RNS Number:3895E
Hyder Consulting PLC
12 June 2006
Hyder Consulting PLC (HYC.L)
Results for the year ended 31 March 2006
Hyder Consulting PLC is an engineering design, planning, environmental and
management consultancy operating in the UK, Europe, Middle East, and Asia
Pacific regions. We work with and advise national and regional government
agencies and private sector commercial enterprises, undertaking increasingly
sophisticated infrastructure and property projects.
Financial and Operational Highlights
* Revenue for the year up 26% to #171.3m
* Operating profit for the year up 109% to #9.8m
* Adjusted profit before tax up 169% to #7.0m
* Sales order book up 30% to #240m
* Successful integration of infill acquisitions
* Directors confident of further progress in the year ahead
#m 2006 2005 % Growth
Revenue 171.3 136.2 26
Operating profit 9.8 4.7 109
Adjusted operating profit 8.4 4.7 79
Profit before tax 8.3 2.6 219
Adjusted profit before tax 7.0 2.6 169
Earnings per share 21.44p 8.14p 163
Adjusted earnings per share 19.28p 8.01p 141
Adjusted results are presented before amortisation of business combinations,
negative goodwill, Singapore office closure costs, pension scheme settlements
and associated costs as the Directors believe that this assists with
understanding the underlying performance of the Group. A reconciliation between
statutory and adjusted results is set out in Note 4.
Sir Alan Thomas, Chairman of Hyder Consulting PLC, commented:
"I am pleased to report an excellent year for the Group. We have improved our
profit margin whilst continuing to build the order book. The results are
markedly ahead of last year and ahead of market expectations. With the strength
and visibility of our order backlog, we are confident of further progress in the
year ahead."
Press contacts:
Hyder Consulting PLC
Tim Wade, Chief Executive Tel: +44 (0)20 7904 9011
Simon Hamilton-Eddy, Financial Director Tel: +44 (0)20 7904 9011
Biddicks
Shane Dolan Tel: +44 (0)20 7448 1000
Chairman's statement
I am pleased to report another excellent year with strongly improved results for
the Group. The results are significantly ahead of last year and ahead of market
expectations.
Results
These are our first full year results to be reported under International
Financial Reporting Standards (IFRS), and as a result the comparative numbers
for 2005 have been restated.
Our order book increased 30% to #240m (2005: #185m).
Revenue increased 26% to #171.3m (2005: #136.2m) mainly as a result of strong
growth across all regions, and an increased proportion of sub contracted work.
Our revenue, net of direct project costs, increased by 23% to #139.2m (2005:
#113.1m).
Operating profit increased by 109% to #9.8m (2005: #4.7m).
A gain of #2.3m has been recognised following the transfer of deferred members
out of the Acer Group Pension Scheme (AGPS). The tax charge includes an amount
of #0.7m in respect of tax related to this gain. Our three year programme to
wind up operations in Singapore was concluded in the year with costs amounting
to #0.2m (2005: #0.3m).
Profit before tax was #8.3m (2005: #2.6m) an increase of 219%. The total tax
charge amounts to 14.7% of profit before tax, although the tax on the adjusted
profit before tax is only 7.8%. We anticipate the tax charge will increase to a
more normalised rate of 20% over the next three to four years. The low rate
reflects adjustments in respect of prior periods, the utilisation of tax losses
in Australia, a tax refund in Germany, and zero tax rates in certain Middle East
jurisdictions.
As at 31 March 2006, net assets were #8.0m (2005: #6.8m). We have increased our
net cash at 31 March 2006 to #6.2m (2005: #4.5m), after cash payments of #4.0m
for acquisitions.
Dividends
The Directors are proposing a final dividend of 0.90p per share (2005: 0.55p)
which would give a full year dividend of 1.25p per share (2005: 0.75p), an
increase of 67%. The final dividend will be paid on 4 August 2006 to
shareholders on the register as at 7 July 2006.
Strategy
Our central objective has been to improve our profit margin whilst continuing to
build our order book and the key elements of our strategy have been:
* To give the highest priority to service quality.
* To increase the proportion of higher value-added advisory work.
* To build and develop long term relationships with our clients.
* To be staffed by people who are valued by clients, by the company and by
themselves.
