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On 14 June 2022, Driver Group plc announced its Interim Report for the six months ended 31 March 2022, reporting revenue of £24.4 million, profit before tax of £0.1 million, and net cash of £3.7 million. The Board recommended an interim dividend of 0.75p per share for 2022. Post-period, 25 employees from the Middle East operations transferred to another entity on 1 June 2022, and Driver Group plc received an upfront payment of £2 million from a counterparty towards the collection of a £3.5 million regional debtor book.
| Date | 14 Jun 2022 |
| Time | 07:00:02 |
| Category | Results |
| ID | 6923O |
14 June 2022
DRIVER GROUP PLC
("Driver" or "the Group")
Interim Report
For the six months ended 31 March 2022
Key Points (for the six months ended 31 March 2022)
|
|
6 months £000 |
6 months |
Change |
|
Revenue |
24,429 |
24,957 |
(528) |
|
Gross Profit |
5,882 |
6,397 |
(515) |
|
Gross Profit % |
24% |
26% |
(2%) |
|
Profit before tax |
130 |
855 |
(725) |
|
Add: Share-based payment charge |
272 |
158 |
114 |
|
Underlying* profit before tax |
402 |
1,013 |
(611) |
|
Underlying* profit before tax % |
2% |
4% |
(2%) |
|
Underlying* earnings per share |
0.2p |
1.4p |
(1.2p) |
|
Net cash** |
3,678 |
7,222 |
(3,544) |
· Underlying* profit before tax at £0.4m (2021: £1.0m) resulting in an underlying* profit before tax margin of 2% (2021: 4%).
· Profit before tax at £0.1m (2021: £0.9m).
· Net cash** decrease year on year of £3.5m to £3.7m (2021: £7.2m).
· Revenue down by 2% to £24.4m (2021: £25.0m) which is attributable to Middle East and Asia Pacific regions.
· Gross profit at 24%, a £0.5m decrease to £5.9m (2021: £6.4m).
· Fee earner headcount decreased by 7 to 294 with an increase in EuAm offset by decreases in both APAC and Middle East.
· Overall utilisation rates*** of 69.6% (2021: 72.1%).
· Europe & Americas (EuAm) reported underlying* profit before tax for the period of £2.4m (2021: £2.5m) with utilisation rates*** at 72.7% (2021: 71.6%).
· Middle East (ME) reported underlying* loss before tax for the period of £0.3m (2021: loss £0.4m) with utilisation rates*** at 60.9% (2021: 75.0%).
· Asia Pacific (APAC) reported underlying* loss before tax for the period of £0.5m (2021: loss £0.3m) with utilisation rates*** at 71.3% (2021: 67.6%).
* Underlying figures are stated before the share-based payment costs (this is not a GAAP measure).
** Net cash consists of cash and cash equivalents and bank loans
*** Utilisation % is calculated by dividing the total hours billed by the total working hours available for chargeable staff
Steve Norris, Chairman of Driver Group, said:
"I am pleased to report that the Company's performance remains resilient with only a small decline in revenue and, in line with the Company's Trading Update of 19 March 2022, an underlying* profit before tax of £0.4m. In these circumstances, we believe that this has been a credible performance and has laid strong foundations to support future growth."
Results presentation
The leadership team will be hosting a live webcast for analysts and investors at 09.30 GMT on 14 June 2022. Analysts have already been invited to participate in a live Q&A during the presentation, but any eligible person not having received details should contact the Company's PR advisers, Acuitas Communications, at [email protected] or on +44 (0)20 3848 2810.
Enquiries:
|
Driver Group plc Mark Wheeler (CEO)
|
020 7377 0005 |
|
Singer Capital Markets (Nomad & Broker) Sandy Fraser, Will Goode
|
020 7496 3000
|
|
Acuitas Communications Simon Nayyar Edward Lee |
020 3848 2810 / 07736 220 565 |
INTRODUCTION
Driver Group's recent focus has been on delivering the changes needed to address the underperforming areas of the business. The Company is pleased to report that significant progress has been made post-period end, as evidenced by the recently announced rationalisation of operations in the Middle East.
