REG - Driver Group plc - Interim Report: Half-year ended 31 March 2024
12/06/2024 07:15
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RNS Number : 0500S Driver Group plc 12 June 2024
DRIVER GROUP PLC
Interim Report
For the six months ended 31 March 2024
Financial Highlights - for the six months ended 31 March 2024
6 months 6 months Change
Ended Ended £000
31 March 2024 31 March 2023 £000
£000 Unaudited**
Unaudited
Revenue 22,474 22,730 (256)
Gross Profit 6,068 6,246 (178)
Gross Profit % 27% 27% -
Profit before tax 513 528 (15)
Add: Share-based payment charge 49 202 (153)
Underlying* profit before tax 562 730 (168)
Underlying* profit before tax % 3% 3% -
Underlying* earnings per share from continuing operations 0.9p 1.0p (0.1)p
Profit before tax 513 528 (15)
Loss on discontinued operations before tax (103) (20) (83)
Underlying* profit before tax 410 508 (98)
Net cash 3,569 5,277 (1,708)
Net cash per share 6.8p 10.1p (3.3)p
Dividend per share 0.75p 0.75p -
*Underlying figures are stated before share-based payment costs
**Restated to exclude discontinued operations
Financial Summary
· Revenue from continuing operations of £22.5m (2023: £22.7m).
· Gross profit margin at 27% (2023: 27%), with gross profit of
£6.1m (2023: 6.2m).
· Underlying* profit before tax £0.6m (2023: £0.7m), a margin of
3% (2023: 3%).
· Profit before tax £0.5m (2023: £0.5m).
· Net cash of £3.6m (2023: £5.3m), a year on year decrease of
£1.7m mainly due to dividend and tax payments and the timing of the planned
cessation of a JV agreement in Canada and the Middle East.
· Net cash as at 31 May 2024 of £4.2m
· Dividend maintained in the period at 0.75p (2023: 0.75p)
Operational Highlights
· Overall utilisation rates improved to 79.6% (2023: 79.2%)
· Europe & Americas (EuAm) reported underlying* profit before
tax for the period of £2.3m (2023: £2.9m)
· Middle East (ME) returned to profit with reported underlying*
profit before tax for the period of £0.1m (2023: loss £0.1m)
· Asia Pacific (APAC) returned to profit with reported underlying*
profit before tax for the period of £0.1m (2023: loss £0.1m)
Capital Allocation
· As part of its capital allocation policy, the Group will today
commence an initial ordinary share buyback programme of £250k, while the
Board evaluates potential acquisition opportunities. Having identified at
least £1m of surplus cash, as highlighted in December 2023, a further amount
of up to £750k will be allocated to the buyback programme, depending on
progress with potential acquisitions, in line with the transformation strategy
and to achieve the best return for shareholders.
IT Security
· The Group was recently the target of a cyber incident, which
sought to encrypt the company's data. Following significant investment over
the last 3 years, including cyber essentials accreditation and thanks to the
diligence of the internal IT team, this incident was firmly defended and has
caused limited disruption to the business. External IT experts have been
appointed and their investigation is continuing.
Outlook
· Utilisation continuing at 2023 levels
· Q3 revenue and utilisation improving with an encouraging pipeline
of new enquiries underpinning our confidence for H2 FY24
· Cost reduction programme completed
· Real time management information tool being tested
· Group's transformation strategy progressing
Mark Wheeler, Chief Executive Officer of Driver Group, said:
'I am pleased to report that H1 FY 24 was profitable. The strategic actions
that management took last year have progressed well and are starting to
produce valuable and meaningful results, and I look forward to reporting
further on this progress in due course. There is also considerable excitement
in the business about the brand transition to Diales, which will take effect
from 1 July 2024. We have started H2 FY24 strongly, and we expect the business
to generate further significant momentum as the benefits of our transformation
strategy flow through to our clients and shareholders.'