These themes have been reflected in our acquisitions over the past year. We have
completed four acquisitions during the financial year and a further two have
been completed after the year end with total consideration payable, including
earn outs, of up to #11.7m. In Australia we acquired Weathered Howe a 90 person
consultancy in Queensland, environmental consultants Nolan-ITU and transport
consultants Irwinconsult in New South Wales. In the UK, we acquired land
development consultants Livic Limited, which traded as Bettridge Turner &
Partners. Since 31 March 2006 we have acquired environmental consultants,
Cresswell Associates, in the UK and Munnich Projekt, a specialist highways firm
in Germany.
We are pursuing further infill acquisitions in our existing territories and
market sectors. In particular we are seeking to build scale and achieve
'critical mass' in Germany, Hong Kong and China.
Pension Scheme
As a result of further reductions in the discount rate used to value
liabilities, the deficit in the AGPS as calculated under IAS19 has increased
slightly since the Interim Results to #32.1m net of deferred tax.
As reported in our Interim Results, a cash offer was made to deferred members to
take transfers out of the scheme. Approximately 20% of deferred members accepted
the Group's cash offer and are in the process of transferring out of the scheme,
which has resulted in a reduction in the deficit of #3.7m.
In order to reduce the deficit contributions into the AGPS were increased to
#2.5m per annum with effect from 1 January 2006.
A consultation exercise with active members is currently underway, also aimed at
reducing the deficit.
Current Trading
Overall, trading in the second half was ahead of market expectations.
UK / Europe
In the UK, our highways workload continues to grow and we have long term
framework agreements with important clients such as the Highways Agency and
Transport for London (TfL). We are also well placed to take advantage of the
strong transport market in Ireland, winning new projects there through our new
branch. In the second half of the year, work on our water framework contracts
began to build up, improving the performance in the water sector. The strength
and visibility of our order backlog provides a solid foundation for future
expansion.
Our business in Germany remained profitable despite tough market conditions,
though these are now showing some signs of improvement. The recent acquisition
of a small specialised, highways engineering firm should help us there.
Middle East
We have again performed strongly across the UAE, Qatar and Bahrain where the
property and infrastructure markets are buoyant as a result of high oil and gas
prices. We have increased our order backlog significantly during the year, which
gives us confidence for the region in the years ahead.
Asia Pacific
The market in Australia is strong, and particularly the infrastructure sector.
Our performance has been enhanced by recent acquisitions, including that of
Queensland based property and leisure consultants, Weathered Howe, during the
year.
In Hong Kong we expect to return to profit on a sustainable basis in the coming
year. We are increasing our investment in training and in strengthening our
skills base to help us grasp the growing opportunities in the region.
We are in the process of a search for two independent Non-Executive Directors to
join the Board. Peter Higgins, whose contribution to the Board's deliberations
has been greatly valued, has indicated his wish to retire once his replacement
has been appointed. I will be making a further announcement in due course.
Outlook
In summary, we are very pleased to report the progress we have made in improving
our adjusted operating margin (from 3.5% to 4.9%) and in further strengthening
our order backlog. The geographical spread and visibility of this backlog, along
with the contribution we expect from our new acquisitions, gives us confidence
that we shall make further strides in the coming year.
Finally, I would like to thank our clients for their trust in Hyder Consulting
and every member of our staff for his or her contribution to these results.
Sir Alan Thomas
Chairman
12 June 2006
Chief Executive's Review of operations
These results reflect further progress in developing our core engineering
services while realising our ambition to grow the management and advisory
services part of our business. Adjusted operating margin increased from 3.5%
last year to 4.9% this year.
Business has been particularly strong in the Middle East and Australia and there
has been further improvement in Hong Kong and China. The UK business achieved
its targets and recently completed two infill acquisitions that will increase
our presence and capability in growth areas. Germany continues to be a difficult
market but we have an efficient business there and are looking at further
potential acquisitions in order to increase our scale.
UK / Europe
Revenue increased to #93.1m (2005: #82.1m) and operating profit to #6.5m (2005:
#4.1m).
Our biggest project has been the preparatory work for the multi billion pound
Design Build Finance Operate (DBFO) scheme to widen 63 miles of the M25 Orbital
Motorway. As well as calling on our traditional highway engineering skills, we
are providing extensive input into the environmental and traffic management
technology aspects of the project. We also won another Early Contractor
Involvement (ECI) highways project, with the award of the #72m West Midlands
package in partnership with Morrison Construction. Later in the year we were
part of a three consultant consortium which was awarded framework contracts for
research and development and technical advisory services by the Highways Agency.