However, in common with many of its industry peers and professional services firms more widely, the Company has inevitably been exposed to the effects of the recent global economic uncertainty, including the more challenging trading environment arising from the legacy effects of COVID-19, and the impact that the war in Ukraine has had on some of our clients and their own counterparties, in relation to both work in hand and deferral of some existing pipeline.
Against that backdrop, I am pleased to report that the Company's performance remains resilient with only a small decline in revenue and, in line with the Company's Trading Update of 19 March 2022, an underlying* profit before tax of £0.4m. In these circumstances, we believe that this has been a credible performance and has laid strong foundations to support future growth.
Europe and the Americas remain our best performing region and will remain the focus for sustainable growth in the rest of the financial year and beyond. The Driver Project Services team, based in the UK, in particular had a very successful and profitable period; and the collaboration between our Madrid and New York offices continues to generate new business opportunities in the Americas.
The Board's operational review of performance in the Middle East and APAC, undertaken with independent external support, identified significant realisable cost savings and opportunities for better utilisation and, as I have indicated, we have taken early steps to take advantage of these performance gains.
The Middle East operations are now better positioned for future trading, with a lower and more manageable cost base, and significantly reduced trading risk. The new flexible operating model for the region focuses on key jurisdictions of greatest future earnings potential and provides for greater remote servicing of key mandates where appropriate. Your Board and management will be carefully monitoring performance in the region to ensure the delivery of the best possible outcomes for the Company, its employees, clients, in-region stakeholders, and our shareholders.
Driver Group has implemented the outputs of the strategic review in the APAC region in a thoughtful and timely manner, with a sharp focus on reducing costs and returning to long term sustainable profitability and margin protection. The Group remains well positioned to expand its work with South Korean clients.
Our longstanding CFO David Kilgour resigned at the end of March, with our best wishes for the future. Following this, the Company is delighted to have appointed an outstanding successor, Charlotte Parsons.
Charlotte knows the industry extremely well, having worked for many industry peers, and therefore brings with her vital experience that will aid the fine-tuning and delivery of the Company's strategic plan. She is working closely with the Board and management of Driver Group on a consultancy basis until formally taking up post full-time in July of this year.
Additionally, Tom Comerford has been appointed Chief Operating Officer of the Group and will continue to be a member of Driver's senior management team. Tom has been with Driver Group for over 20 years and has served in senior roles including Managing Director of the successful UK business. Tom's experience will be invaluable in realising the Group's ambitions in the coming years.
TRADING PERFORMANCE
Group revenue for the six months to 31 March 2022 was £24.4m, a 2.1% decrease compared to the same period in 2021 (£25.0m). Overall, the Group reported an underlying profit before tax of £0.4m (2021: £1.0m).
Revenues in the EuAm region increased slightly to £17.4m (2021: £17.2m) with revenues in the Middle East falling slightly to £5.4m (2021: £5.7m) and revenues in APAC down to £1.7m (2021: £2.1m).
The EuAm region delivered operating profits of £2.4m (2021: £2.5m) whilst the Middle East region recorded an operating loss of £0.3m (2021: £0.4m), and the APAC region recorded an operating loss of £0.5m (2021: £0.3m).
Underlying* earnings per share were 0.2p (2021: 1.4p), whilst the basic loss per share was 0.3p (2021: profit 1.1p).
The Group's net cash** balance at 31 March 2022 was £3.7m (2021: £7.2m) a decrease largely attributable to the delays in the timing of customer receipts. Post-period end, an agreement with a counterparty in the Middle East saw the Company's net cash balance increase to in excess of £5.0m. This comfortably exceeds the Group's near-term operational requirements.
DIVIDEND
The final dividend announced at the time of the results for the year to 30 September 2021 (0.75p per share) in January was paid in April 2022. Reflecting our confidence in the medium-term prospects for the Group and with the strong balance sheet position the Board recommends the payment of an interim dividend of 0.75p per share for 2022 (2021: 0.75p per share).
OUTLOOK
Driver Group's business in Europe and the Americas continues to trade very profitably with lower cost bases, offsetting losses in the Middle East and APAC. We expect to see a greater share of EuAm profits drop through to the bottom line.
