Buy into Driver’s (DRV:AIM) share price momentum. The contractual dispute specialist reckons it can lift profit margins by up to six hundred basis points (6%) at Trett, a loss-making rival business acquired in May which now accounts for nearly a third of its revenue on an annualised basis, to match that of its own operations.

Driver also sees opportunities to develop its presence in the US oil and gas market where project services margins are higher than other industries.

The £20 million cap has risen five-fold since February 2011 as a recovery trade. The group was hit by a downturn in construction activity in 2009. Management responded with a fierce cost-cutting exercise and a move to diversify into broader markets, with a particularly focus on energy industries. Driver swung back into profit in 2011.

A year ago, analysts forecast £1.1 million pre-tax profit for 2012; last week (12 Dec) it delivered £1.8 million pre-tax profit. This result was almost entirely down to the non-Trett operations, even though it is worth noting Driver had brought Trett into profit by the end of the reporting period.

Shares says: Buy Driver at 74.5p.