Driver sees profits dented by investment
DRIVER Group, the international construction consultancy headquartered in Lancashire, has reported a dip in half year profits, which it said was the result of a continuing investment programme.
The Haslingden-based group, which is listed on the AIM market, said it had seen a somewhat mixed picture in terms of activity across its global business in the six months to the end of March.
While the Far East, Europe and Middle East performed well and helped Driver increase revenues by 7% to £19.9m, there was a fall in activity levels in the US and Africa.
Despite the fall in profits Driver raised its dividend and said it was satisfied with progress. During the periiod it opened its office and began operating in Hong Kong, developed its Australia-based activities; invested in training in Europe and continued to look at opportunities in America.
The group said though it had “realigned” the cost base in America following a slow start to the year. In Africa, where there was also slower start to the year than had been expected, business was impaced as a result of work being suspended on three major hospitals.
Chairman Alan McClue said: “I am pleased with the group’s performance for the first half of financial year 2013/2014 which was in line with management expectations.
“The period can be characterised as continued excellent performance in the Middle East and Asia Pacific starting to deliver a return on investment. The continuing development of the Asia Pacific Region, together with the secured revenues and pipeline of opportunities provide me with confidence in our performance for 2013/2014 and the medium term outlook for the group.”
The company said that in the light of the results and and the secured revenues for the second half, its interim dividend would be raised from 0.5p per share to 0.6p per share.
