Driver Group shares surge 11%

Driver Group shares (LON: DRV) surged over 11% on Monday as the group said it expects pre-tax profit to be £2.5m for the year to September 30.

Due to challenges around the pandemic, profit will be a 16% decrease from last year’s £3m total.

“Since January 2020 Driver Group has been managing the impact of Covid-19 on the business and by adopting a flexible home working model has continued to service its clients effectively and sustainably with the minimum of business interruption. Activity levels overall have been broadly consistent with those achieved in the first half, with a strong performance in the UK and Europe offset by a weaker result in the Middle East and Asia Pacific regions,” said the group in a statement.

Driver Group has opened a new office in New York which will enhance the group’s ability to service its clients in North America and provides improved access to the important South American markets.

The firm has also restructured the Middle East and the Asia Pacific operations so it can meet the changing business demands in those regions.

Mark Wheeler, chief executive of Driver Group, said: “I am pleased to be able to report that Driver Group has performed well during the year and has managed the uncertainty caused by the Covid-19 pandemic to ensure the business remained profitable and cash generative throughout the year in spite of a reduced level of activity.

“I am confident that the reduced cost base and renewed focus on our core business of higher margin expert witness and dispute resolution in both APAC and the Middle East will deliver improved operating performance. Alasdair and Stefan have proven track records in our business and I look forward to working with them and with our new colleagues in our operations in America and South Africa over the next few years to deliver significant progress,” he added.

Driver Group shares (LON: DRV) are 8.09% higher at 48,10 (1054GMT).