reports
- David O'Brien
Trading update - activity remains on budget
The pre-close trading update from Driver Group delivered encouraging progress overall, with the smaller regions returning to profitability and a positive performance in the UK and Europe. The cost rationalisation was completed during the period following the move to a smaller London office. Cash continues to remain high, representing 32% of the market capitalisation. The strategy put in place in H2 of FY23 is expected to deliver higher revenues and profitability ahead of 2027, not least reflect...
Hybridan Small Cap Feast - 14 Dec 23
14th December 2023 Small Cap Team will take a break until Monday 8 January 2024 after this Friday 15th December. Merry Christmas to all our readers. @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be...
- David O'Brien
New strategic plan to further improve margins
FY23 preliminary results delivered a strong turnaround in profitability on modestly lower revenues, highlighting action taken on costs and improved levels of utilisation. With a solid foundation now in place, we expect the new strategic plan to deliver an uplift in gross margins of c. 20% by the end of FY27. With plans in place to expand top line revenues plus a focus on added value expert services and related sectors, the outlook is bright and not yet reflected in the company’s current valuatio...
- David O'Brien
Strategy on track, despite timing issues
Driver Group has issued a trading update earlier than normal, citing a weak Q3 (reflecting a combination of timing issues and the later Easter) as reasons. Nevertheless, Q4 has witnessed a return to more normal patterns of trading and coupled with the rationalisation programme yet to impact results and the pipeline of orders looking more encouraging, we think the medium-term outlook appears favourable. The further improvement in net cash levels provides the Board with opportunities, not least in...
Hybridan Small Cap Feast - 13 Jun 23
13th June 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objecti...
- David O'Brien
Fires extinguished, recovery builds
The interim results from Driver Group were ahead of the profits guidance provided during the pre-close update in late April. Progress on costs has been made as the rationalisation programme has kicked in. The EuAm (Europe & the Americas) region has generated a strong performance, with revenues and profitability at record levels and there is further scope on margins and utilisation levels. The smaller regions produced an improved performance, with expectations of delivering profits for the full ...
- David O'Brien
Welcome news of progress
The pre-close trading update from Driver Group was encouraging, with static revenues (signifying rising productivity), improving profitability and margins, and the move into the black for the first time in two years within the Middle East region. Cash levels continued to improve, highlighting the collection of doubtful debts and higher profitability. We expect the solid foundations put in place by the management team over the last 12-18 months will provide a strong base from which to grow mean...
Hybridan Small Cap Feast - 23 Feb 23
23 February 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objec...
- David O'Brien
A profitable start to the new year
The new financial year has started strongly with a strong pipeline of opportunities and a lower cost base following an expanded rationalisation programme that resulted in most regions delivering a profit YTD in FY23. The results for FY22 were broadly in line with revised expectations, although the lack of forward visibility results in a continued suspension of estimates. That said, we expect FY23 to prove to be a turning point in the Group’s fortunes as utilisation levels improve now that projec...
- David O'Brien
A sturdier foundation, with positive momentum
Management has undertaken a significant rationalisation programme, successfully commissioned new ERP software, and explored means of reducing central costs to place the Group on a sounder footing moving forward, following an extremely challenging FY22 for Driver Group. The actions are paying off, with Q1 ’23 moving into profit, with further progress anticipated from Q2 onwards. While it is difficult to assess the valuation of a business with no published estimates, what is very clear is the dir...
- David O'Brien
Inflexion point
Driver Group is reaching an inflexion point as it looks to focus operations on the more profitable and less risky geographical regions. Following the H1 period end, management transferred 25 staff in the UAE and Malaysia and several contracts to an unnamed Counterparty in exchange for an advance payment of trade receivables (£2m) and help to collect further monies owed to the Group. As measured by adj. PBT, the interim results were in the middle of the guidance range. We think the resulting red...
- David O'Brien
An elegant solution
The decision to transfer the bulk of Driver Group’s UAE office to a Counterparty solves an ongoing cash collection issue and saves on exceptional (and cash heavy) costs at the same time: a masterstroke in our opinion. The level of cost savings will be a multiple of previous expectations, with improved cash flow, profitability, and higher consultant utilisation levels in Europe another positive side effect. This elegant solution gives confidence in the strength of leadership now in situ within th...
- David O'Brien
A strengthening of the Board
Driver Group is currently part way through a rationalisation of its Middle Eastern and APAC businesses, following losses generated in the regions during H1 ’22. The combination of the new CFO announced, Charlotte Parsons, and the commissioning of a new ERP software will result in more timely reporting procedures and improved management information. Charlotte has extensive experience within the consulting sector and providing high-level strategic and change management advice to several Boards. W...
Driver Group: 3 directors
Three Directors at Driver Group bought/maiden bought 92,500 shares at 27p. The significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two year...
- David O'Brien
- Mike Jeremy
Fix Underway
With plans in place to review the Middle East and APAC regions, the trading update suggests that management were taken by surprise. The rationalisation process is likely to be more severe than originally anticipated, potentially including an overhaul of reporting procedures. We expect the focus to turn to gross margins, cash collection and higher utilisation levels – involving headcount reductions, office closures, and a focus on higher quality customers. The likely scale of the required action...
- David O'Brien
Reasons for optimism
Despite the delay, the results for the year to September were in-line with expectations at the adj. PBT level, with the level of dividend doubling y-o-y. The latter highlights the Board’s confidence in improved trading in H2 2022 and the levels of net cash. Q4 ‘21 enjoyed a pick-up in activity levels, which continued into the first two months of the new year, albeit disrupted briefly by Covid in December. With costs at a multi-year low, a rising number of fee earners operating in the added-value...
- David O'Brien
Positive momentum picking up steam
Today’s trading update from Driver Group is optimistic, highlighting a material improvement in activity levels during Q4 and a positive start to Q1 ’22. The rise in demand for the higher-margin expert services, combined with a decline in the impact of the pandemic on decision making, a restructuring of the Middle East / APAC regions, and new offices, have resulted in renewed positive momentum. We have introduced estimates for FY21 and FY22, with the latter reflecting these strong growth drivers....
- David O'Brien
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 w...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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