Creditable results and research initiation
In the context of ongoing lockdowns and the comparative period showing little sign of being affected by the pandemic, we think results for the six months to March 2021 are highly creditable. The Europe and Americas division continues to perform at new heights, with a new Head of the combined Middle East and APAC regions expected to improve the performance from those regions in the medium-term. Optimism for the outlook resulted in a return of an interim dividend, with net cash available to fund working capital once recovery begins to feed through and potentially, bolt-on acquisition(s).On valuation, we think that its current share price could leave DRV in a vulnerable position within a consolidating sector. Although we are not producing financial projections at this stage, we have postulated what the implications of the five-year strategy review implemented in H2 20 could mean for profitability in FY25. We think that there is real scope for optimism on this topic, which we believe the share price fails to acknowledge. Similarly, our peer group valuation model suggests a significant potential upside for the fair value of DRV’s shares.
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.