Due to the nature of our business, we only have short term visibility in terms of forecasting. However, the Group has a strong pipeline of convertible opportunities in Europe and the Americas, with the Madrid office working closely with our colleagues in New York to strengthen our competitive positioning and new business leads from the fast-growing Latin American market. Similarly, the Group has a growing pipeline of opportunities arising in Africa.
The recent changes to the Middle East operations are expected to provide a turning point for the region and our future competitive positioning. This revised approach will see the Group take on a smaller number of larger projects. In the future projects will often utilise employee resource based in Europe, leveraging the highly effective working practices learned by the business during lockdown. The changes to the operating model will be fully implemented by the end of the financial year, leaving the Group well positioned into 2023.
Steven Norris
Non-Executive Chairman
14 June 2022
* Underlying figures are stated before the share-based payment costs (this is not a GAAP measure).
** Net cash consists of cash and cash equivalents and bank loans
Consolidated Income Statement
Interim report for the six months ended 31 March 2022
|
|
6 months ended 31 March 2022 £000 Unaudited |
6 months ended 31 March 2021 £000 Unaudited |
Year ended 30 September 2021 £000 Audited |
|
REVENUE |
24,429 |
24,957 |
48,772 |
|
Cost of sales |
(18,413) |
(18,500) |
(36,350) |
|
Impairment movement |
(134) |
(60) |
(187) |
|
GROSS PROFIT |
5,882 |
6,397 |
12,235 |
|
Administrative expenses |
(5,767) |
(5,576) |
(10,459) |
|
Other operating income |
75 |
67 |
194 |
|
Underlying* operating profit |
462 |
1,046 |
2,119 |
|
Share-based payment charge and associated costs |
(272) |
(158) |
(149) |
|
OPERATING PROFIT |
190 |
888 |
1,970 |
|
Finance income |
- |
- |
14 |
|
Finance costs |
(60) |
(33) |
(110) |
|
(LOSS)/PROFIT BEFORE TAXATION |
130 |
855 |
1,860 |
|
Tax expense (note 2) |
(309) |
(291) |
(746) |
|
PROFIT FOR THE PERIOD |
(179) |
564 |
1,114 |
|
Loss attributable to non-controlling interests |
- |
- |
- |
|
(Loss)/profit attributable to equity shareholders of the parent |
(179) |
564 |
1,114 |
|
|
(179) |
564 |
1,114 |
|
Basic (loss)/earnings per share attributable to equity shareholders of the parent (pence) |
(0.3)p |
1.1p |
2.1p |
|
Diluted (loss)/earnings per share attributable to equity shareholders of the parent (pence) |
(0.3)p |
1.0p |
2.1p |
* Underlying figures are stated before the share-based payment costs (this is not a GAAP measure)
Consolidated Statement of Comprehensive Income
Interim report for the six months ended 31 March 2022
|
|
6 months ended 31 March 2022 £000 Unaudited |
6 months ended 31 March 2021 £000 Unaudited |
Year ended 30 September 2021 £000 Audited |
|
(LOSS)/PROFIT FOR THE PERIOD |
(179) |
564 |
1,114 |
|
Other comprehensive (loss)/income: |
|
|
|
|
Items that could subsequently be reclassified to the Income Statement: |
|
|
|
|
Exchange differences on translating foreign operations |
(187) |
37 |
38 |
|
Other comprehensive (loss)/income for the year net of tax |
(187) |
37 |
38 |
|
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD |
(366) |
601 |
1,152 |
|
Total comprehensive (loss)/income attributable to: |
|
|
|
|
Owners of the parent |
(366) |
601 |
1,152 |
|
Non-controlling interest |
- |
- |
- |
|
|
(366) |
601 |
1,152 |
Consolidated Statement of Financial Position
Interim report for the six months ended 31 March 2022
|
|
31 March 2022 £000 Unaudited |
31 March 2021 £000 Unaudited |
30 September 2021 £000 Audited |
|
NON-CURRENT ASSETS |
|
|
|
|
Goodwill |
2,969 |
2,969 |
2,969 |
|