One of the biggest issues faced in the UK is land use. Ambitious targets for new
housing and infrastructure have to be balanced with environmental considerations
such as land remediation, habitat protection and flood risk. The award of the
2012 Olympics to London and the regeneration plans associated with the hosting
of that event will further increase demand in these disciplines.
We have been working with the public and private sector on planning and
development issues for some time, notably with private housing developers and in
helping local authorities to make strategic assessments of the environmental
effects of their local development plans. New awards during the year included
the preparation of the coastal tourism strategy for the Welsh coastline - some
1300km, including 495km of defined Heritage Coast.
The acquisition of Livic Limited, which traded as Bettridge Turner & Partners,
has strengthened our presence in land development. This 75 person practice has
built an excellent reputation for the planning and infrastructure skills
required to release sites for development and has a client base that includes
leading retailers and commercial developers.
We have grown our environmental team, doubling our staff numbers over the year,
which greatly helps us in the pre and early planning phases of projects. We have
reorganised our environmental, geotechnical and geoenvironmental teams into a
single, integrated Environmental Solutions team. Among a number of important
awards received during the year, was an environmental consultancy framework
contract with the Office of Government Commerce. Since 31 March 2006 we have
strengthened our resources and capability in this area with the acquisition of
the specialist ecological consultancy, Cresswell Associates (Environmental
Consultants) Limited.
Over the year, we have enhanced our position in the water sector with a number
of framework contracts related to the delivery of the AMP4 investment programme.
We were also appointed by Dwr Cymru Welsh Water to its Network Development
Consultancy framework for the next five years. Early in 2006, we secured a place
on the team appointed to manage over #120m of capital investment projects in a
Public Private Partnership scheme for water and wastewater upgrades in Northern
Ireland in conjunction with Thames Water.
After something of a lull, we have made progress in the UK rail sector and are
well placed to benefit from political support for investment in the network. New
commissions included the replacement and upgrade of two stations in the suburbs
of Liverpool.
Central Europe, particularly those countries joining the enlarged European
Union, is a major source of opportunities for new water projects. We won a
sizeable upgrading project in Latvia earlier in the year, and have the expertise
and local partners which give us confidence of further wins.
Our German business, Acerplan, which is based in eastern Germany, has also been
developing its business into other European markets. During the year, it
established a small branch office in Moscow. The largest contract remains the
supervision of Berlin's new central railway station and this has led to other
work within the rail sector. The recent acquisition of a small specialised,
highways engineering firm Munnich Projekt, should help us to increase our scale
in the region.
Middle East
Revenue increased to #35.4m (2005: #24.0m) whilst operating profits increased to
#1.8m (2005: #1.6m).
Continuing high oil and gas prices have fuelled unprecedented levels of
investment and our staff numbers in the region have increased significantly.
The scale and ambition of projects is increasing with Abu Dhabi also developing
its tourism potential. As part of the Sorouh development on Reem Island, we have
been appointed structural designer of the 75 storey First Shams Tower.
In Dubai, we have been appointed as infrastructure design consultant for two new
major mixed-use projects, City of Arabia in Dubailand and the Falcon City of
Wonders. Construction of the world's tallest building, Burj Dubai, for which we
are the supervising consultant, has been progressing at the rate of a floor per
week.
With one of the highest per capita Gross Domestic Products in the world, Qatar
is an expanding market and Hyder Consulting is one of the longest established
international consultancies in the country. Among new commissions received were
infrastructure design for Education City and the 35km2 Lusail Development, the
design of new and extended water treatment plants for the capital, Doha, and
tall building design projects including the 80 storey Dubai Tower.
In Bahrain, we have been appointed to design the upgrade of the North Manama
Causeway and have successfully transplanted our property sector experience from
elsewhere in the Middle East. We were appointed infrastructure consultant for Al
Areen, a mixed-use tourist and residential development which offers a blend of
relaxation and rejuvenation facilities connected by 30km of new roads.
Away from the mainly property-led projects, we have continued to grow our
presence in Kuwait and maintained a high level of involvement in public
infrastructure projects throughout the region. One of the growth areas has been
advising governments and public bodies on how to bring private sector investment
and expertise into the operation and management of utilities. We have current
projects of this nature in Abu Dhabi, Al Ain and Oman.