Results presentation
Management will host a hybrid presentation for analysts at 10:00am on 12 June
2024, at Singer Capital Markets' offices, 1 Bartholomew Lane, London, EC2N
2AX, and virtually. Analysts who would like to attend the presentation should
register their interest with Acuitas Communications at driver@acuitascomms.com
or on 020 3745 0293.
The Group will also host a presentation for investors on 12 June, at 12:00pm.
Questions can be submitted before and during the online event.
To register for the webinar, please visit this link:
https://www.equitydevelopment.co.uk/news-and-events/drivergroup-investor-presentation-12june2024
(https://www.equitydevelopment.co.uk/news-and-events/drivergroup-investor-presentation-12june2024)
.
A recording of the presentation will be available shortly afterwards here:
https://www.equitydevelopment.co.uk/research/tag/driver-group
(https://www.equitydevelopment.co.uk/research/tag/driver-group) .
ENDS
Enquiries:
Driver Group plc
Mark Wheeler (CEO) 020 7377 0005
Charlotte Parsons (CFO) 020 7496 3000
Singer Capital Markets (Nomad & Broker)
Sandy Fraser
Jen Boorer
James Todd
Acuitas Communications 020 3745 0293 / 07799 767676
Simon Nayyar simon.nayyar@acuitascomms.com (mailto:simon.nayyar@acuitascomms.com)
Arthur Dingemans arthur.dingemans@acuitascomms.com
INTRODUCTION
During the period, Driver Group has continued to trade profitably, and has
focused on driving improvements in utilisation in the face of what has
continued to be challenging trading conditions across global markets. We are
pleased to report positive progress in H1 FY24 and that this momentum has
continued into Q3 FY24.
The Group's underlying* profit before tax remained broadly constant at £0.6m
(£0.7m in the corresponding FY23 period) on revenue which has remained
stable. We have maintained the performance of FY23, and this has, in turn,
laid solid foundations for further improvements in Group performance that are
expected to drive the Group's future profitability.
The Group continues to make good progress on the delivery of its
transformation strategy, announced in December 2023, in line with the
four-year timeframe. It is expected that many of the key actions arising from
the transformation strategy are likely to begin to have effect during H2 FY24.
The Board looks forward to reporting further on this in due course.
The Group has taken steps to ensure a smooth transition to Diales, its premium
professional services brand, which will take effect from 1 July 2024. This
brand transition will consolidate the Group's services globally, allowing a
unified approach to its global clients for the first time in the Group's
history. Moving forward the Board expects this branding platform to increase
leverage between regions.
The Group has further implemented its hub and spoke model across our global
business to ensure overseas offices continue to focus on and benefit from work
winning which is fed back to the central hub in Europe. This has necessitated
a review of our Business Development and Marketing functions. As a result,
Business Development is now represented on the Executive Board which will
further strengthen our work winning efforts.
As announced in our transformation strategy, we continue to review the shape
and structure of our global footprint in order to ensure that it performs
optimally, and we expect to be able to provide further updates on this pillar
of the transformation strategy in due course.
The promised benefits of our IT investment are now feeding through, with ERP
now fully operational and already supporting improvements to the Group's
performance. The migration from manual processes to automated production of
financial information has been challenging but is now helping us deliver
closer to real time consolidated financial reporting. Our team in Europe are
currently trialling a real time management information tool, enabling more
efficient reporting on utilisation and we anticipate a wider roll-out of this
system across the global business in due course with accompanying efficiency
gains and improved management reporting.
Following the implementation of the new ERP system, we changed to a more
accurate method of calculating utilisation and the comparative figures are
shown using the same methodology.
The resolution of legacy issues, particularly in relation to the Middle East,
has moved into its final phase, with a significant proportion of aged cash now
collected. The structuring of the Group's office locations and staffing levels
had been adjusted to reflect the evolving needs of the business, promoting
operational responsiveness and efficiency, and enhancing client experience.
