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 year. Cash generation remained positive, with net cash amounting to over 30% of the market cap and NAV.

Despite the ongoing suspended estimates, the Group is on the path to recovery from FY22. We think the discount to the forward price/book ratio of its peers is too high, particularly in view of the cash.