Investment overseas costs Driver Group £2.1m loss
LANCASHIRE-based construction consultancy Driver Group has made a pre-tax loss of £2.1m as a result of its operations in Africa, Asia and the Middle East.
The Haslingden-headquartered company revealed an 8% increase in revenue to £21.1m (2014: 19. 6m) in its half yearly report ending on March 31, with revenue growth in the Americas, Europe and the UK in line with management expectations.
But the implementation of business support functions in Africa, Asia and the Middle East, including a review of the existing sernior management team, business development philosophy and the reduction in overhead to 91% of the previous year, cost the company, which said the benefits of these moves would be seen later in the year.
The £2.1m loss compares to a profit of £1.3m in 2014. The proposed dividend per share will be maintained at 0.6p.
Meanwhile, the company increased its headcount by 30% to 461 while average fee rates increased by 22% largely from Africa, Oman, UAE and the UK.
Chairman Steve Norris, said: “The first half of financial year 2014/2015 has been a period of investment and change for the Group, as we recognised the need to transition from the delivery of one growth strategy to the implementation of our new plan to take the business forward.
“In the annual report and accounts the Company reported that this year was one of investment in structure and creation of critical mass particularly in Africa, Asia and the Middle East. The investment has been made and the board anticipates that, as a result, we will generate a stronger, larger and more profitable region.”
