 September 2009
Driver provides specialist commercial & dispute resolution services
to the construction and engineering industries.
Key Points
* Creditable trading figures in very difficult economic environment
* Revenues increased by 13% to GBP20.5m (2008: GBP18.2m) - strong overseas growth; Middle East revenues up 85% to GBP5.75m (2008:
GBP3.10m) - difficult UK markets, particularly in northern region
* Underlying* profit before tax of GBP1.11m (2008: GBP2.08m) - Reported profit before tax of GBP1.05m (GBP1.98m) - Middle East segmental profits up by 80% to GBP0.97m (2008: GBP0.54m)
* Underlying* earnings per share of 3.4p (2008: 6.3p). - Reported earnings per share of 3.2p (2008: 5.8p)
* Strong operating cash flow performance
* Strong balance sheet with net borrowings of just GBP0.2m (2008: GBP0.2m)
* Final dividend of 1.00p per share proposed (2008: 2.00p) taking total to 2.00p
(2008: 2.95p)
* Significant operational changes implemented in Q4 - as part of three year growth
plan
* Further revenue investment of cGBP1m planned in current financial year to
support new growth plan and in particular the development of overseas business
* Current financial year viewed as year of strategic investment with benefits to
flow through in the following year and beyond
* underlying figures are stated before the share-based payment charge
Steve Driver, Executive Chairman of Driver, commenting on the results, said,
"Against a very challenging trading backdrop, especially in the second half of
the year, I am pleased to report that Driver Group generated a pre-tax profit of
GBP1.1m on sales of GBP20.5m. While conditions in our core UK market were
generally very difficult, we saw continuing strong growth in our overseas
business, especially the Middle East where sales rose by 85%.
Looking ahead, we see interesting growth opportunities over the next three
years, especially in developing our international presence. Over the current
financial year we have planned for an additional GBP1m of revenue investment, in
excess of our usual budget levels, in support of our expansion strategy. We
therefore view this financial year as one of strategic investment, with the
benefits to come through in the next financial year and beyond."
Enquiries:
+-------------------+-------------------------------+---------------------+
| Driver Group plc | Steve Driver, Executive | T: 020 7448 1000 |
| | Chairman | (today) |
| | Dave Webster, Chief Executive | T: 01706 223999 |
| | officer | |
+-------------------+-------------------------------+---------------------+
| | Colin White, Finance Director | |
+-------------------+-------------------------------+---------------------+
| | | |
+-------------------+-------------------------------+---------------------+
| Zeus Capital | Alex Clarkson | T: 0161 831 1512 |
| Limited | | |
+-------------------+-------------------------------+---------------------+
| (Nomad) | Nick Cowles | |
| | | |
+-------------------+-------------------------------+---------------------+
| | | |
+-------------------+-------------------------------+---------------------+
| W H Ireland | Rachel Newton | T: 0113 394 6600 |
| Limited | | |
+-------------------+-------------------------------+---------------------+
| (Broker) | | |
+-------------------+-------------------------------+---------------------+
| | | |
+-------------------+-------------------------------+---------------------+
| Biddicks | Katie Tzouliadis | T: 020 7448 1000 |
+-------------------+-------------------------------+---------------------+
CHAIRMAN'S STATEMENT
Introduction
Against a very challenging trading backdrop, especially in the second half of
the year, I am pleased to report that Driver Group generated a pre-tax profit of
GBP1.1m on sales of GBP20.5m. While conditions in our core UK market were
generally very difficult, especially in the north of England, we saw continuing
strong growth in our overseas business. In total, sales from our Middle East
business rose by 85% and accounted for approximately 28% (2008: 17%) of the
Group's revenue for the year. In more challenging markets, the Group benefited
from its breadth of service offering and an area of focus for us was the growth
of our expert witness services both in the UK and Middle East.
In August, we were pleased to announce significant changes to the Group's
operational structure as well as changes to the Board. These changes took effect
after the year end, on 1 October 2009, and are part of our plans to develop the
business for growth over the next three years.