We are pleased to report that the Middle East region has returned to an
operational profit, following completion of the restructuring announced in
November 2022. This region is now contributing work to the Group's central hub
in Europe, and we do not anticipate any further issues relating to cash
collection going forward.
The EuAm region, our central business hub, has continued to perform well
overall, in spite of exceptional short-term staffing issues in North America
which materially affected H1 FY24 performance for the region. Challenges
arising from phasing of work, with a number of significant commissions
concluding coterminously, have been resolved and we do not expect this
operational issue to recur.
APAC has also returned to an operational profit during H1 FY24 and we have
seen an improvement in trading performance as a result of actions taken
following the strategic review. Following a successful office launch in Seoul
in March last year, the Group remains well positioned to expand its work with
our South Korean clients. The Group does not expect any further substantial
non-recurring costs to arise from the establishment of this new office and it
is now meeting budget expectations. APAC continues to source high value expert
and claims work for fulfilment across the Group, under our one business model.
The overheads review and cost saving measures, previously announced, have now
completed. As expected, owing to the initial overlap period of leases in
London and related moving costs, the full benefit of these savings will be
realised during H2 FY24. The Board continues to monitor its global operations
to identify opportunities to unlock further cost savings and efficiency gains.
PEOPLE
Driver Group continues to be a business focused on and driven by exceptionally
talented and highly skilled staff and the recruitment, development, and
retention of best-in-class team members remains our key priority.
The Group has made good progress on hiring key work winners and halo experts,
in line with the ambitions set out in its transformation strategy. Targeted
market analysis has yielded a pipeline of complementary acquisition
opportunities within the engineering and technical expert disciplines which
the business is actively considering.
TRADING PERFORMANCE
Group revenue for the six months to 31 March 2024 remained stable at £22.5m,
compared to the same period in 2023 (£22.7m). Overall, the Group reported
underlying* profit before tax of £0.6m (2023: £0.7m).
Revenues in the EuAm region decreased to £18.5m (2023: £19.1m) with revenues
in the Middle East unchanged at £2.2m (2023: £2.2m) and revenues in APAC
increased to £1.8m (2023: £1.4m).
The EuAm region delivered an underlying* profit before tax of £2.3m (2023:
£2.9m) while the Middle East region reported an underlying* profit before
tax of £0.1m (2023: loss £0.1m) and the APAC region reported
an underlying* profit before tax of £0.1m (2023: loss £0.1m).
Underlying* basic earnings per share from continuing operations were 0.9p
(2023: 1.0p).
The Group's net cash balance was £3.6m on 31 March 2024 (2023: £5.3m),
reflecting dividend and tax payments and the timing of the planned cessation
of a long-standing Joint Venture agreement in Canada and the Middle East. The
cash as at 31 March 2024 includes March's UK payroll expenses which were
omitted at the time of the April trading update. As at 31 May 2024 the cash
balance was £4.2m.
DIVIDEND
The final dividend announced at the time of the results for the year to 30
September 2023 (0.75p per share) in December was paid in April 2024.
Reflecting our confidence in the medium-term prospects for the Group, and with
the strong balance sheet position, the Board recommends the payment of an
interim dividend of 0.75p per share for 2024 (2023: 0.75p per share). The
interim dividend will be paid on 25 October 2024 to shareholders who are on
the register of members at the close of business on 20 September 2024, with an
ex-dividend date of 19 September 2024.
CAPITAL ALLOCATION
As part of the Group's transformation strategy, announced on 14 December 2023,
the Board will allocate its own generated cash to achieve the best returns for
shareholders. The Group has been actively considering a number of acquisition
prospects, and accordingly the Board has kept the timing of its capital
allocation plans under constant review to ensure sufficient cash headroom
remains available for an acquisition. This process remains ongoing. However
the Group will today commence an initial ordinary share buyback programme of
£250k. Having identified surplus cash of £1m, a further amount of up to
£750k will be allocated to the programme, dependent on progress with
potential acquisition targets, in line with the transformation strategy.
