Driver continued to trade positively throughout H2, with FY18 results expected to be ahead of expectations. As a result we have increased our EPS forecasts by 9%/12% in FY18/19 (0%/16% including share based payments). The outperformance was driven primarily by higher utilisation rates (80% in FY18 vs. 76% in FY17) and a focus on higher margin work (e.g. growth in services provided by Diales). Driver’s management team has successfully delivered on its turnaround plan. Since the February 2017 placing, we have cumulatively upgraded our EPS forecasts by 56% and 53% respectively. The focus is now on delivering continued revenue and profit growth. We believe earnings momentum will continue to drive the share price higher and we expect a positive reaction to today’s trading update.
