Investors looking for stocks that may be placed for a continued upward move coupled with sound fundamentals could perhaps do worse than take a look at Driver Group.

Although the initial description of this AIM-listed business may not appear to suggest much if any growth opportunities, a closer look would seem to suggest otherwise.

Often described as a company focused on providing services addressing commercial disputes along with delivering resolutions serving the construction sector, many share watchers would perhaps understandably pass this one by.

However, there is a fair bit more going on here that that and the company’s undoubted progress certainly has not been lost on me.

Despite the shares being somewhat higher than the twelve month low of 79p, the current £1.21p could well offer further upside over the next year and beyond to the medium or longer term.

Revenue and profits have been growing at the company which has seen sales lifted from the £16m four years back, to last years £37.2m.

Equally, losses in 2010, have been transformed into profits, with £2.5m recorded last year.

With what would seem to be vast experience and expertise on legal issues surrounding the construction industry, the company within its Diales arm, provides assistance relating to litigation resulting from contractual delays, technical issues, backed up with mediation services.

That may appear to be something of a niche business, but it effectively fits in well with the company’s other offerings, which are enjoying strong growth. These include overall project management and monitoring, corporate finance, restructuring and insolvency services along with project banking, the last of which ensures adequate or recognized payment measures put in place for contractors.

Each segment within the business is wide and varied with a global reach, where some three hundred staff are now employed, serving growing areas of industry.

This now sees the company which has been around since the 1970’s extending its field beyond traditional buildings and the like into Energy, serving oil and gas along with marine, mining and Industrial transportation. These are all areas where there are strict controls and regulations in place giving rise to best practice and guidance, which creates opportunity’s for driver’s services.

The company delivered its preliminary results for the year ending September 2103 back in December and they made for pleasant reading for holders. Not only was it a record year for both revenue and profits there were notable performances from the likes of Africa and the Middle East, while new offices were opened in Australia, Germany, Hong Kong and closer to home Aberdeen.

Although traditionally focused on the UK, overseas sales are ramping up the numbers and 62% of business is now derived from outside of the UK. The company is now demonstrating the ability to generate cash from its operations and has also bedded in its 2012 acquisition in the form of Trett a complimentary business which was snapped up for £3m two years back and paid for out of the company’s own financial resources.

And that is perhaps something that could be on the agenda again as the company has the ability to add another bolt-on buy, following on from a previous purchase completed back in September of last year, although organic growth would seem to be an ongoing focus.

The balance sheet here looks in reasonable shape too with a net cash position of just over £1m against a previous net debt figure of £0.96m.

The dividend has also been increased at Driver and although only yielding 1.5% based on forecasts for this year, it is worth noting that this should be covered a healthy five times earnings perhaps giving scope for a future acceleration.

Broker Charles Stanley is anticipating pre-tax profits this year of £3.2m and EPS of 8.7p rising to £4m next year and EPS of 11.3p.

Given that the board here has already stressed a high level of confidence for the remainder of the current financial year and given its broad spread and growing list of blue chip clients then Driver looks worthy of keeping a close eye on.

If it can continue in the same vein the shares stand on a forward PER of 13 falling to 10, which appears decent for a growing company.

ISIS is the major holder here, while Artemis and Hargreave Hale have both seemingly increased their holdings of late.

Forthcoming event

Amati Global Investors, based in Edinburgh, are holding an Investors showcase on March 7 at 10am at Clare College here in the city.

With both Ubisense and Frontier Developments presenting, it promises to be an interesting event.

Andy Hopper, chairman of Ubisense and head of the University of Cambridge Computer Laboratory, will be in attendance along with Richard Green CEO of the company.

David Braben the founder and CEO of Frontier will be providing a preview of Elite Dangerous along with background to the company.

I will of course be in attendance to cover this one and anyone else interested who may wish to attend, can e-mail me at infoprivatepunter@gmail.com.

There are a still a few places left on this one for any holders or those interested in either company’s or finding out more of Amati’s Investment philosophy.