Hyder Consulting PLC : Pre-close update

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27/09/2013

Pre-close update

Hyder Consulting PLC, the multi-national design and engineering consultancy, provides an update in advance of its results for the half year to 30 September 2013, which will be announced on 20 November 2013.

H1 trading performance

The Group performed in line with our expectations and the order book grew again during the period. Headcount has grown since the year end, and the proportion of staff in global excellence centres continues to increase.

In Asia Pacific, Australian results were in line with plan in local currency but the c.15% weakening in the Australian dollar since April will affect reported profits for the year. The Australian business remains a strong contributor and there has been a step up in bidding activity due to increased infrastructure funding following the general election. In China, the new management team is making progress with key clients and we expect the business to be profitable in the first half.

As expected, Middle East results were well ahead of the prior year, benefiting from mobilisation on new public sector projects in Qatar and contract awards in the UAE property sector.  We are very pleased to announce that we have recently been awarded a further package of work by Ashghal on the Doha Expressway programme, amounting to c.£40 million over the next 5 years. We continue to pursue a number of other opportunities in the Middle East.

In the UK results were well ahead of the prior year and ahead of plan, the transport business performing well in the first half. In Germany protracted negotiations on contract variations and lower workload have affected results and we expect to incur a loss of c.£1 million in the first half; we anticipate the business returning to profitability in the second half.

Acquisitions

On 7 September 2013 the Group acquired PLD Consulting Pty Ltd, specialists in the design of high voltage overhead and underground transmission and distribution lines, for a maximum consideration of £2.2 million in cash, dependent on future business performance over the next two years. With headquarters in Queensland this builds on Hyder's growing expertise in the energy sector and follows on from the acquisition of ESR Technology in 2011 and Power Systems Project and Consultancy Services in 2012. These enterprises, along with BCH acquired earlier this year, have integrated well and performed in line with plan during the first half.

Financial position

The Group remains in a strong financial position and is well placed to take advantage of growth opportunities. As previously reported we expect period end net cash balances to be lower than those at the year end. This is due primarily to higher working capital balances in the Middle East, seasonal factors, EBT share purchases and payment of acquisition consideration.

Outlook

The trading performance in the UK and Middle East is encouraging, and the level of bidding activity and prospects in Australia have increased since the election. Results for the current year will be affected by the Australian dollar exchange rate but our strengthening market position there, and in each of our international territories, is evidenced by further growth in the order book. This gives us confidence in our future prospects.

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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