Property, plant and equipment |
567 |
433 |
405 |
|
Right of use asset |
2,130 |
2,124 |
1,854 |
|
Intangible asset |
759 |
319 |
516 |
|
Deferred tax asset |
186 |
303 |
272 |
|
|
6,611 |
6,148 |
6,016 |
|
CURRENT ASSETS |
|
|
|
|
Trade and other receivables |
20,640 |
17,606 |
18,865 |
|
Derivative financial asset |
- |
317 |
57 |
|
Current tax receivable |
360 |
- |
- |
|
Cash and cash equivalents |
3,678 |
7,472 |
6,474 |
|
|
24,678 |
25,395 |
25,396 |
|
TOTAL ASSETS |
31,289 |
31,543 |
31,412 |
|
CURRENT LIABILITIES |
|
|
|
|
Borrowings |
- |
(250) |
- |
|
Trade and other payables |
(8,409) |
(8,139) |
(8,009) |
|
Derivative financial liability |
(384) |
(1) |
(169) |
|
Lease creditor |
(938) |
(826) |
(778) |
|
Current tax payable |
(188) |
(346) |
(165) |
|
|
(9,919) |
(9,562) |
(9,121) |
|
NON-CURRENT LIABILITIES |
|
|
|
|
Lease creditor |
(1,066) |
(1,224) |
(1,023) |
|
Deferred tax liability |
(149) |
- |
- |
|
|
(1,215) |
(1,224) |
(1,023) |
|
TOTAL LIABILITIES |
(11,134) |
(10,786) |
(10,144) |
|
NET ASSETS |
20,155 |
20,757 |
21,268 |
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
Share capital |
216 |
216 |
216 |
|
Share premium |
11,496 |
11,496 |
11,496 |
|
Merger reserve |
1,055 |
1,055 |
1,055 |
|
Currency reserve |
(598) |
(412) |
(411) |
|
Capital redemption reserve |
18 |
18 |
18 |
|
Treasury shares |
(1,025) |
(1,025) |
(1,025) |
|
Retained earnings |
8,990 |
9,406 |
9,916 |
|
Own shares |
(3) |
(3) |
(3) |
|
TOTAL SHAREHOLDERS' EQUITY |
20,149 |
20,751 |
21,262 |
|
NON-CONTROLLING INTEREST |
6 |
6 |
6 |
|
TOTAL EQUITY |
20,155 |
20,757 |
21,268 |
Consolidated Cashflow Statement
Interim report for the six months ended 31 March 2022
|
|
6 months ended 31 March 2022 £000 Unaudited |
6 months ended 31 March 2021 £000 Unaudited |
Year ended 30 September 2021 £000 Audited |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
(Loss)/profit for the period |
(179) |
564 |
1,114 |
|
Adjustments for: |
|
|
|
|
Depreciation |
127 |
141 |
261 |
|
Amortisation of right to use assets |
501 |
464 |
969 |
|
Exchange adjustments |
15 |
32 |
38 |
|
Finance expense |
60 |
33 |
110 |
|
Tax expense |
309 |
291 |
746 |
|
Equity settled share-based payment charge |
272 |
158 |
118 |
|
OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS |
1,105 |
1,683 |
3,356 |
|
(Increase)/decrease in trade and other receivables |
(1,611) |
126 |
(881) |
|
Decrease in trade and other payables |
(235) |
(1,486) |
(1,465) |
|
CASH (USED)/GENERATED IN OPERATIONS |
(741) |
323 |
1,010 |
|
Tax paid |
(390) |
(184) |
(763) |
|
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES |
(1,131) |
139 |
247 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
Interest received |
- |
- |
- |
|
Acquisition of property, plant and equipment |
(319) |
(103) |
(187) |
|
Acquisition of intangible asset |
(244) |
(136) |
(334) |
|
NET CASH OUTflow FROM INVESTING ACTIVITIES |
(563) |
(239) |
(521) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
Interest paid |
(60) |
(33) |
(110) |
|
Repayment of borrowings |
(1,000) |
(3,000) |
(3,250) |
|
Proceeds of borrowings |
1,000 |
250 |
250 |
|
Repayment of lease liabilities |
(635) |
(437) |
(928) |
|
Dividends paid to the equity shareholders of the parent |
(392) |
(391) |
(391) |
|
NET CASH OUTFLOW FROM FINANCING ACTIVITIES |
(1,087) |
(3,611) |
(4,429) |
|
Net decrease in cash and cash equivalents |
(2,781) |
(3,711) |
(4,703) |
|
Effect of foreign exchange on cash and cash equivalents |
(15) |
(32) |
(38) |
|
Cash and cash equivalents at start of period |
6,474 |
11,215 |
11,215 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
3,678 |
7,472 |
6,474 |
Consolidated Statement of Changes of Equity
