Hyder Consulting PLC, the multi-national design and engineering consultancy, today issues its Interim Management Statement covering the period 1 October 2013 to date.

Trading performance

The Group's results for the financial year are expected to be materially below current market expectations due to delays in new contract awards in Australia following the election, and project delays in the Middle East.

The policy of the new Australian government to give priority to infrastructure has led to a strong pipeline of large projects. Our bidding activity has been high, but the process is proving more protracted and new contract awards have been slower than originally anticipated. This, together with the weakening of the Australian dollar against sterling by 25% over the year, has affected reported profits and results in the second half. In China our business remains profitable.

In the Middle East our order book has grown further. We have benefited from the award of the new contracts, but project delays have meant that the levels of profitability will not be as high as we were expecting and will affect current year results.

In the UK results are ahead of both the prior year and plan. The rail business has performed strongly, and we have recently secured a number of frameworks with Network Rail where fees are expected to be more than £25m over the next 5 years. In Germany we anticipate a small loss in the second half and that goodwill on acquisitions prior to 2008 of approximately £6m will be written off as a non-cash exceptional item in the year end results.

The effective tax rate on adjusted profits is expected to reduce to c.19% for the year following changes in the regional split of profits across the Group.

The Group order book at 31 January 2014 is in line with the 30 September 2013 level.

Financial position

In the Middle East higher working capital balances have resulted from the project delays referred to above. The Group remains in a strong financial position and our intentions in relation to the final dividend are unchanged.

Outlook

The trading performance in the UK is encouraging, and the level of bidding activity and opportunities in Australia and the Middle East are good. Our strong order book and positioning leave the Group well placed to take advantage of future growth opportunities over the years ahead.

Enquiries:


Hyder Consulting PLC
Russell Down, Group Finance Director
Tel: 020 3014 9000

Citigate Dewe Rogerson
Ginny Pulbrook
Tel: 020 7282 2945

Notes:

1.  About Hyder Consulting : Hyder Consulting is a multi-national design and engineering consultancy operating in Asia, Australia, the Middle East, Germany and the UK. We employ approximately 4,000 people and apply our global expertise coupled with local knowledge to create award winning solutions for the transport, property, utilities and environment sectors.

2.  This announcement is based on information obtained from unaudited management accounts.

3.  This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of Hyder Consulting PLC. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those indicated by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

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