Shares in a global construction consultancy business have plunged after it issued a profit warning, revealed plans to close loss-making operations, cut jobs and that its chief financial officer had resigned.
Rossendale-headquartered Driver Group branded the three months to the end of March a "difficult second quarter" with its results "impacted by a combination of a problematic loss-making contract in the APAC region and an unexpected drop in revenues in the Middle East region".
The group added its pre-tax profits for the first half of its financial year are expected to be between £300,000 and £500,000, compared to the £1m it achieved during the same period in 2021.
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In a statement issued to the London Stock Exchange, the group said: "The board recognises that despite the actions previously taken, this statement provides further evidence of loss-making and inconsistent performance within the Middle East and APAC regions.
"Given the historic underperformance of these regions, the board instructed an operational review of both regions, with independent external support, and has identified a near term opportunity to reduce annual operating costs by in excess of £1m through a reconfiguration of the group's operating footprint in both regions, including the closure of marginal locations.
"In addition, this reconfiguration and associated reduction in headcount is expected to result in higher utilisation allowing management to be more selective of its future client base.
"Implementation of the key findings of the review will commence immediately and is expected to support a significant improvement in profitability in the second half."
The group also confirmed that its chief financial officer, David Kilgour, had tendered his resignation and will "leave to pursue other ventures".
After the statement was issued, shares in the group slumped by almost 30% by 10am.