Interim Report for the six months ended 31 March 2022
For the six months ended 31 March 2022 (Unaudited):
|
|
Share capital £000 |
Share £000 |
Treasury shares £000 |
Merger £000 |
Other £000 |
Retained earnings £000 |
Own £000 |
Total(1) £000 |
Non- £000 |
Total £000 |
|
CLOSING BALANCE AT 30 SEPTEMBER 2021 |
216 |
11,496 |
(1,025) |
1,055 |
(393) |
9,916 |
(3) |
21,262 |
6 |
21,268 |
|
Loss for the period |
- |
- |
- |
- |
- |
(179) |
- |
(179) |
- |
(179) |
|
Other comprehensive loss for the period |
- |
- |
- |
- |
(187) |
- |
- |
(187) |
- |
(187) |
|
Total comprehensive loss for the period |
- |
- |
- |
- |
(187) |
(179) |
- |
(366) |
- |
(366) |
|
Contributions by and distributions to owners |
|
|
|
|
|
|
|
|
|
|
|
Dividend |
- |
- |
- |
- |
- |
(783) |
- |
(783) |
- |
(783) |
|
Share-based payment charge |
- |
- |
- |
- |
- |
36 |
- |
36 |
- |
36 |
|
Purchase of Treasury shares |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Total contributions by and distributions to owners |
- |
- |
- |
- |
- |
(747) |
- |
(747) |
- |
(747) |
|
CLOSING BALANCE AT 31 MARCH 2022 |
216 |
11,496 |
(1,025) |
1,055 |
(580) |
8,990 |
(3) |
20,149 |
6 |
20,155 |
For the six months ended 31 March 2021 (Unaudited):
|
|
Share capital £000 |
Share £000 |
Treasury shares £000 |
Merger £000 |
Other £000 |
Retained earnings £000 |
Own £000 |
Total(1) £000 |
Non- £000 |
Total £000 |
|
CLOSING BALANCE AT 30 SEPTEMBER 2020 |
216 |
11,496 |
(1,025) |
1,055 |
(431) |
9,075 |
(3) |
20,383 |
6 |
20,389 |
|
Profit for the period |
- |
- |
- |
- |
- |
564 |
- |
564 |
- |
564 |
|
Other comprehensive income for the period |
- |
- |
- |
- |
37 |
- |
- |
37 |
- |
37 |
|
Total comprehensive income for the period |
- |
- |
- |
- |
37 |
564 |
- |
601 |
- |
601 |
|
Contributions by and distributions to owners |
|
|
|
|
|
|
|
|
|
|
|
Dividend |
- |
- |
- |
- |
- |
(391) |
- |
(391) |
- |
(391) |
|
Share-based payment charge |
- |
- |
- |
- |
- |
158 |
- |
158 |
- |
158 |
|
Purchase of Treasury shares |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Total contributions by and distributions to owners |
- |
- |
- |
- |
- |
(233) |
- |
(233) |
- |
(233) |
|
CLOSING BALANCE AT 31 MARCH 2021 |
216 |
11,496 |
(1,025) |
1,055 |
(394) |
9,406 |
(3) |
20,751 |
6 |
20,757 |
Consolidated Statement of Changes of Equity (continued)
Interim Report for the six months ended 31 March 2022
For the year ended 30 September 2021 (Audited):
|
|
Share capital £000 |
Share £000 |
Treasury shares £000 |
Merger £000 |
Other £000 |
Retained earnings £000 |
Own £000 |
Total(1) £000 |
Non- £000 |
Total £000 |
|
OPENING BALANCE AT 1 OCTOBER 2020 |
216 |
11,496 |
(1,025) |
1,055 |
(431) |
9,075 |
(3) |
20,383 |
6 |
20,389 |
|
Profit for the year |
- |
- |
- |
- |
- |
1,114 |
- |
1,114 |
- |
1,114 |
|
Other comprehensive income for the year |
- |
- |
- |
- |
38 |
- |
- |
38 |
- |
38 |
|
Total comprehensive income for the year |
- |
- |
- |
- |
38 |
1,114 |
- |
1,152 |
- |
1,152 |
|
Dividends |
- |
- |
- |
- |
- |
(391) |
- |
(391) |
- |
(391) |
|
Share-based payment charge and associated costs |
- |
- |
- |
- |
- |
118 |
- |
118 |
- |
118 |
|
Purchase of Treasury shares |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
Issue of new shares |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
CLOSING BALANCE AT 30 SEPTEMBER 2021 |
216 |
11,496 |
(1,025) |
1,055 |
(393) |
9,916 |
(3) |
21,262 |
6 |
21,268 |
(1) Total equity attributable to the equity holders of the Parent
(2) 'Other reserves' combines the currency reserve and capital redemption reserve. The movement in the current and prior year relates to the translation of foreign currency equity balances and foreign currency non-monetary items.
1 BASIS OF PREPARATION
