New markets help Driver return to profit
CONSTRUCTION consultancy Driver Group returned to profit in 2011, thanks toi a restructuring and a series of contract gains in new markets.
The Rossendale-based company declared a pre-tax profit of £349,000 in the year to September 30, reversing an £809,000 pre-tax loss in 2010. Revenues also increased by 6% to £17.4m.
The company, which specialises in mediation of disputes between construction firms, also concentrated on paying off any remaining borrowings, and finished the year with net cash of £572,000, compared with debts of £459,000 at the start of the year. It also has access to £3m worth of funds, having secured new banking arrangements until 2015.
Non-executive chairman Alan McClue said: “Performance in the year has seen a return to profitability, growth in revenue, a return to a healthy, cash-positive position and, subject to shareholder approval, a return to the dividend list.”
The company is preparing to pay shareholders a final dividend of 0.5p.
McClue said that moves into new territories in Qatar and Africa had started to deliver positive results, as had a decision to extend its services to the UK Power & Process sector.
He added that although the trading environment remained “challenging”, Driver Group’s own efforts to cut its cost had given it a stable platform for future growth plans.
“We have some exciting opportunities but are mindful of the macroeconomic environment,” he added. “We are therefore structured to deal with any adverse scenarios this may create.”
