Driver Group (DRV)

 

Driver ahead of previous forecasts

Driver Group expects underlying pre-tax profits for the year to the end of September to be ahead of previous forecasts.

The board said the group had continued to benefit from careful management of overheads and improved utilisation rates during the second half of the financial year.

A trading update said: 'The performance of the business in the UK has been particularly strong, as it has been this year in the UAE and in Qatar.

'The Singapore office has enjoyed a sizeable increase in activity levels, whilst action has been taken to improve the future prospects of both Hong Kong and Australia.

'These factors, together with the strategic initiatives underway, including the disposal of the South African subsidiary already accomplished and announced, are expected to see a strong close to the year as a whole and the Group better placed for the future.

'Control of working capital continues to be a key area of focus, as does monetising the Group's legacy debtor book and good progress has continued in the collection of aged debt in the Middle East, where, in Oman for instance, debt which stood at £4.6m at the end of March currently stands at £3.1m.

'Net debt for the group at the financial year end is expected to be in the region of £1m.'