The consolidated interim financial information has been prepared using accounting policies which are consistent with those applied at the prior year end 30 September 2021 and that are expected to be adopted in the Group's full financial statements for the year ending 30 September 2022.
The financial information in this interim report is in compliance with the recognition and measurement principles of international accounting standards but does not include all disclosures that would be required under IFRSs and are not IAS 34 compliant. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of this financial information. The financial information for the half years ended 31 March 2022 and 31 March 2021 does not constitute statutory accounts within the meaning of Section 434(3) of the Companies Act 2006 and is unaudited but has been reviewed by our auditors.
The comparative financial information for the year ended 30 September 2021 included within this report does not constitute the full statutory accounts for that period. The statutory Annual Report and Financial Statements for 2021 have been filed with the Registrar of Companies. The Independent Auditor's Report on that Annual Report and Financial Statements for 2021 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The Financial Statements have been prepared on a going concern basis. In reaching their assessment, the Directors have considered a period extending at least twelve months from the date of approval of this financial report.
The COVID-19 pandemic had a huge impact on economies around the world. Following the successful roll out of vaccinations, the potential impact of lockdowns causing the closures of world economies appears to have reduced in risk. However, the Directors continue to monitor developments across the markets the Group operate in and the potential ongoing impact on the Group post pandemic in both the short and medium term. Particular focus is on the key risks of: delays by clients in contracting for claims advice; projects being suspended or planned projects not proceeding which could potentially result in a reduction in staff utilisation levels; and the impact of the current situation on the financial stability of clients causing delays to payments.
The Directors have prepared cash flow forecasts including a stressed scenario covering a period of more than 12 months from the date of releasing these financial statements. This assessment has included consideration of the forecast performance of the business for the foreseeable future, the cashflows and financing facilities available to the Group. In preparing these forecasts, the Directors have considered sensitivities such as a reduction in both revenues and debtor receipts. The forecasts show that the Group could incur a further reduction in revenues of in excess of 14% compared to baseline levels if combined with no remedial action to the cost base and a significant debtor stretch due to a reduction in cash collections in excess of £1.5m and still have sufficient headroom to operate. In all scenarios, the Group remained in a cash positive position with headroom throughout and as such there were no concerns with the banking covenants associated with the Group's facilities. At 31 March 2022 the Group had cash reserves of £3.7m with an undrawn revolving credit facility of £5.0m available until March 2023.
Based on the cash flow forecasts prepared including appropriate stress testing, the Directors are confident that any funding needs required by the business will be sufficiently covered by the existing cash reserves and the undrawn additional credit facility. As such these Financial Statements have been prepared on a going concern basis.
