Diales has confirmed that it has achieved continuing adj. PBT estimates of at least £1.3m, representing an uplift of 8% on FY24. Notwithstanding external cost pressures within Driver Project Services, affecting gross margins, Group EBIT margins rose to 3.0% (FY24: 2.8%). Utilisation rates were broadly unchanged H2/H1 as demonstrated by the margins, with the Group’s real-time management information system rolled out beyond Europe.
Revenues declined modestly (-0.9% to £42.6m), attributed to a slow Q1 and a challenging environment. However, momentum recovered in Q2, continuing into Q3 with a notable yoy recovery in the Middle East and a robust performance in EuAm. The APAC region remains weak, led by a challenging planning environment in Australia. Several new experts were hired during the year, with their full-year contribution to benefit FY26.
Net cash improved by 15% in H2, ending the year at £3.0m, with the final payments from creditors of the closed US business received following the period end. The cash represents a significant proportion of the market cap and offers management flexibility in the areas of capital allocation and investment in future growth.
The outlook remains optimistic, underpinned by the full-year impact of expert hires, a strong business pipeline, and ongoing efficiency improvements via the new digital systems and following the rightsizing of the APAC business in H2 25.
Our FY26 estimates suggest that the Group is trading on 4.2x EBIT multiple, ex-cash. Additionally, our fair value/ share of 35p, which is based on peer group comparison models, stands at more than twice the current share price. The dividend of 1.5p/ share, which is backed by the £3m of net cash, represents a yield of 8.8%.