We are pleased with the integration of the Roberts and Partners International
MEP acquisition which has grown significantly since it was acquired and brings
benefits to our operations throughout the Middle East and beyond.
Other growth areas in which we have been investing by expanding our local teams
are environmental services, urban planning and facades. As well as contributing
to the projects already mentioned, these teams have also led on successes such
as the award of the Bateen Foreshore Masterplan in Abu Dhabi.
Asia Pacific
Revenue increased to #42.8m (2005: #30.2m) and operating profit to #2.4m (2005:
#1.3m).
Our Australian business performed extremely well and we have been able to expand
our client base by developing additional high value skill streams. Our
acquisition strategy has been an important part of this expansion.
In the first half of the year we acquired the 90 strong consultancy Weathered
Howe, both for its skill base and to give us a credible presence in Queensland.
In the second half we benefited from the purchases of the New South Wales
division of transport consultancy, Irwinconsult, and the sustainability
specialist, Nolan-ITU. All three have been quickly integrated.
Major projects started in the year included the verifier role for the Tugun
bypass and the concept design of the Ballina bypass. We are also involved in the
North South Rail Corridor study between Melbourne and Brisbane.
In Hong Kong and China, we have sought to build a sustainable sales pipeline.
Our presence in mainland China has been enhanced by two further successes in
bridge concept design competitions, one for a 200m span structure in Ningbo and
the other for a 192m span cable stayed river bridge in Tianjin.
Corporate overheads
Corporate overheads increased to #2.3m (2005: #2.2m), reflecting the additional
costs associated with the implementation of the Group strategy and the
appointment of a full-time Company Secretary during the year.
People
The quality of the services we provide depends upon the professionalism of our
people and how well we support and train them. At a time when demand for good
quality engineers and technical staff is very high and extremely competitive
across the world, I want to explain how Hyder Consulting is responding.
Our strategy puts people at its core - embodied in the strategy statement:
"To be staffed by people who are valued by clients, by the company and by
themselves."
We are implementing this strategy at all levels of the organisation. At senior
levels we have developed a set of core competencies for all our senior staff
against which they are evaluated. Of those, people management skills are
fundamental. In order to improve in this area, we are rolling out a blended
learning programme, combining e-learning and tutorials focusing on performance
management issues. We are also investing in recruitment and employee assessment
training.
The core competencies also provide the framework for development programmes for
younger staff that aspire to move into management and technical leader roles.
Individual career and training needs and preferences are addressed in regular
performance reviews.
For many of our staff, one of the attractions of working for an international
consultancy like Hyder Consulting is the opportunity to work outside their home
country. We have continued to encourage and support staff moves from region to
region. This does not just apply to more experienced employees. In the UK, for
example, we have an annual programme for graduates in which we offer six-month
overseas placements.
In order to measure progress against our strategy we have adopted a wider set of
key performance indicators related to our people. While these give us the
headline story, we are investigating the underlying trends in client review
meetings and our annual staff survey. Many of the initiatives mentioned above
have been introduced or modified as a direct result of the feedback received.
We are also investing considerable time and effort in ensuring that internal
communications are effective and two-way. Of the more than 2,000 employees who
responded to our last employee communications survey, 65% stated that
communications in Hyder Consulting had improved over the last year.
Once again I would like to thank all our employees for an outstanding job during
a continuing period of change for the business.
Tim Wade
Chief Executive
12 June 2006
Consolidated Income Statement for the year ended 31 March 2006
2006 2005
Note #'000 #'000
--- --------- ---------
Revenue 1(a) 171,314 136,233
Cost of sales
Direct project costs (32,101) (23,183)
Other operating costs (98,863) (82,731)
--------- ---------
Gross profit 40,350 30,319
--------- ---------
Administration expenses (30,584) (25,572)
--------- ---------
Group operating profit 1(b) 9,766 4,747
--------- ---------
Analysed as:
EBITA 9,333 5,529
Amortisation of intangible assets
- Software (953) (815)
- Business combinations (671) (179)
Negative goodwill - 530
Pension scheme settlements 2,299 -
Singapore office closure costs (242) (318)
--------- ---------
Group operating profit 1(b) 9,766 4,747
--------- ---------
Interest payable and similar charges (1,701) (2,233)
Interest receivable 274 79
--------- ---------
Profit before taxation 8,339 2,593
Taxation (1,230) (382)
--------- ---------
Profit for the financial year 7,109 2,211
========= =========
Profit attributable to minority interests 177 59
Profit attributable to equity shareholders 6,932 2,152
--------- ---------
Earnings per share (pence)
Basic 2 21.44 8.14
Diluted 2 20.97 7.99
------------------------- ------ --------- ---------
Equity - Ordinary 10p shares
Dividends (#'000) - paid 291 152
Dividend per share (pence) 0.90 0.60
------------------------- --------- ---------
Dividends (#'000) - proposed 294 178
Dividend per share (pence) 0.90 0.55
All activities are continuing.