Financial Results
Revenue over the twelve months to 30 September 2009 increased by 13% to GBP20.5m
(2008: GBP18.2m). Underlying* profit before taxation fell by GBP0.97m to
GBP1.11m from GBP2.08m in 2008. This is stated after the impact of a charge of
GBP0.3m for bad and doubtful debts (2008: GBP0.1m) and one-off costs relating to
cost base reductions amounting to GBP0.2m (2008: nil). After deducting the IFRS
2 charge for share-based payments which totalled GBP59,000 (2008: GBP97,000),
reported profit before tax was GBP1.05m (2008: GBP1.98m).
Underlying* earnings per share were 3.4 pence (2008: 6.3 pence). After deducting
the share based payments charge, reported earnings per share were 3.2 pence
(2008: 5.8 pence).
Cash generation remained healthy with net cash inflow from operating activities
of GBP1.09m (2008: GBP1.39m). The Group's net borrowing position at the end of
the year stood at GBP0.2m, largely unchanged from the prior year position (30
September 2008: net borrowings of GBP0.2m) and an improvement on the net
borrowing position on 31 March 2009 of GBP0.93m.
*underlying figures are stated before the share-based payment charge
Dividend
The Board is pleased to recommend the payment of a final dividend of 1.00p per
share (2008: 2.00p per share). This makes a total dividend for the year of 2.00p
(2008: 2.95p). The final dividend will be paid on 18 March to shareholders on
the register at the close of business on 26 February.
Trading Overview
The trading environment during the financial year has been very challenging
reflecting the wider economic conditions.
Trading by Driver Consult in the UK, which accounted for approximately 53% of
Group revenues, was mixed. Our London office and the Southern regions performed
in line with management expectations, supported by growth in expert services
work. By contrast, the performance of the northern region was significantly
below management projections due to the weakness of the regional construction
market, although we did see growth in the provision of services to financial
institutions involved with distressed or insolvent businesses.
The Group is continuing to expand strongly overseas, especially in the Middle
East, which was the main focus of our international push. Revenues from the
Middle East accounted for 28% of the Group's total and showed year on year
growth of 85%, from GBP3.1m to GBP5.8m, with segmental profits increasing by
80%. Although the construction industry in Dubai has been severely affected by
the global recession, the expansion of our activities in Oman and Abu Dhabi more
than offset the impact and we benefited, in particular, from increases in expert
witness services. While we experienced some delays in the commencement of
expected contracts in the second half, prospects for continuing growth in the
region remain very good. Government spend on infrastructure projects and public
works remains at very high levels.
Commercial Management Consultants ("CMC"), which we acquired in February 2008,
performed well, helped by its focus on providing project services to substantial
infrastructure projects in the South of England.
Board and Operational Changes
A number of changes to the structure of both the Group and the Board took effect
on 1 October 2009. At Board level, Mike Davis retired as Chairman while
continuing as a Non-Executive Director and retaining responsibility as Chairman
of the Audit and Remuneration Committees. Mike had been Chairman since he joined
the Board in October 2005 and helped to steer the business through its AIM
flotation. I would like to thank Mike personally for his leadership of the Board
over these four years. In taking up the position of Executive Chairman, I was
delighted to hand over the position of Chief Executive Officer to Dave Webster,
previously Chief Operating Officer. Dave has been instrumental in the Group's
successful development to date, having joined the business in 2000.
We also made important changes to the Group's operational structure and
reporting lines, creating five new business units. These new business units
comprise Middle East, International, Expert Services, Consultancy Services (UK)
and Project Services. Each unit is led by a highly experienced managing director
and all have been involved with the development of Driver over a number of
years. This restructuring is part of our plan to position the Group for growth
over the next three years. We will be making further investment in the senior
management team over the coming year in order to support the development of our
international operations.
Outlook
While conditions are tougher, we believe that there are interesting growth
opportunities available to us over the next three years. The organisational
restructuring which we have put in place is the first step in developing these
opportunities. Building on our growing presence in the Middle East, we see scope
to deliver our expert services, consultancy and project services offering in new
territories in the Middle East as well as in other geographic markets, including
Africa, the Far East and Asia. The client relationships we have with
international contracting and engineering companies will assist this process.