OUTLOOK
Driver Group's business has made an encouraging start to H2 FY24 with the UK,
Middle East and, in particular, APAC, all performing strongly. The
cost-savings strategies we implemented in FY23 have now been completed and we
expect the benefits to be felt during the remainder of H2 FY24.
Post-restructure, the Middle East and APAC are now contributing profitably,
with APAC being well positioned to contribute further during FY24 as a
consequence of work flowing from South Korea.
The Group saw strong trading in April this year, supported by increased
utilisation, and is well placed for H2 FY24 and beyond.
Consolidated Income Statement
Interim report for the six months ended 31 March 2024
6 months ended 6 months ended Year ended
31 March 2024 31 March 2023 30 September
£000 £000 2023
Unaudited Unaudited** £000
Audited
REVENUE 22,474 22,730 42,633
Cost of sales (16,469) (16,334) (31,800)
Impairment movement 63 (150) (55)
GROSS PROFIT 6,068 6,246 10,778
Administrative expenses (5,585) (5,737) (10,452)
Other operating income - 41 47
Underlying* operating profit 532 752 998
Non-recurring operational costs - - (255)
Share-based payment charge and associated costs (49) (202) (370)
OPERATING PROFIT 483 550 373
Finance income 37 32 129
Finance costs (7) (54) (63)
PROFIT BEFORE TAXATION 513 528 439
Tax expense (note 2) (107) (207) (314)
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS 406 321 125
(Loss) for the period from discontinued operations (103) (20) (461)
PROFIT/(LOSS) FOR THE PERIOD 303 301 (336)
Profit/(loss) attributable to non-controlling interests - - -
Profit/(loss) attributable to equity shareholders of the parent 303 301 (336)
303 301 (336)
Basic earnings/(loss) per share attributable to equity shareholders of the 0.6p 0.6p (0.6)p
parent (pence)
Diluted earnings/(loss) per share attributable to equity shareholders of the 0.6p 0.6p (0.6)p
parent (pence)
Underlying* basic earnings per share attributable to equity shareholders of 0.9p 1.0p 1.4p
the parent (pence) from continuing operations
Basic earnings per share attributable to equity shareholders of the parent 0.8p 0.6p 0.2p
(pence) from continuing operations
Diluted earnings per share attributable to equity shareholders of the parent 0.8p 0.6p 0.2p
(pence) from continuing operations
*Underlying figures are stated before the share-based payment costs and
non-recurring operational costs (this is not a GAAP measure)
**Presentation of results restated to reflect separate disclosure of net
losses from operations discontinued in the 2023 financial year.
Consolidated Statement of Comprehensive Income
Interim report for the six months ended 31 March 2024
6 months ended 6 months ended Year ended
31 March 2024 31 March 2023 30 September
£000 £000 2023
Unaudited Unaudited £000
Audited
PROFIT/(LOSS) FOR THE PERIOD 303 301 (336)
Other comprehensive income/(loss):
Items that could subsequently be reclassified to the Income Statement:
Exchange differences on translating foreign operations (112) 473 431
Other comprehensive income/(loss) for the year net of tax (112) 473 431
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 191 774 95
Total comprehensive income attributable to:
Owners of the parent 191 774 95
Non-controlling interest - - -
191 774 95
Consolidated Statement of Financial Position
Interim report for the six months ended 31 March 2024
6 months ended 6 months ended Year ended
31 March 2024 31 March 2023 30 September
£000 £000 2023
Unaudited Unaudited £000
Audited
NON-CURRENT ASSETS
Goodwill 2,969 2,969 2,969
Property, plant and equipment 315 344 351
Right of use assets 1,094 400 1,140
Intangible asset 672 756 714
Deferred tax assets 242 202 247
5,292 4,671 5,421
CURRENT ASSETS
