Driver’s FY20 results were well flagged in the 26th October trading update. The Group achieved adj. PBT of £2.5m (FY19: £3.0m), which reflected the impact of COVID-19 in H2. The Group continues to be strongly cash generative, with net cash increasing to £8.2m at the year end (FY19: £5.4m). Whilst visibility remains limited, activity levels in FY21 to date have been encouraging and the Board has therefore declared a final dividend of 0.75p. The strategic review has concluded with a new target to achieve a double digit operating profit margin over the next five years (FY20: 4.9%, FY13 peak: 9.4%). This is an ambitious target that is expected to be delivered through a greater focus on higher margin expert services. Whilst management guidance, and therefore our forecasts, remains suspended, we would expect a return to profit growth in the current year, supported by an improving COVID backdrop.