Consolidated Statement of Recognised Income and Expense
2006 2005
#'000 #'000
--------- ---------
Profit for the year 7,109 2,211
Exchange adjustments 394 (189)
Cash flow hedges recognised 61 -
Actuarial losses on defined benefit pension schemes (10,040) (6,523)
Deferred taxation on actuarial losses 2,940 1,932
--------- ---------
Net expense not recognised in the Income Statement (6,645) (4,780)
--------- ---------
Total recognised income / (expense) for the year 464 (2,569)
Fair value of swaps at 1 April 2005 (95) -
--------- ---------
369 (2,569)
========= =========
Total recognised income and expense for the year attributable to:
Equity shareholders 287 (2,628)
Minority interests 177 59
--------- ---------
464 (2,569)
========= =========
Balance Sheet as at 31 March 2006
2006 2005
#'000 #'000
--------- ---------
Non-current assets
Intangible assets 12,332 6,275
Property, plant and equipment 8,364 6,830
Deferred taxation assets 15,171 10,730
--------- ---------
35,867 23,835
--------- ---------
Current assets
Trade and other receivables 67,579 52,484
Corporation tax recoverable 426 189
Cash and cash equivalents 13,166 9,559
--------- ---------
81,171 62,232
--------- ---------
Current liabilities
Trade and other payables (45,040) (28,228)
Current taxation liabilities (2,801) (970)
Financial liabilities
- Borrowings (3,100) (1,860)
Provisions (3,272) (2,947)
--------- ---------
(54,213) (34,005)
--------- ---------
--------- ---------
Net current assets 26,958 28,227
--------- ---------
Non-current liabilities
Financial liabilities
- Borrowings (3,852) (3,248)
Post employment benefits (45,320) (38,901)
Provisions (1,072) (969)
Deferred taxation liabilities (3,009) (1,663)
Other non-current liabilities (1,621) (468)
--------- ---------
(54,874) (45,249)
--------- ---------
Net assets 1(c) 7,951 6,813
========= =========
Shareholders' equity
Called up ordinary share capital 3,266 3,233
Share premium account 12,515 11,701
Retained earnings (8,232) (7,945)
Other reserves 72 (315)
--------- ---------
Total shareholders' equity 7,621 6,674
Minority interests in equity 330 139
--------- ---------
Total equity 7,951 6,813
========= =========
Consolidated Statement of Cash Flows
2006 2005
Note #'000 #'000
--------- ---------
Cash flows from operating activities
Cash generated from operations 3 (a) 11,032 1,355
Interest received 274 79
Interest paid (593) (925)
Taxation paid (443) (310)
--------- ---------
Net cash generated from operating activities 10,270 199
--------- ---------
Cash flows from investing activities
Acquisition of subsidiaries (net of cash acquired) (3,984) (2,366)
Proceeds from sale of property, plant and equipment 46 99
Proceeds from sale of investment 4 -
Purchase of property, plant and equipment (1,548) (1,034)
Distribution from associated undertaking - 101
--------- ---------
Net cash used in investing activities (5,482) (3,200)
--------- ---------
Cash flows from financing activities
Net proceeds from issue of ordinary share capital 45 12,289
Finance lease principal payments (1,064) (757)
Proceeds from issue of new borrowings 1,354 218
Repayment of borrowings (1,424) (5,509)
Dividends paid to shareholders (291) (152)
--------- ---------
Net cash from financing activities (1,380) 6,089
--------- ---------
Effects of exchange rate fluctuations 199 (36)
--------- ---------
Net increase in cash and cash equivalents 3,607 3,052
--------- ---------
Cash and cash equivalents at 1 April 9,559 6,507
--------- ---------
Cash and cash equivalents at 31 March 13,166 9,559
========= =========
Notes to the Financial Statements
1. Segmental analysis by location of operations
Reflecting the Group's management and internal reporting structure, primary
segmental information is presented within the Financial Statements in respect of
geographical segments. The Group manages its business on a global basis with
operations in three main geographical regions, UK and Europe, Asia Pacific and
the Middle East. The UK is the home country of the parent. Inter-segment revenue
relates to contracts priced on an arm's length basis.
