The Group has swung from a Loss to a Profit in FY17 while Revenues grew 15%, signifying a successful turnaround.
Companies: Diales Group PLC
Driver Group (LON: DRV) shares have spiked this morning off the back of its full-year results which highlight a successful turnaround over the past 12 months.
Revenues grew 15% to £60m while the Operating Loss of £0.2m in FY16 swung to an Operating Profit of £2.5m, impressing brokers and investors alike.
Shares in the Group were up 6% at the time of writing to 67p, trading at its highest price in almost two years.
A number of board changes took place during the year as well as Group CFO Hugh Cawley standing down today, making way for David Kilgour.
Management made the strategic move to streamline the company to comprise of only core businesses, leading to the disposal of its South African division as well as Initiate UK.
Non-Executive Chairman Steven Norris said in his statement:
"The Group's strategy remains to focus on those areas of expertise where we have a particularly strong position, in claims and dispute resolution and in expert witness work, and to consolidate the Group's position as one of the pre-eminent firms in its areas of expertise. Concentration on this clearly articulated aim has demonstrably so far delivered rapidly improved revenue growth and better profitability."
Broker N+1 Singer said in its note today the Group begins the new year on a "very strong footing":
"Recent trading momentum has continued into the early months of the new year and the Group is now in excellent shape. We retain our PBT forecasts at this early stage (EPS +2% due to a lower tax rate) and we see scope for outperformance"
The Group trades on a forecast PE multiple of 16x and has a current Market Cap of £34m.