Trade and other receivables 14,505 16,065 14,033
Current tax receivable 137 166 69
Cash and cash equivalents 3,569 5,277 5,833
18,211 21,508 19,935
TOTAL ASSETS 23,503 26,179 25,356
CURRENT LIABILITIES
Trade and other payables (6,807) (9,087) (8,052)
Lease creditor (587) (317) (539)
Current tax payable - - -
(7,394) (9,404) (8,591)
NON-CURRENT LIABILITIES
Lease creditor (537) (110) (618)
Deferred tax liability (160) (167) (160)
(697) (277) (778)
TOTAL LIABILITIES (8,091) (9,681) (9,369)
NET ASSETS 15,412 16,498 15,987
SHAREHOLDERS' EQUITY
Share capital 216 216 216
Share premium 11,496 11,496 11,496
Merger reserve 1,055 1,055 1,055
Currency reserve (1,062) (908) (950)
Capital redemption reserve 18 18 18
Treasury shares (1,525) (1,525) (1,525)
Retained earnings 5,213 6,145 5,676
Own shares (3) (3) (3)
TOTAL SHAREHOLDERS' EQUITY 15,408 16,494 15,983
NON-CONTROLLING INTEREST 4 4 4
TOTAL EQUITY 15,412 16,498 15,987
Consolidated Cash flow Statement
Interim report for the six months ended 31 March 2024
6 months ended 6 months ended Year ended
31 March 2024 31 March 2023 30 September
£000 £000 2023
Unaudited Unaudited £000
Audited
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(loss) for the period 303 301 (336)
Adjustments for:
Depreciation 47 84 162
Amortisation of right to use assets 298 375 611
Amortisation of intangible asset 42 42 84
Exchange adjustments 38 105 (79)
Finance income (37) (32) (129)
Finance expense 7 54 63
Tax expense 107 207 314
Equity settled share-based payment charge 23 151 319
OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL AND PROVISIONS 828 1,287 1,009
Decrease/(increase) in trade and other receivables (472) 4,283 6,246
(Decrease)/increase in trade and other payables (1,640) (3,562) (4,722)
CASH GENERATED/(USED) IN OPERATIONS (1,284) 2,008 2,533
Tax paid (181) (139) (172)
NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES (1,465) 1,869 2,361
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 37 32 129
Acquisition of property, plant and equipment (41) (44) (143)
Proceeds from the disposal of property, plant and equipment 4 - -
Acquisition of intangible asset - - -
NET CASH OUTFLOW FROM INVESTING ACTIVITIES - (12) (14)
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid (3) (54) (63)
Repayment of borrowings - - -
Proceeds of borrowings - - -
Repayment of lease liabilities (288) (961) (676)
Purchase of Treasury shares - - -
Dividends paid to the equity shareholders of the parent (394) (391) (785)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES (685) (1,406) (1,524)
Net increase/(decrease) in cash and cash equivalents (2,150) 451 823
Effect of foreign exchange on cash and cash equivalents (114) (105) 79
Cash and cash equivalents at start of period 5,833 4.931 4,931
CASH AND CASH EQUIVALENTS AT END OF PERIOD 3,569 5,277 5,833
Consolidated Statement of Changes of Equity
Interim Report for the six months ended 31 March 2024
For the six months ended 31 March 2024 (Unaudited):
Share capital Share Treasury shares Merger Other Retained earnings Own Total((1)) Non- Total
premium
reserve
reserves((2))
shares
controlling interest
Equity
£000
£000
£000
£000
£000 £000 £000 £000 £000 £000
CLOSING BALANCE AT 30 SEPTEMBER 2023 216 11,496 (1,525) 1,055 (932) 5,676 (3) 15,983 4 15,987
Profit for the period - - - - - 303 - 303 - 303
Other comprehensive loss for the period - - - - (112) - - (112) - (112)
Total comprehensive income/(loss) for the period - - - - (112) 303 - 191 - 191
Contributions by and distributions to owners
Dividend - - - - - (789) - (789) - (789)
Share-based payment charge - - - - - 23 - 23 - 23
Purchase of Treasury shares - - - - - - - - - -
