Companies: HYC   

Engineering design and management consultancy Hyder turned in yet another good set of numbers for the half to September. On 27% top-line growth to £80.9m, pre-tax profits powered ahead 120% to £2.6m and earnings were lifted 98% to 7.25p. Furthermore the half-time order book stood at £218m, 18% up from a year-end £185m.

Chief executive Tim Wade flagged up the robust nature of the group’s major markets and said the 2012 Olympics in London should boost the South-East engineering consulting sector over the next few years. Wade says Hyder continues to drive up margins by boosting the volume of fees put through Hyder’s fixed cost base and investing in higher-margin work in design and advisory services.

During the half, Hyder acquired Queensland-based property and leisure consultancy Weathered Howe. October saw Hyder complete two further Australian acquisitions covering environmental services and transport planning.

Regionally, there was a rise in operating profits from £1.6m to £2.5m in the UK/Europe, Germany proved disappointing ahead of the election and property sector strength drove Middle East turnover north from £10.7m to £15.9m. Revenues in Asia Pacific, where Hong Kong made a small loss, rose strongly from £14.5m to £20.4m thanks to bumper growth in Australia, with operating profits perking up from £700,000 to £1.3m.

For the year, analysts predict profits of £6.3m and earnings of 17.9p, placing Hyder Consulting on an undemanding forward p/e of 15. Buy.

Hyder Consulting	LSE	£65.5m	173.50p	-1.50p
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