Driver‘s year end update reads very positively, with PBT and cash generation ahead of expectations. Market conditions are favourable and margins are benefiting from the steps taken by the new management team in the last year or so. We upgrade FY17 PBT by 15% with an 8% upgrade rolling through for FY18. We see continuing scope for outperformance and expect today’s update to be well received, bringing confirmation that the turnaround of the Group continues post the fundraising earlier this year. In our view the shares are attractively valued on an FY18 EV/EBITDA rating of c.7x. The Board expects to report prelims on or around 12th December.