Total contributions by and distributions to owners - - - - - (766) - (766) - (766)
CLOSING BALANCE AT 31 MARCH 2024 216 11,496 (1,525) 1,055 (1,044) 5,213 (3) 15,408 4 15,412
For the six months ended 31 March 2023 (Unaudited):
Share capital Share Treasury shares Merger Other Retained earnings Own Total((1)) Non- Total
premium
reserve
reserves((2))
shares
controlling interest
Equity
£000
£000
£000
£000
£000 £000 £000 £000 £000 £000
CLOSING BALANCE AT 30 SEPTEMBER 2022 216 11,496 (1,525) 1,055 (1,363) 6,478 (3) 16,354 4 16,358
Profit for the period - - - - - 301 - 301 - 301
Other comprehensive income for the period - - - - 473 - - 473 - 473
Total comprehensive income for the period - - - - 473 301 - 774 - 774
Contributions by and distributions to owners
Dividend - - - - - (785) - (785) - (785)
Share-based payment charge - - - - - 151 - 151 - 151
Purchase of Treasury shares - - - - - - - - - -
Total contributions by and distributions to owners - - - - - (634) - (634) - (634)
CLOSING BALANCE AT 31 MARCH 2023 216 11,496 (1,525) 1,055 (890) 6,145 (3) 16,494 4 16,498
Consolidated Statement of Changes of Equity (continued)
Interim Report for the six months ended 31 March 2024
For the year ended 30 September 2023 (Audited):
Share capital Share Treasury shares Merger Other Retained earnings Own Total((1)) Non- Total
premium
reserve
reserves((2))
shares
controlling interest
Equity
£000
£000
£000
£000
£000 £000 £000 £000 £000 £000
OPENING BALANCE AT 1 OCTOBER 2022 216 11,496 (1,525) 1,055 (1,363) 6,478 (3) 16,354 4 16,358
Loss for the year - - - - - (336) - (336) - (336)
Other comprehensive income for the year - - - - 431 - - 431 - 431
Total comprehensive income for the year - - - - 431 (336) - 95 - 95
Dividends - - - - - (785) - (785) - (785)
Share-based payment charge and associated costs - - - - - 319 - 319 - 319
Purchase of Treasury shares - - - - - - - - - -
CLOSING BALANCE AT 30 SEPTEMBER 2023 216 11,496 (1,525) 1,055 (932) 5,676 (3) 15,983 4 15,987
(1) Total equity attributable to the equity holders of the Parent
(2) 'Other reserves' combines the currency reserve and capital redemption
reserve. The movement in the current and prior year relates to the translation
of foreign currency equity balances and foreign currency non-monetary items.
1 BASIS OF PREPARATION
The consolidated interim financial information has been prepared using
accounting policies which are consistent with those applied at the prior year
end 30 September 2023 and that are expected to be adopted in the Group's full
financial statements for the year ending 30 September 2024. The financial
information in this interim report is in compliance with the recognition and
measurement principles of international accounting standards but does not
include all disclosures that would be required under IFRSs and are not IAS 34
compliant. The accounting policies have been applied consistently throughout
the Group for the purposes of preparation of this financial information. The
financial information for the half years ended 31 March 2024 and 31 March 2023
does not constitute statutory accounts within the meaning of Section 434(3) of
the Companies Act 2006 and is unaudited but has been reviewed by our auditors.
The comparative financial information for the year ended 30 September 2023
included within this report does not constitute the full statutory accounts
for that period. The statutory Annual Report and Financial Statements for 2023
have been filed with the Registrar of Companies. The Independent Auditor's
Report on that Annual Report and Financial Statements for 2023 was
unqualified, did not draw attention to any matters by way of emphasis, and did
not contain a statement under 498(2) or 498(3) of the Companies Act 2006.