Over the course of the current financial year, we expect to invest cGBP1m in our
expansion strategy, including the recruitment of key personnel for new market
sectors. The Board therefore views the current financial year as a year of
strategic investment, with the attendant beneficial effect on revenues and
profitability coming through in the next financial year and beyond. With these
strategic initiatives in place we believe that the Group is positioned to
deliver a strong performance in the coming years.
Steve Driver
Executive Chairman
CHIEF EXECUTIVE'S REPORT
Introduction
The year has proven to be a testing period as the impact of the global economic
downturn was felt across the construction and engineering industries. The impact
for us was most evident in the UK and Dubai, where live construction and
engineering projects declined significantly. Against that, we continued to
experience strong growth in the Middle East overall, especially in Oman.
Revenues from the Middle East increased by 85% year on year and the growth in
our overseas business over the last two years now means that our foreign
earnings contribute a significant proportion of the Group's overall profits. Our
focus on developing our expert witness and litigation support services across
all our geographic operations has been successful and we expect this work to
continue to increase over the coming year.
Driver Consult
Driver Consult is the principle trading subsidiary of the Group and provides
dispute resolution and commercial management services to the construction and
engineering industry in the UK, Middle East and Internationally. The results for
the subsidiary are reported in two segments: Driver Consult UK, which includes
domestic and international operations which are serviced from the UK, and Driver
Consult Middle East.
During the year there was a significant decline in the UK and Dubai commercial
building sectors and our services to live projects in these sectors reduced
accordingly. In reacting to changing market conditions, a major aim has been to
refocus our capability and resources on the wider international market and to
expand our expert services offering. We have started to see the benefits of this
refocusing, which has helped to offset the decline in the broader UK market. Our
operations in the Middle East, excluding Dubai, grew strongly over the year,
particularly in Oman where we also started to widen our service offering.
UK
Our UK offices are grouped into the three regions, Northern, Midlands &
South-West, and London & South-East.
Revenue in the London & South-East region increased by 6% in the year. This
region is the primary home of our expert witness services and our revenue growth
reflected our efforts to increase our share of the expert witness marketplace.
We continue to project growth in London and, in order to accommodate this, moved
our London operations into larger premises.
The Northern and Midlands & South-West regions experienced a 22% decline in
revenue following the downturn of work in the construction and engineering
industries during the year. We have positioned our operations in these regions
to focus on the power, energy and utility sectors but are currently not
projecting significant recovery during the course of the current financial year
to 30 September 2010.
Our Corporate Services business is accounted for within the Northern region.
This division provides services to the banking, accountancy and insolvency
sectors and, as would be expected in the current environment, revenues from
Corporate Services increased over the year. The major part of our work was
undertaken for Administrators managing the administration of construction
companies. We anticipate continuing growth from Corporate Services during the
coming year and expect to add fee-earning resource to support this. The business
is also well positioned for due diligence and project monitoring work for banks
and other lenders when the construction market recovers.
International (reported within the UK segment)
During the year, this business area generated revenue of GBP1.8m at a 21%
margin. We view the wider international arena, outside our existing operations
in the Middle East, as offering excellent potential for expansion and have
started to position Driver Consult accordingly, leveraging our existing client
relationships.
We are investing in senior managers to develop such markets as Africa, the Far
East and Asia, and looking further into the future, South America. We also see
the larger international projects as a source for providing services wider than
our current offering and we are looking to secure work of a more strategic
consultancy nature; to this end we will invest in a senior manager with
experience and contacts in this area.
Middle East
Revenues from the Middle East increased by 85% and segmental profits rose by 80%
and the region now represents a material and growing revenue stream. The
services we provide in the region are wider than those we currently provide in
the UK. They cover contract document preparation, employer's representative
roles and contract administration as well as the claims, dispute and expert
witness services traditionally provided in the UK. The success of these wider
services has prompted plans to widen the service offering across the whole Group
in future years.
The media has reported widely on the turbulent market in Dubai and our
experience over the period reflected this, with all our appointments on live
project services terminated during late 2008 and early 2009. However, our live
project services work in Abu Dhabi was not affected and during the remainder of
the year the Dubai market saw an increase in demand for our dispute resolution
services. Our business in the United Arab Emirates as a whole therefore
experienced an increase in revenue of 17% in the year.
