Driver shares crash as client conversion stalls

11th Mar 2019 09:11

(Sharecast News) - Professional services consultant Driver Group continued to make "good progress" towards its strategic objectives but a reduced pace of client conversion has left it with lower profits.Driver warned that a slowing in the speed of client conversion, particularly in the Middle East and South-east Asian markets, had dragged its figures below expectations in the first half of its trading year.The AIM-listed group told investors on Monday that the shortfall was unlikely to be recovered in the second half and, as a result, it now anticipates full-year pre-tax profits to be "slightly below the 2017/18 result" at approximately £3.5m.On the other hand, Driver said its new business enquiry pipeline was at a "historically high level" and approximately 20% higher year-on-year.Chief executive Gordon Wilkinson said: "It is frustrating to report that a number of Expert Witness/Dispute projects that were expected to convert in H1 2018-19 have been temporarily delayed or deferred, particularly as our new business pipeline is at historically high levels.There are significant opportunities for Driver Group in the second half of the financial year, and I am confident that we will make good progress in converting these leads, based on our proven track record of prudent business planning and management, our exceptional team of professional services experts, and our specialist understanding of sectors, markets and issues."As of 1000 GMT, Driver shares had crashed 23.26% to 51.80p.