The secondary reporting format is by business segment. The Directors consider
that there is only one business segment, being engineering design, planning,
environmental and management consultancy.
(a) Segment revenue
Inter-segment
revenue Total Total
2006 2006 2006 2005
#'000 #'000 #'000 #'000
-------- -------- -------- --------
UK / Europe 95,661 (2,545) 93,116 82,090
Asia Pacific 46,014 (3,171) 42,843 30,166
Middle East 39,576 (4,221) 35,355 23,977
-------- -------- -------- --------
181,251 (9,937) 171,314 136,233
======== ======== ======== ========
(b) Segment results
Total Total
2006 2005
#'000 #'000
-------- --------
Regional operating profit
UK / Europe 6,527 4,065
Asia Pacific 2,382 1,290
Middle East 1,817 1,551
Corporate overheads (2,346) (2,192)
-------- --------
8,380 4,714
Goodwill and amortisation on business combinations
UK / Europe (196) (68)
Asia Pacific (303) -
Middle East (172) 419
Pension scheme settlements 3,711 -
Associated pension settlement costs (1,412) -
Singapore office closure costs (242) (318)
-------- --------
Group operating profit 9,766 4,747
======== ========
The gain on pension settlements, less associated costs, was in respect of the
AGPS UK defined benefit scheme. The benefit arose as a result of approximately
20% of deferred members accepting an offer to transfer out their liabilities
from the scheme, which was enhanced by an incentive payment from the Company.
(c) Segment assets and liabilities
UK / Europe Asia Pacific Middle East Total
#'000 #'000 #'000 #'000
-------- -------- -------- --------
2006
Segment assets 67,823 26,939 22,276 117,038
Segment liabilities (76,701) (17,108) (15,278) (109,087)
-------- -------- -------- --------
(8,878) 9,831 6,998 7,951
======== ======== ======== ========
2005
Segment assets 56,700 14,272 15,095 86,067
Segment liabilities (64,420) (6,473) (8,361) (79,254)
-------- -------- -------- --------
(7,720) 7,799 6,734 6,813
======== ======== ======== ========
(d) Other information
UK / Europe Asia Pacific Middle East Total
#'000 #'000 #'000 #'000
-------- -------- -------- --------
2006
Capital expenditure 1,063 1,987 283 3,333
Depreciation 1,048 431 127 1,606
Amortisation - Software 720 128 105 953
Amortisation - Business
Combinations 196 303 172 671
2005
Capital expenditure 1,591 182 107 1,880
Depreciation 1,111 233 109 1,453
Amortisation - Software 614 114 87 815
Amortisation - Business
Combinations 68 - 111 179
Release of negative
goodwill - - (530) (530)
2. Earnings per share
(a) Number of shares
2006 2005
--------- --------
Earnings per share
Weighted average number of shares in issue 32,338,690 26,447,400
Effect of dilution
Share options 715,776 501,141
----------- ----------
Weighted average shares (diluted) 33,054,466 26,948,541
=========== ==========
(b) Earnings used in the calculation of earnings per share
2006 2005
#'000 #'000
--------- --------
Earnings used for the calculation of basic earnings per
share 6,932 2,152
Less pension settlements gain and associated costs (2,299) -
Add back tax on pension settlements gain and costs at 30% 690 -
Add back Singapore office closure costs 242 318
Add back amortisation of intangible assets
- Business combinations 671 179
Less negative goodwill - (530)
--------- --------
Adjusted earnings 6,236 2,119
========= ========
(c) Earnings per share
2006 2005
Pence Pence
--------- --------
Basic earnings per share 21.44 8.14
Pension settlements gain and associated costs (7.11) -
Tax on pension settlements gain and costs at 30% 2.13 -
Singapore office closure costs 0.75 1.20
Amortisation of intangible assets - Business combinations 2.07 0.68
Negative goodwill - (2.01)
--------- --------
Adjusted basic earnings per share 19.28 8.01
========= ========
2006 2005
Pence Pence
--------- --------
Diluted earnings per share 20.97 7.99
Pension settlements gain and associated costs (6.96) -
Tax on pension settlements gain and costs at 30% 2.09 -
Singapore office closure costs 0.73 1.18