Our Oman business has continued to grow significantly in the year with revenue
increasing fourfold, from GBP0.8m to GBP3m, and segmental profits rising
five-fold from GBP0.2m to GBP1m. In fact, revenue and profit would have been
higher had a major dispute, on which we were providing expert services, not
settled earlier than expected, in June 2009. Our primary clients are the Omani
government, where we work for several governmental ministries, and major
contracting organisations. The performance of this office is particularly
pleasing given that it was only opened in the previous financial year.
Commercial Management Consultants ("CMC")
The integration of CMC has been successful and the business delivered its first
full year trading contribution since its acquisition in February 2008. During
the year, we merged CMC's Dartford office with the Group's London office
resulting in reduced overheads. This completed the office merger programme,
which commenced the previous year when CMC's Glasgow and Manchester offices were
merged with existing Group offices.
While CMC has been affected by the decline in the live project market in the UK,
its focus on larger infrastructure projects around London and the South-East has
largely insulated the business from much of the impact. Revenue and profits have
been maintained at full year underlying levels similar to the previous year.
We see opportunities to expand the business into the industrial and process
plant maintenance sectors and to widen the services CMC offers to include
project planning. We also have plans to develop CMC in Europe using our contacts
established in our Driver Consult International Operations and a new Managing
Director has been identified to deliver this strategy.
Outlook
We do not anticipate any overall growth in the UK market in the near term.
Although it is expected that our expert witness and litigation support services
will grow, this is unlikely to offset the continued decline in the services we
offer to the live construction and engineering sectors.
The Middle East region is set to continue to grow and we are looking at
opportunities to develop into other countries in the region adopting the
successful model in place in Oman. We will also seek to expand our staff levels
providing dispute resolution and expert witness services in the region.
Our longer term plans are to position the Group as a global construction
management consultant and over the course of this coming year, we will continue
to implement our initiatives to position ourselves for these longer term aims as
well as ensure that the Group is best able to face the challenges in the current
economic climate, particularly in the UK and Europe. In focusing on overseas
expansion, we expect to be active in Europe, the Middle East and Africa during
the coming year and are seeking a point of entry into the Far East and Asia . We
will also be investing in senior managers with a track record of providing the
wider consultancy services we seek to offer.
We have planned for an additional GBP1m of revenue investment in excess of our
usual budget levels for business development, and anticipate that our track
record to-date of successfully expanding the Group will hold us in good stead
for this future development. These plans are set out over a three year period
and we look forward to reporting on the successful progress towards this aim
during the coming year.
Dave Webster
Chief Executive Officer
DRIVER GROUP PLC
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2009
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
+------------------------------------------+--+----+--+----------+--+--+--+--------+--+--+--+--+
| |Notes | 2009 | 2008 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | GBP000 | GBP000 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| REVENUE | 3, 4 | 20,539 | 18,149 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Cost of sales | | (14,612) | (11,660) | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| GROSS PROFIT | | 5,927 | 6,489 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Administrative expenses | | (5,004) | (4,581) | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Other operating income | | 146 | 120 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| OPERATING PROFIT | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| - before share based payment | | 1,128 | 2,125 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| - Share-based payment | | (59) | (97) | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | 3, 4 | 1,069 | 2,028 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Finance income | | 13 | 14 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Finance expenses | | (30) | (62) | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| PROFIT BEFORE TAXATION | | 1,052 | 1,980 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Taxation | | (276) | (571) | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| PROFIT FOR THE YEAR | | 776 | 1,409 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| (Loss) / profit attributable to minority | | (5) | 11 | |
| interests | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Profit attributable to equity shareholders | | 781 | 1,398 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | 776 | 1,409 | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Basic earnings per share (pence) | 2 | 3.2p | 5.8p | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| Diluted earnings per share (pence) | 2 | 3.2p | 5.8p | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+---------------------------------------------+-------+----------+-----------------+-----+
| | | | | |
+------------------------------------------+----------+-------------------+--------+-----------+
| | | | | |
