Driver Group continues to sparkle
NORTH West construction dispute resolution business Driver Group maintained its run of good form today as it posted 40% hikes in half-year profits and turnover.
The company, based in Haslingden near Rossendale and listed on AIM, advises construction and engineering firms on contractual disputes. It has a strong presence in the Middle East, and last year opened an office in Oman to service that area.
Driver, which in January posted record full-year profits of £1.98m, said its half year figures had also reached new heights as revenue for the six months to 31 March 2009 grew 49% to £11.25m. Underlying profits, before a charge for share options, rose by 41% to £1.3m.
Chairman Michael Davis heralded a successful first half for the group which employs around 170 people: “Despite the difficult economic backdrop, the business continues to grow, benefiting from its broad geographic spread of activities.
“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.”
In line with its strong performance Driver raised its interim dividend by 5% to 1p per share.
Mr Davis said growth had been driven by the strong performance of the Middle East business, where demand continues to be “very strong”. The UK results were hit by the slump in commercial building activity.
Looking ahead he said the group was entering new sectors and offering new services such as providing expert witnesses for disputes.
He added: “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.
“While the current economic environment presents more challenges to the group, we remain confident that the business is well placed to continue to grow.”
