Activity levels improved in Q2
Improving momentum from Q2, which has continued into Q3, helped to deliver a satisfactory outcome for the interim results. With the loss-making US business closed, encouraging activity in the EuAm region, a strong performance in the Middle East pipeline and rising utilisation levels, we remain increasingly confident the Group will hit FY25 expectations. The improved strategy, coupled with the healthy balance sheet, has enabled the Board to fund an attractive dividend as well as to return cash shareholders via share buybacks.Our valuation combines peer group comparison models and the level of net cash. The latter equates to 23.7% of the Group’s market capitalisation, valuing the operating business at 7.5x FY25 EBIT, well below sector averages (source: Koyfin). We maintain our fair value/share at 35p to reflect unchanged estimates and note the high dividend yield as an added attraction for investors.
Driver Group is engaged in providing consultancy services to the engineering and construction industries. Co. is organized into three operating divisions: Europe and Americas (EuAm), Asia Pacific, Middle East and Africa (AMEA) and Initiate. In EuAm and AMEA the key service provisions are: quantity surveying, planning/programming, quantum and planning personnel, dispute avoidance/resolution, litigation support, contract administration and commercial advice/management. In Initiate the key service provisions are capital investment consultancy providing development, project and contracting management services to the infrastructure market in the U.K.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.