+------------------------------------------+-------+----------------+-----------------+-----+
| The profit for the year arises from the Group's continuing | |
| operations. | |
+----------------------------------------------------------------------+-----------+
| | |
+------------------------------------------+--+----+--+----------+--+--+--+--------+--+--+--+--+
DRIVER GROUP PLC
CONSOLIDATED BALANCE SHEET
30 SEPTEMBER 2009
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
+---------+------------------+---------+----------+----------+----------+----------+
| | | | 2009 | 2008 |
+---------+------------------+---------+---------------------+---------------------+
| | | | GBP000 | GBP000 | GBP000 | GBP000 |
+---------+------------------+---------+----------+----------+----------+----------+
| NON-CURRENT ASSETS | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Goodwill | | 2,356 | | 2,356 | |
+----------------------------+---------+----------+----------+----------+----------+
| Property, plant and | | 3,173 | | 3,059 | |
| equipment | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Deferred tax asset | | 52 | | 37 | |
+----------------------------+---------+----------+----------+----------+----------+
| | | | 5,581 | | 5,452 |
+----------------------------+---------+----------+----------+----------+----------+
| CURRENT ASSETS | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Trade and other | | 4,539 | | 4,823 | |
| receivables | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Cash and cash equivalents | | 687 | | 1,054 | |
+----------------------------+---------+----------+----------+----------+----------+
| | | | 5,226 | | 5,877 |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| TOTAL ASSETS | | | 10,807 | | 11,329 |
+----------------------------+---------+----------+----------+----------+----------+
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| CURRENT LIABILITIES | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Borrowings | | (13) | | (219) | |
+----------------------------+---------+----------+----------+----------+----------+
| Trade and other payables | | (2,391) | | (2,380) | |
+----------------------------+---------+----------+----------+----------+----------+
| Current tax payable | | (133) | | (361) | |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| | | | (2,537) | | (2,960) |
+----------------------------+---------+----------+----------+----------+----------+
| NON-CURRENT LIABILITIES | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Borrowings | | (838) | | (1,000) | |
+----------------------------+---------+----------+----------+----------+----------+
| Deferred tax liabilities | | (292) | | (309) | |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| | | | (1,130) | | (1,309) |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| TOTAL LIABILITIES | | | (3,667) | | (4,269) |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| NET ASSETS | | | 7,140 | | 7,060 |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| SHAREHOLDERS' EQUITY | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Share capital | | | 106 | | 106 |
+----------------------------+---------+----------+----------+----------+----------+
| Share premium | | | 2,649 | | 2,649 |
+----------------------------+---------+----------+----------+----------+----------+
| Merger reserve | | | 1,493 | | 1,493 |
+----------------------------+---------+----------+----------+----------+----------+
| Translation reserve | | | (24) | | - |
+----------------------------+---------+----------+----------+----------+----------+
| Capital redemption reserve | | | 18 | | 18 |
+----------------------------+---------+----------+----------+----------+----------+
| Share based payment | | | - | | 187 |
| reserve | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| Retained earnings | | | 4,134 | | 3,838 |
+----------------------------+---------+----------+----------+----------+----------+
| Own shares | | | (1,242) | | (1,242) |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| TOTAL SHAREHOLDERS' EQUITY | | 7,134 | | 7,049 |
+--------------------------------------+----------+----------+----------+----------+
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| MINORITY INTEREST IN EQUITY | | 6 | | 11 |
+--------------------------------------+----------+----------+----------+----------+
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| TOTAL EQUITY | | | 7,140 | | 7,060 |
| | | | | | |
+----------------------------+---------+----------+----------+----------+----------+
| | | | | | |
+---------+------------------+---------+----------+----------+----------+----------+
DRIVER GROUP PLC
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2009
+--------------------------------------------------------------------------------+
| |
+--------------------------------------------------------------------------------+
+-------------------------------------------------+------------------+--------------------+
| | Year ended | Year ended |
| | 30 September | 30 September 2008 |
| | 2009 | GBP000 |
| | GBP000 | |
+-------------------------------------------------+------------------+--------------------+
| CASH FLOWS FROM OPERATING ACTIVITIES | | |
+-------------------------------------------------+------------------+--------------------+
| Profit before taxation | | |
+-------------------------------------------------+------------------+--------------------+
| - before share-based payments | 1,111 | 2,077 |
+-------------------------------------------------+------------------+--------------------+
| - share-based payments | (59) | (97) |
+-------------------------------------------------+------------------+--------------------+
| | | |
+-------------------------------------------------+------------------+--------------------+
| | 1,052 | 1,980 |