2 TAXATION
The tax charge for the half-year ended 31 March 2022 is based on the estimated tax rates in the jurisdictions in which the Group operates, for the year ending 30 September 2022
3 DIVIDEND
In view of the medium term prospects for the Group along with the strong balance sheet position, the Board recommends the payment of an interim dividend of 0.75p per share for 2022 (2021: 0.75p per share). During the period, the Group paid an interim dividend of 0.75p per share (2021: 0.75p per share).
4 POST BALANCE SHEET EVENTS
Post period end the Group agreed that 25 employees, primarily based in the Middle East region but including employees based in Malaysia who work on Middle East assignments, would leave the Company on 1 June 2022 and immediately join another entity in the region (the "Counterparty"). The Company and the Counterparty have agreed that on leaving these employees will retain certain live project assignments, but the Counterparty will be subject to certain restrictive covenants in relation to continuing clients and employees of Driver Group. No exceptional employment termination costs will be payable by the Company in relation to the transfer.
In addition, the Counterparty will assist in collection of approximately £3.5 million of Driver Group's current regional debtor book. The Counterparty has paid circa £2 million in cash upfront to the Company as an advance payment in respect of the debtor book and, following the transfer, will also assist the Company in collection of the remaining debtors, which primarily attach to non-transferring employees.
5 SUMMARY SEGMENTAL ANALYSIS
REPORTABLE SEGMENTS
For management purposes, the Group is organised into three operating divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific (APAC). These divisions are the basis on which the Group is structured and managed, based on its geographic structure. The following key service provisions are provided across all three operating divisions: quantity surveying, planning / programming, quantum and planning experts, dispute avoidance / resolution, litigation support, contract administration and commercial advice / management. Segment information about these reportable segments is presented below.
|
Six months ended 31 March 2022 (Unaudited) |
Europe & Americas |
Middle East |
Asia Pacific |
Eliminations |
Unallocated |
Consolidated |
|
Total external revenue |
17,370 |
5,405 |
1,654 |
- |
- |
24,429 |
|
Total inter-segment revenue |
746 |
450 |
290 |
(1,486) |
- |
- |
|
Total revenue |
18,116 |
5,855 |
1,944 |
(1,486) |
- |
24,429 |
|
Segmental profit |
2,377 |
(332) |
(485) |
- |
- |
1,560 |
|
Unallocated corporate expenses(1) |
- |
- |
- |
- |
(1,098) |
(1,098) |
|
Share-based payment charge |
- |
- |
- |
- |
(272) |
(272) |
|
Operating profit/(loss) |
2,377 |
(332) |
(485) |
- |
(1,370) |
190 |
|
Finance income |
- |
- |
- |
- |
- |
- |
|
Finance expense |
- |
- |
- |
- |
(60) |
(60) |
|
Profit/(loss) before taxation |
2,377 |
(332) |
(485) |
- |
(1,430) |
130 |
|
Taxation |
- |
- |
- |
- |
(309) |
(309) |
|
Profit/(loss) for the period |
2,377 |
(332) |
(485) |
- |
(1,739) |
(179) |
|
|
|
|
|
|
|
|
(1) Unallocated costs represent Directors' remuneration, administration staff, corporate head office costs and expenses associated with AIM.
