Driver Group plc Results for the year to 3 0 Septem ber 2 0 1 9 - PowerPoint PPT Presentation

Driver Group plc Driver Group plc Results for the year to 3 0 Septem ber 2 0 1 9

Driver Group plc 2 Business Profile Driver is a global dispute resolution provider to a blue chip client base Driver Trett & Project Services • Driver Trett provides specialist dispute avoidance and dispute resolution services to our clients from the outset of a project to its completion, and beyond. • We offer strategic commercial improvement and contract management services; live planning and programming; assistance and forensic delay analysis; dispute avoidance and dispute resolution support and expertise; and training and seminars tailored to our clients’ needs. • Driver Project Services provides site-based commercial management, project management and planning and programming services to our clients in the UK and Middle East. Our staff work seamlessly with our clients’ teams, offering additional project support at the point of need or for the duration of the project.

Driver Group plc 3 Business Profile Prem ium branded service (shares Driver Trett resource) Diales • Expert Witness and expert advisory services provider. • Our world-class quantum, delay, and technical experts assist in litigation, arbitration, and adjudication, as well as in negotiation, mediation, and other dispute resolution forums. • Diales also provides highly experienced adjudicators, arbitrators, and mediators, as well as offering third party neutral evaluation and determination. • The number of experts has increased from 13 when the brand was launched in 2012 to 43 in 2019 with all experts having a minimum of 15 years’ industry experience and 50% of their workload is expert work. • Diales accounts for 22% of Group Revenue for the period at £12.6m.

Driver Group plc 4 Global Footprint 2 0 1 9 REVEN UE REGI ON AL BREAKD OW N EuAm ME APAC APAC 1 5 % EuAm £ 5 8 .5 m 5 1 % ME 3 4 %

Driver Group plc 5 Sectors & Services 2 0 1 9 REVEN UE Diales 2 2 % Project Services 1 0 % £ 5 8 .5 m Driver Trett 6 8 % 2 0 1 8 REVEN UE Diales 2 3 % £ 6 2 .6 m Project Services 9 % Driver Trett 6 8 %

Driver Group plc 6 Revenue by Sector Sector Split 2 0 1 8 Sector Split 2 0 1 9 Process, Process, Other, 0 .2 % Other, 0 .6 % 3 .6 % Oil & Gas, 2 .8 % Oil & Gas, 1 0 .1 % 1 2 .5 % Building, Mining, 3 2 .0 % Building, 3 .1 % Mining, 3 5 .4 % 3 .4 % Marine, Marine, 2 .3 % 2 .5 % £ 6 2 .6 m £ 5 8 .5 m I nfrastructure, Energy, I nfrastructure, Energy, 2 6 .4 % 2 0 .2 % 2 7 .5 % 1 7 .4 %

Driver Group plc 7 Segm ental revenue split by period 2 0 1 8 REVEN UE 2 0 1 9 REVEN UE APAC, £ 9 .1 m , APAC, £ 1 1 .0 m , 1 5 % 1 7 % EuAm , £ 2 8 .7 m , 4 6 % EuAm ME £ 6 2 .6 m £ 5 8 .5 m APAC EuAm , £ 2 9 .8 m , 5 1 % ME, £ 1 9 .6 m ME, £ 2 2 .9 m , 3 7 % 3 4 %

Driver Group plc 8 Highlights – strong second half profits • Strong second half performance resulting in underlying* profit for the year of £3.0m (2018: £3.8m) • Another good year in EuAm with both profits and revenues increased (segmental profits up 32% and revenues up 3.5% ) • Slow down in both APAC and ME commissions and pipeline resulted in disappointing performance in these regions: • APAC revenue down 17% • ME revenue down 14% • Prompt actions taken to rationalise & reduce cost base in APAC and ME regions to reflect lower activity levels

Driver Group plc 9 Highlights – strong second half profits ( cont.) • Resultant Group breakeven revenues lowered by 10% • Good second half momentum of 2019 carried forward into the beginning of the new financial year • Opened small office in Riyadh to continue development of KSA market • Share buy-back programme of £1.0m completed • Dividends paid in April 2019 and October 2019 • Strong cash position at year end • Level of business enquiries have increased year on year

Driver Group plc 1 0 Regional Highlights • Fee earner headcount reduced by 29 to 349 since September 2018 with reductions coming from the Middle East (ME) and Asia Pacific (APAC) regions. Global utilisation rates down 3.2% points to 76.8% compared to September 2018 • Europe & Americas (EuAm) reported underlying* profit for the period of £3.9m, up from £3.0m with utilisation rates at 72.4% (73% ) • Middle East (ME) reported underlying* profit for the period of £1.4m, down from £2.1m with utilisation rates at 81.2% (84% ) • Asia Pacific (APAC) reported an underlying* loss for the period of £0.4m, down from £1.0m profit with utilisation rates at 75.8% (83% ) * Underlying profit stated before the share based payment costs