+-------------------------------------------------+------------------+--------------------+
| Adjustments for: | | |
+-------------------------------------------------+------------------+--------------------+
| Depreciation | 216 | 170 |
+-------------------------------------------------+------------------+--------------------+
| Exchange adjustments | - | (65) |
+-------------------------------------------------+------------------+--------------------+
| Finance income | (13) | (14) |
+-------------------------------------------------+------------------+--------------------+
| Finance expense | 30 | 62 |
+-------------------------------------------------+------------------+--------------------+
| Equity settled share-based payment expense | 59 | 97 |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| OPERATING CASH FLOW BEFORE CHANGES IN WORKING | 1,344 | 2,230 |
| CAPITAL AND PROVISIONS | | |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| Decrease / (increase) in trade and other | 260 | (875) |
| receivables | | |
+-------------------------------------------------+------------------+--------------------+
| Increase in trade and other payables | 11 | 602 |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| CASH GENERATED FROM OPERATIONS | 1,615 | 1,957 |
+-------------------------------------------------+------------------+--------------------+
| Taxation paid | (527) | (563) |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| NET CASH INFLOW FROM OPERATING ACTIVITIES | 1,088 | 1,394 |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| CASH FLOWS FROM INVESTING ACTIVITIES | | |
+-------------------------------------------------+------------------+--------------------+
| Finance income received | 13 | 14 |
+-------------------------------------------------+------------------+--------------------+
| Acquisition of subsidiary net of cash acquired | - | (1,003) |
| | | |
+-------------------------------------------------+------------------+--------------------+
| Acquisition of property, plant and equipment | (330) | (111) |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| NET CASH OUTFLOW FROM INVESTING ACTIVITIES | (317) | (1,100) |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| CASH FLOWS FROM FINANCING ACTIVITIES | | |
+-------------------------------------------------+------------------+--------------------+
| Finance expense paid | (30) | (62) |
+-------------------------------------------------+------------------+--------------------+
| Borrowings | (368) | 590 |
+-------------------------------------------------+------------------+--------------------+
| Payment of equity dividends | (740) | (688) |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| NET CASH OUTFLOW FROM FINANCING ACTIVITIES | (1,138) | (160) |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| Net (decrease) / increase in cash and cash | (367) | 134 |
| equivalents | | |
+-------------------------------------------------+------------------+--------------------+
| Effect of foreign exchange on cash and cash | - | 65 |
| equivalents | | |
+-------------------------------------------------+------------------+--------------------+
| Cash and cash equivalents at start of period | 1,054 | 855 |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 687 | 1,054 |
+-------------------------------------------------+------------------+--------------------+
| | _________ | _________ |
+-------------------------------------------------+------------------+--------------------+
| | | |
+-------------------------------------------------+------------------+--------------------+
| | | |
+-------------------------------------------------+------------------+--------------------+
| | | |
+-------------------------------------------------+------------------+--------------------+
DRIVER GROUP PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2009
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | Share | Share | Merger | Other | Retained | Own | | Minority | Total |
| | capital | premium | reserve | reserves(1) | earnings | shares | Total | interest | Equity |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | GBP000 | GBP000 | GBP000 | GBP000 | GBP000 | | GBP000 | GBP000 | GBP000 |
| | | | | | | GBP000 | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| OPENING | 99 | 2,649 | - | 112 | 3,086 | (1,242) | 4,704 | 16 | 4,720 |
| BALANCE AT 01 | | | | | | | | | |
| OCTOBER 2007 | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
| Deferred tax credit | | | | | | | | | |
| on property | - | - | - | - | 26 | - | 26 | - | 26 |
| revaluation | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| NET INCOME | | | | | | | | | |
| RECOGNISED DIRECTLY | | | | | | | | | |
| IN EQUITY | | | | | | | | | |
| | - | - | - | - | 26 | - | 26 | - | 26 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Profit for the year | - | - | - | - | 1,398 | - | 1,398 | 11 | 1,409 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| TOTAL RECOGNISED | | | | | | | | | |
| INCOME AND EXPENSE | | | | | | | | | |
| | | | | | | | | | |
| | - | - | - | - | 1,424 | - | 1,424 | 11 | 1,435 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Issue of new shares | 7 | - | 1,493 | - | - | - | 1,500 | - | 1,500 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Dividends | - | - | - | - | (672) | - | (672) | (16) | (688) |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Share based payment | - | - | - | 93 | - | - | 93 | - | 93 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | 106 | 2,649 | 1,493 | 205 | 3,838 | (1,242) | 7,049 | 11 | 7,060 |
| CLOSING BALANCE AT | | | | | | | | | |
| 30 SEPTEMBER 2008 | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
| Deferred tax credit | | | | | | | | | |
| on property | - | - | - | - | 9 | - | 9 | - | 9 |