|
Six months ended 31 March 2021 (Unaudited) |
Europe & Americas |
Middle East |
Asia Pacific |
Eliminations |
Unallocated |
Consolidated |
|
Total external revenue |
17,179 |
5,689 |
2,089 |
- |
- |
24,957 |
|
Total inter-segment revenue |
- |
- |
18 |
(18) |
- |
- |
|
Total revenue |
17,179 |
5,689 |
2,107 |
(18) |
- |
24,957 |
|
Segmental profit |
2,527 |
(398) |
(278) |
- |
- |
1,851 |
|
Unallocated corporate expenses(1) |
|
|
|
|
|
|
|
Share-based payment charge |
- |
- |
- |
- |
(158) |
(158) |
|
Operating profit/(loss) |
2,527 |
(398) |
(278) |
- |
(963) |
888 |
|
Finance income |
- |
- |
- |
- |
- |
- |
|
Finance expense |
- |
- |
- |
- |
(33) |
(33) |
|
Profit/(loss) before taxation |
2,527 |
(398) |
(278) |
- |
(996) |
855 |
|
Taxation |
- |
- |
- |
- |
(291) |
(291) |
|
Profit/(loss) for the period |
2,527 |
(398) |
(278) |
- |
(1,287) |
564 |
|
|
|
|
|
|
|
|
|
Year ended 30 September 2021 (AUDITED) |
Europe & Americas |
Middle East |
Asia Pacific |
Eliminations |
Unallocated |
Consolidated |
|
Total external revenue |
33,734 |
10,919 |
4,119 |
- |
- |
48,772 |
|
Total inter-segment revenue |
468 |
798 |
220 |
(1,486) |
- |
- |
|
Total revenue |
34,202 |
11,717 |
4,339 |
(1,486) |
- |
48,772 |
|
Segmental profit/(loss) |
4,947 |
(737) |
(408) |
- |
- |
3,802 |
|
Unallocated corporate expenses(1) |
- |
- |
- |
- |
(1,683) |
(1,683) |
|
Share-based payments charge and associated costs |
- |
- |
- |
- |
(149) |
(149) |
|
One off severance costs |
- |
- |
- |
- |
- |
- |
|
Operating profit/(loss) |
4,947 |
(737) |
(408) |
- |
(1,832) |
1,970 |
|
Finance income |
- |
- |
- |
- |
- |
- |
|
Finance expense |
- |
- |
- |
- |
(110) |
(110) |
|
Profit/(loss) before taxation |
4,497 |
(737) |
(408) |
- |
(1,942) |
1,860 |
|
Taxation |
- |
- |
- |
- |
(746) |
(746) |
|
Profit/(loss) for the period |
4,497 |
(737) |
(408) |
- |
(2,688) |
1,114 |
|
|
|
|
|
|
|
|
|
OTHER INFORMATION |
|
|
|
|
|
|
|
Non current assets |
3,244 |
249 |
74 |
- |
2,449 |
6,016 |
|
Reportable segment assets |
14,865 |
10,051 |
2,401 |
- |
4,095 |
31,412 |
|
Capital additions(2) |
88 |
71 |
12 |
- |
350 |
521 |
|
Depreciation and amortisation |
602 |
240 |
157 |
- |
231 |
1,230 |
(1) Unallocated costs represent Directors' remuneration, administration staff, corporate head office costs and expenses associated with AIM.
(2) Capital additions comprise of additions to property, plant and equipment and intangible assets.
6 EARNINGS PER SHARE
|
|
6 months ended 31 March 2022 £000 Unaudited |
6 months ended 31 March 2021 £000 Unaudited |
Year ended 30 September 2021 £000 Audited |
|
(Loss)/Profit for the financial period attributable to equity shareholders |
(179) |
564 |
1,114 |
|
Share-based payments cost and associated costs |
272 |
158 |
149 |
|
Underlying* profit for the financial period |
93 |
722 |
1,263 |
|
Weighted average number of shares: |
|
|
|
|
- Ordinary shares in issue |
53,962,868 |
53,962,868 |
53,962,868 |
|
- Shares held by EBT |
(3,677) |
(3,677) |
(3,677) |
|
- Treasury shares |
(1,687,208) |
(1,787,811) |
(1,787,811) |
|
Basic weighted average number of shares |
52,271,983 |
52,171,380 |
52,171,380 |
|
Effect of employee share options |
2,684,905 |
1,939,155 |
2,125,958 |
|
Diluted weighted average number of shares |
54,956,888 |
54,110,535 |
54,297,338 |
|
Basic (loss)/earnings per share attributable to equity shareholders of the Parent (pence) |
(0.3)p |
1.1p |
2.1p |
|
Diluted (loss)/earnings per share attributable to equity shareholders of the Parent (pence) |
(0.3)p |
1.0p |
2.1p |
|
Underlying* basic earnings per share |
0.2p |
1.4p |
2.4p |
*Underlying figures are stated before the share-based payment costs (this is not a GAAP measure) and compensation for loss of office.