The Financial Statements have been prepared on a going concern basis. In
reaching their assessment, the Directors have considered a period extending at
least twelve months from the date of approval of this financial report.
The Directors have prepared cash flow forecasts covering a period of more than
12 months from the date of releasing these financial statements. This
assessment has included consideration of the forecast performance of the
business for the foreseeable future taking in to account the potential cost of
the proposed initial share buyback programme and the cash and financing
facilities available to the Group. At 31 March 2024 the Group had cash
reserves of £3.6m. Cash decreased by £2.3m from that reported at 30
September 2023 mainly due to dividend and tax payments and the timing of the
planned cessation of a JV agreement in Canada and the Middle East.
The Directors have also prepared a stress case scenario that demonstrates the
Group's ability to continue as a going concern even with a significant drop in
revenues and limited mitigating cost reduction to re-align with the revenue
drop.
Based on the cash flow forecasts prepared including appropriate stress
testing, the Directors are confident that any funding needs required by the
business will be sufficiently covered by the existing cash reserves. As such
these Financial Statements have been prepared on a going concern basis.
2 TAXATION
The tax charge for the half-year ended 31 March 2024 is based on the estimated
tax rates in the jurisdictions in which the Group operates, for the year
ending 30 September 2024.
3 DIVIDEND
In view of the medium-term prospects for the Group along with the strong
balance sheet position, the Board recommends the payment of an interim
dividend of 0.75p per share for 2024 (2023: 0.75p per share).
During the period, the Group paid an interim dividend for 2024 of 0.75p per
share (2023: 0.75p per share) and approved a final dividend for 2023 of 0.75p
per share which was paid in April 2024.
4 POST BALANCE SHEET EVENT
There have been no significant events requiring disclosure since 31 March
2024.
5 SUMMARY SEGMENTAL ANALYSIS
REPORTABLE SEGMENTS
For management purposes, the Group is organised into three operating
divisions: Europe & Americas (EuAm), Middle East (ME) and Asia Pacific
(APAC). These divisions are the basis on which the Group is structured and
managed, based on its geographic structure. The following key service
provisions are provided across all three operating divisions: quantity
surveying, planning / programming, quantum and planning experts, dispute
avoidance / resolution, litigation support, contract administration and
commercial advice / management. Segment information about these reportable
segments is presented below.
Six months ended 31 March 2024 (Unaudited) Europe & Americas Middle East Asia Pacific Eliminations Unallocated Continued
£000
£000
£000
£000
£000
£000
Discontinued
£000
Total external revenue 18,467 2,247 1,760 - - 22,474 -
Total inter-segment revenue 453 452 207 (1,112) - - -
Total revenue 18,920 2,699 1,967 (1,112) - 22,474 -
Segmental profit/(loss) (2) 2,346 138 99 - - 2,583 (103)
Unallocated corporate expenses (1)(2) - - - - (2,051) (2,051) -
Share-based payment charge - - - - (49) (49) -
Operating profit/(loss) 2,346 138 99 - (2,100) 483 (103)
Finance income - - - - 37 37 -
Finance expense - - - - (7) (7) -
Profit/(loss) before taxation 2,346 138 99 - (2,070) 513 (103)
Taxation - - - - (107) (107) -
Profit/(loss) for the period 2,346 138 99 - (2,177) 406 (103)
(1) Unallocated costs represent Directors' remuneration, administration staff,
corporate head office costs and expenses associated with AIM.
