Driver Group disposes of South African subsidiary

International construction and engineering consultancy Driver Group has sold its South African subsidiary.

The Rossendale company, which specialises in dispute resolution, has sold Driver Trett South Africa (DTSA) to its local management team.

The group said it regarded DTSA as non-core with “little immediate prospect of improved performance under its current ownership structure”, adding that it had recently been loss-making.

In 2016, DTSA had revenue of £3.59m and a loss before tax of £550,000 with net liabilities of £180,000 as of March 31, 2017.

In consideration for the disposal, Driver will receive the net proceeds of sale of the 300,000 Driver ordinary shares currently owned by DTSA management.

Driver has agreed to write-off an inter-company balance due from DTSA totalling £630,000.

Cash proceeds received from the sale will be utilised for working capital purposes, it added.