Driver Group PLC has released a trading update for the six-month period ending 31 March 2024. The company expects to report revenue of £22.5 million, down from £24.2 million in the same period last year, and an underlying Group profit before tax of approximately £0.6 million, compared to £0.7 million in the corresponding period last year. The company is set to report its interim results for the period on 12 June 2024.
The trading performance of the group has seen a return to profitability during FY23, with strong performance in the UK and European regions. The APAC and the Middle East regions have also returned to profitability. However, North America faced challenges in H1 due to exceptional staff issues.
Driver Group's focus remains on delivering the transformation strategy announced in December 2023, emphasizing worldwide client services, cost control, margin improvement, and increased utilization. The company is making progress in migrating to a single premium brand 'Diales' and developing a global pipeline of talent and opportunity.
The company maintains a strong cash position, with a net cash balance of £4.4 million as of 31 March 2024. This represents a decrease from the position on 30 September 2023, primarily due to dividend and tax payments, as well as the planned cessation of a long-standing Joint Venture agreement in Canada and the Middle East.
Mark Wheeler, Chief Executive Officer of Driver Group, expressed satisfaction with the performance, stating, "I am pleased to see our strategy delivering improved performance in both APAC and the Middle East which have both returned to profit. Management have acted promptly in resolving the challenges in North America, and our UK and European regions continue to perform well. I believe the Group is therefore well placed to move forward positively into H2 FY24."
The underlying profit before tax is stated before share-based payment cost, discontinued operations, and non-recurring costs. The information contained in the announcement is considered inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.
For further information, investors can contact Driver Group plc at 020 7377 0005 or Singer Capital Markets at 020 7496 3000.