(2) Unallocated corporate expenses are stated before the central recharge
Six months ended 31 March 2023 (Unaudited) Europe & Americas Middle East Asia Pacific Eliminations Unallocated Continued
£000
£000
£000
£000
£000
£000
Discontinued
Total external revenue 19,128 2,185 1,417 - - 22,730 1,489
Total inter-segment revenue 760 237 318 (1,315) - - -
Total revenue 19,888 2,422 1,735 (1,315) - 22,730 1,1489
Segmental profit/(loss) (2) 2,939 (78) (138) - - 2,723 (20)
Unallocated corporate expenses (1)(2) - - - - (1,971) (1,971) -
Share-based payment charge - - - - (202) (202) -
Operating profit/(loss) 2,939 (78) (138) - (2,173) 550 (20)
Finance income - - - - 32 32 -
Finance expense - - - - (54) (54) -
Profit/(loss) before taxation 2,939 (78) (138) - (2,195) 528 (20)
Taxation - - - - (207) (207) -
Profit/(loss) for the period 2,939 (78) (138) - (2,402) 321 (20)
(1) Unallocated costs represent Directors' remuneration, administration
staff, corporate head office costs and expenses associated with AIM.
(2) Unallocated corporate expenses are stated before the central recharge
Year ended 30 September 2023 (Audited) Europe & Americas Middle East Asia Pacific Eliminations Unallocated Continued
£000
£000
£000
£000
£000
£000
Discontinued
£000
Total external revenue 35,574 4,220 2,927 (88) - 42,633 1,893
Total inter-segment revenue 998 388 473 (1,859) - - -
Total revenue 36,572 4,608 3,400 (1,947) - 42,633 1,893
Segmental profit/(loss) pre central cost charge 5,285 (88) (239) - (3,685) 1,273 (325)
Central cost charge (3,057) (288) (204) 3685 136 (136)
Segmental profit/(loss) 2,228 (376) (443) - - 1,409 (461)
Unallocated corporate expenses ((1)) - - - - (411) (411) -
Share-based payments charge and associated costs - - - - (370) (370) -
Exceptional costs (76) (179) - - - (255) -
Operating profit/(loss) 2,152 (555) (443) - (781) 373 (461)
Finance income - - - - 129 129 -
Finance expense - - - - (63) (63) -
Profit/(loss) before taxation 2,152 (555) (443) - (715) 439 (461)
Taxation - - - - (314) (314) -
Profit/(loss) for the period 2,152 (555) (443) - (1,029) 125 (461)
(1) Unallocated costs represent Directors' remuneration, administration staff,
corporate head office costs and expenses associated with AIM.
6 EARNINGS PER SHARE
6 months ended 6 months ended Year ended
31 March 2024 31 March 2023 30 September
£000 £000 2023
Unaudited Unaudited £000
Audited
Profit/(loss) for the financial period attributable to equity shareholders 303 301 (336)
Non-recurring operational costs - - 255
Share-based payments cost and associated costs 49 202 370
Loss from discontinued operations 103 20 461
Underlying* profit/(loss) for the financial period 455 523 750
Weighted average number of shares:
- Ordinary shares in issue 53,962,868 53,962,868 53,962,868
- Shares held by EBT (3,677) (3,677) (3,677)
- Treasury shares (1,352,140) (1,642,543) (1,520,488)
Basic weighted average number of shares 52,607,051 52,316,648 52,438,703
Effect of employee share options 1,506,011 1,618,097 1,625,179
Diluted weighted average number of shares 54,113,062 53,934,745 54,063,882
Basic earnings/(loss) per share attributable to equity shareholders of the 0.6p 0.6p (0.6)p
Parent (pence)
Diluted earnings/(loss) per share attributable to equity shareholders of the 0.6p 0.6p (0.6)p
Parent (pence)
Underlying* basic earnings per share attributable to equity shareholders of 0.9p 1.0p 1.4p
the parent (pence) from continuing operations
Basic earnings per share attributable to equity shareholders of the parent 0.8p 0.6p 0.2p
(pence) from continuing operations
Diluted earnings per share attributable to equity shareholders of the parent 0.8p 0.6p 0.2p
(pence) from continuing operations
*Underlying figures are stated before the share-based payment costs and
non-recurring operational costs (this is not a GAAP measure)
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