| revaluation | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Exchange adjustment | - | - | - | (24) | - | - | (24) | - | (24) |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| NET INCOME | | | | | | | | | |
| RECOGNISED DIRECTLY | | | | | | | | | |
| IN EQUITY | | | | | | | | | |
| | - | - | - | (24) | 9 | - | (15) | - | (15) |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Profit for the year | - | - | - | - | 781 | - | 781 | (5) | 776 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
| TOTAL RECOGNISED | | | | | | | | | |
| INCOME AND EXPENSE | - | - | - | (24) | 790 | - | 766 | (5) | 761 |
| | | | | | | | | | |
| | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Dividends | - | - | - | - | (740) | - | (740) | - | (740) |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Share based payment | - | - | - | - | 59 | - | 59 | - | 59 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| Transfer of | - | - | - | (187) | 187 | - | - | - | - |
| reserves(2) | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
| BALANCE AT 30 | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| SEPTEMBER 2009 | 106 | 2,649 | 1,493 | (6) | 4,134 | (1,242) | 7,134 | 6 | 7,140 |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
| | | | | | | | | | |
+----------------------+----------+-------------+-----------+-------------+-----------+----------+--------+-----------+----------+
(1)'Other reserves' combines the translation reserve, capital redemption reserve
and share based payment reserve.
(2)The opening balance on the share based payment reserve has been credited to
retained earnings.
NOTES
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 1 | The financial information set out in these Preliminary Results does not constitute the Company's statutory accounts for the year ended 30 September 2009 or the year ended 30 September 2008 but is derived from those accounts. |
| | |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | Statutory accounts for the year ended 30 September 2008 have been delivered to the Registrar of Companies, and those for the year ended 30 September 2009 will be delivered following the Company's Annual General Meeting. BDO LLP have reported on the 2009 and 2008 accounts. Their reports were unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006 or section 237(2) or (3) of the Companies Act 1985. |
| | |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 2 | Earnings per share |
| | |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | Adjusted earnings per share before the charge for share-based payments is 3.4p (2008: 6.3p) |
| | |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The calculation of earnings per share before share-based payments is based on earnings of GBP840,000 (2008: GBP1,520,000). Earnings after deducting these charges are GBP781,000 (2008: GBP1,398,000). The basic and diluted weighted average number of shares in issue for the period were 24,678,771 and 24,678,771 respectively (2008: 23,992,712 and 23,995,988 respectively). |
| | |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 3 | Segmental analysis |
| | |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The table below sets out revenue and profit by business segment: |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | 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 geographical structure and principal services provided. |
+----------------------------------------+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
+---------------------+-----------+-----------+-----------+--------------+-------------+--------+-----+
| Year ended 30 September 2009 | Continuing Operations |
+---------------------------------+-------------------------------------------------------------------+
| | Driver | Driver | CMC | Eliminations | Unallocated | Consolidated |
| | Consult | Consult | GBP000 | GBP000 | GBP000 | GBP000 |
| | UK | Middle | | | | |
| | GBP000 | East | | | | |
| | | GBP000 | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Total external | 10,588 | 5,596 | 4,355 | - | - | 20,539 |
| revenue | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Total inter-segment | 229 | 155 | 5 | (389) | - | - |
| revenue | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Total revenue | 10,817 | 5,751 | 4,360 | (389) | - | 20,539 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Segmental profit | 1,453 | 974 | 423 | - | - | 2,850 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Unallocated | - | - | - | - | (1,722) | (1,722) |
| corporate expenses | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Share option | - | - | - | - | (59) | (59) |
| expense | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Operating profit | 1,453 | 974 | 423 | - | (1,781) | 1,069 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Finance income | - | - | - | - | 13 | 13 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Finance expense | - | - | - | - | (30) | (30) |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Profit before | 1,453 | 974 | 423 | - | (1,798) | 1,052 |
| taxation | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Taxation | - | - | - | - | (276) | (276) |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Profit for the year | 1,453 | 974 | 423 | - | (2,074) | 776 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Inter-segment sales are charged at prevailing | | | | |
| market rates. | | | | |
+---------------------------------------------------------+--------------+-------------+--------+-----+
| (1) Unallocated costs represent Directors' remuneration, administration staff, |
| corporate head office costs and expenses associated with AIM. |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------+-----+
Revenue from one of the customers of the Driver Consult Middle East segment
exceeds 10% of the Group's total revenue with revenue of GBP2.1m.
