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 the Group. 

Not only has the transfer elegantly solved several problems, but it has also de-risked the Middle Eastern region for Driver Group. The receipt of £2m as of 1 June results in net cash of c.£5.3m, ahead of normal operational requirements. On this basis, Management has considered a return of cash to investors – which we believe could come in the form of either a special dividend or a share buy-back programme.