Driver Group plc 1 1 Business review - Europe & Am ericas Operational Financial • • Revenue up 3.5% vs 2018 to £29.8m Good performance across the whole of the UK market for both claims and • Segmental profit £3.9m vs 2018 £3.0m project services with strong • Headcount 197 vs 2018 192 profitability and revenue • • Utilisation 72.4% vs 2018 73% Revenue from Diales technical brand in UK increased by 29% to £4.23m compared to 2018 £ 2 9 .8 m £28.75m • Mainland Europe delivered a strong performance with profit increasing to £801k (2018: £492k). Germany 1 9 7 192 revenues up 35% • Good growth in profits for Canada • Further recruitment of Diales experts in line with Group strategy 7 2 .4 % 73% £ 3 .9 m £2.97m Revenue Profit Headcount Utilisation 2019 2018

Driver Group plc 1 2 Business review - Middle East Operational Financial • • Revenue down 14.3% vs 2018 to £19.6m UAE revenue and result down due to difficult market conditions with • Segmental profit £1.4m vs 2018 £2.1m headcount reduced to reflect lower • Headcount 128 vs 2018 151 revenues • Utilisation 81.2% vs 2018 84% • Leadership changes in the Kuwait business have impacted revenues and profitability £22.91 • Decisive action taken in H1 to lower cost base and ensure sustainable £ 1 9 .6 5 m performance across the region 151 • Oman & Qatar delivered strong 1 2 8 performances. In Oman greater focus on private sector, reducing trading risk 84.0% 8 1 .2 % and improving cash generation £2.1m £ 1 .4 m Revenue Profit Headcount Utilisation 2019 2018

Driver Group plc 1 3 Business review - Asia Pacific Financial Operational • Revenue down 17.2% vs 2018 to £9.1m • Singapore and Malaysia revenues impacted due to the completion of • Segmental loss £0.4 m vs 2018 £1m profit major commissions and delays in the • Headcount 81 vs 2018 91 start of new commissions • Utilisation 75.8% vs 2018 83% • APAC Regional MD removed incurring one-off £0.2m costs in year • £10.96m Headcount re-aligned to match reduced revenues 91 £ 9 .0 7 m 83% • 8 1 Improved performance since the 7 5 .8 % start of March continuing into the start of 2019/ 20 £0.95m Revenue Profit Headcount Utilisation ( £ 0 .4 m ) 2019 2018

1 4 Financial review Driver Group plc

Driver Group plc 1 5 Financial highlights Profit before tax £3.245m • £2.739m Revenue down by 6.6% to £58.5m ( 2018: £62.6m) £1.233m • Gross profit margin of 24% (2018: 26% ) at £13.9m (2018: £16.3m) 2017 2018 2019 • Underlying* profit of £3.0m (2018: £3.8m) resulting in Underlying* Profit an underlying* profit margin of 5.1% (2018: 6.1% ) £3.839m • £3.00m Profit before tax for the year up 18.5% to £3.2m (2018: £2.486m £2.7m) • Basic earnings per share up 30% at 5.2p per share 2017 2018 2019 (2018: 4.0p per share) Basic EPS • Net cash at 30 September 2019 of £5.4m (September 5.2p 4.0p 2018: £6.9m) 0.7p *Underlying profit stated before the share based payment costs and exceptional items 2017 2018 2019 ** Each of the above graphs are scaled individually and are not directly comparable

Driver Group plc 1 6 Financials - I ncom e Statem ent 3 0 Sep 1 9 3 0 Sep 1 8 £ '0 0 0 £ '0 0 0 REVENUE 58,486 62,615 COST OF SALES (net of impairment movement) (44,549) (46,338) GROSS PROFI T 13,937 16,277 GROSS PROFI T % 23.8% 26.0% Underlying* profit before tax 3,002 3,839 5.1% 6.1% Share based paym ent credit/ ( charge) and associated costs 243 (1,100) Profit before tax 3,245 2,739 Tax charge (497) (567) Reported profit after tax 2,748 2,172 Basic earnings per share 5.2p 4.0p * before share based payment costs

Driver Group plc * before share-based payment costs bridge Profit Underlying* profit 2018 ‐ £3.8m Revenue down ‐ £4.1m Underlying* profit Costs of sales saving ‐ £1.4m Impairment movement ‐ £0.4m Admin cost saving ‐ £1.4m Other ‐ £0.1m Underlying* profit 2019 ‐ £3.0m 1 7

Driver Group plc Cashflow bridge Net cash at Sep 18 ‐ £6.9m Cashflow from operations ‐ £3.4m Capex ‐ £0.3m Tax paid ‐ £0.6m Cashflow Purchase of treasury shares ‐ £1m Dividend ‐ £0.3m Net interest paid ‐ £0.1m Working capital movement ‐ £2.6m Net cash at Sep 19 ‐ £5.4m 1 8