+------------------------------+-----------------------------------------------------+
| Year ended 30 September 2008 | Continuing Operations |
+------------------------------+-----------------------------------------------------+
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | Driver | Driver | CMC | Eliminations | Unallocated | Consolidated |
| | Consult | Consult | GBP000 | GBP000 | GBP000 | GBP000 |
| | UK | Middle | | | | |
| | GBP000 | East | | | | |
| | | GBP000 | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Total external | 12,628 | 3,096 | 2,425 | - | - | 18,149 |
| revenue | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Total inter-segment | 305 | 12 | 99 | (416) | - | - |
| revenue | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Total revenue | 12,933 | 3,108 | 2,524 | (416) | - | 18,149 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Segmental profit | 2,984 | 537 | 354 | - | - | 3,875 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Unallocated | - | - | - | - | (1,750) | (1,750) |
| corporate expenses | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Share option | - | - | - | - | (97) | (97) |
| expense | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Operating profit | 2,984 | 537 | 354 | - | (1,847) | 2,028 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Finance income | - | - | - | - | 14 | 14 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Finance expense | - | - | - | - | (62) | (62) |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Profit before | 2,984 | 537 | 354 | - | (1,895) | 1,980 |
| taxation | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Taxation | - | - | - | - | (571) | (571) |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | _________ | _________ | _________ | _________ | _________ | _________ |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| Profit for the year | 2,984 | 537 | 354 | - | (2,466) | 1,409 |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
| | | | | | | |
+---------------------+-----------+-----------+-----------+--------------+-------------+--------------+
Revenue from one of the customers of the Driver Consult UK segment exceeds 10%
of the Group's total revenue in 2008 with revenue of GBP2.1m.
4 GEOGRAPHICAL INFORMATION
The Group's operations are located in the UK and the Middle East.
The following table provides an analysis of the Group's revenue by
geography based upon location of the
Group's operations:
+---------------------+--------+--------------------+--------------+
| | | Year ended | Year ended |
| | | 30 September | 30 September |
| | | 2009 | 2008 |
| | | GBP000 | GBP000 |
+---------------------+--------+--------------------+--------------+
| UK | | 14,943 | 15,053 |
| Middle East | | 5,596 | 3,096 |
| | | _________ | _________ |
+---------------------+--------+--------------------+--------------+
| | | 20,539 | 18,149 |
+---------------------+--------+--------------------+--------------+
| | | | |
+---------------------+--------+--------------------+--------------+
+----------------------------------------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| 5 | Copies of the annual report and financial statements |
+----------------------------------------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+----------------------------------------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The Annual Report and Financial Statements will be sent to shareholders in due course. Further copies will be available to the public, free of charge at the Company's registered office, Driver House, 4 St Crispin Way, Rossendale, Lancashire, BB4 4PW and on the Company's website, www.drivergroupplc.com. |
+----------------------------------------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | |
+----------------------------------------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | The Annual General Meeting will be held at IoD Hub, 1st Floor, Peter House, Oxford Street, Manchester, M1 5AN on Wednesday 24 February 2010 commencing at 3.00pm. |
+----------------------------------------+-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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