Companies: HYC ��

Hyder Consulting, the engineering design consultant growing organically and through select acquisitions, has cheered investors with strong half-time figures to September.

Coming in well ahead of the previous year, turnover grew by almost 40% to �151.6m, with an encouraging 65% secured overseas, sending operating profits up by a third to �8.9m.

Earnings rose by 18% to 17.43p, underpinning a 50% dividend hike to 1.35p. Following a strong cash performance, net debt was reduced by �2.4m, from �11.1m at the March year-end, to �8.7m.

Interim highlights from Hyder, active in sectors ranging from water and transport to government-funded public infrastructure, included 80% revenue growth to �43.7m and a 77% profits surge to �3.5m in the Middle East, as well as a 46% profits push to �2.5m in Asia-Pacific. A slight dip in operating margins, from 7.3% to 7%, reflected tighter UK margins, although margins were maintained in the Middle East and Asia-Pacific and improved significantly in Germany, where the benefits of recent acquisitions were felt.

Buffered by its international spread of business, strong balance sheet and buoyant order book – which grew by 10% over the half to �346m and of which two-thirds falls outside the UK – Hyder remains a solid long-term investment for tougher economic times.

Moreover, based on forecasts for March 2009 – a rise in pre-tax profits from �14.4m to �16.7m, earnings of 39p (2008: 33.4p) and a likely 4.5p dividend – its fallen shares are trading on only 4.4 times forward earnings, while offering a 3% yield. Strong buy.

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