Results ahead of expectations
FY24 was the first year in a four-year transformation process for Diales. Profitability was ahead of expectations, notwithstanding staffing related issues in North America and two customers falling into administration during the year. The move to a hub-and-spoke delivery model has increased utilisation levels further, with the new ERP software delivering ‘real-time’ information and the scope for greater efficiencies. With an expected easing of economic headwinds and reduced political uncertainty, plus a growing pipeline of opportunities, we anticipate increased expert headcount and rising utilisation to drive further growth and margin expansion within the forecast period. The net cash of £4.3m gives the Board options, not least possible M&A and a completion of the share buyback programme.Net cash / share currently amounts to 7.9p or 29.5% of the market capitalisation, thereby underpinning the sector-leading yield and current share price. The shares trade at a marked discount to its peers and the introduction of conservative estimates leads us to increase our fair value to 47p / share, from 40p previously, which represents a healthy premium to the current price.
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.