Amortisation of intangible assets - Business combinations 2.03 0.66
Negative goodwill - (1.97)
--------- --------
Adjusted diluted earnings per share 18.86 7.86
========= ========
3. Notes to the Statement of Cash Flows
(a) Cash flows from operating activities
2006 2005
#'000 #'000
-------- --------
Profit for the year 7,109 2,211
Adjustments for:
Taxation 1,230 382
Depreciation 1,606 1,453
Loss on disposal of property, plant and equipment 7 61
Negative goodwill - (530)
Amortisation of intangibles assets - Software 953 815
Amortisation of intangibles assets - Business combinations 671 179
Interest receivable (274) (79)
Interest payable and similar charges 1,701 2,233
Decrease in fixed asset investments - 167
Amendments to fair value of consideration (21) 7
Share option costs 114 65
Pension scheme settlements (3,711) -
Changes in working capital (excluding effects of
acquisitions):
Increase in trade and other receivables (12,015) (3,595)
Increase / (decrease) in trade and other payables 15,037 (1,804)
Increase in post employment benefits (1,015) (84)
Decrease in provisions (360) (126)
-------- --------
Cash generated from operations 11,032 1,355
======== ========
(b) Reconciliation of movement in net funds
At 1 April 2005 Cash flow Acquisition Non cash Exchange At 31 March
(excluding cash movement movement 2006
and overdrafts)
#'000 #'000 #'000 #'000 #'000 #'000
------- ------- -------- -------- ------- -------
Cash at bank 9,559 3,408 - - 199 13,166
------- ------- -------- -------- ------- -------
Debt
due
within
1 year (1,089) (504) (333) - (29) (1,955)
Debt
due
after
1 year (2,387) 574 - - (26) (1,839)
Finance
leases
due
within
1
year (771) 1,064 (177) (1,253) (8) (1,145)
Finance
leases
due
after 1
year (861) - (113) (1,036) (3) (2,013)
------- ------- -------- -------- ------- -------
(5,108) 1,134 (623) (2,289) (66) (6,952)
------- ------- -------- -------- ------- -------
4,451 4,542 (623) (2,289) 133 6,214
======= ======= ======== ======== ======= =======
4. Reconciliation of statutory to adjusted results
Adjusted operating profit and adjusted profit before taxation for the year were
as follows:
2006 2005
#'000 #'000
-------- --------
Group operating profit 9,766 4,747
Add back amortisation of intangible assets - Business
combinations 671 179
Less negative goodwill - (530)
Less pension settlements gain and associated costs (2,299) -
Add back Singapore office closure costs 242 318
-------- --------
Adjusted operating profit 8,380 4,714
-------- --------
Net finance costs (1,427) (2,154)
-------- --------
Adjusted profit before taxation 6,953 2,560
======== ========
5. Financial information
The financial information set out in this preliminary announcement has been
prepared on the basis of the principal accounting policies that are available on
our website, which reflect the changes made following the introduction of
International Financial Reporting Standards.
The 2005 comparatives have been restated to reflect the adoption of these
accounting policies.
The financial information does not constitute statutory accounts within the
meaning of section 240 of the Companies Act 1985. Statutory accounts for the
year ended 31 March 2006 will be despatched to shareholders during June 2006 for
approval at the Annual General Meeting to be held on 27 July 2006.
Non-Statutory information - summary of five year trading results (Unaudited)
The following table contains the results of the Group as would have been
presented if the acquisition of HCHL had taken place on 1 April 2001.
31 March 2006 31 March 2005 31 March 2004* 31 March 2003* 31 March 2002*
#'000 #'000 #'000 #'000 #'000
------- ------- ------- ------- -------
Consolidated
Income Statement
Revenue 171,314 136,233 122,343 115,207 119,749
Operating
profit before
amortisation
and other
adjustments 8,380 4,714 3,173 1,144 543
Amortisation
of goodwill
and
intangibles (671) 351 980 321 2,339
Other adjustments 2,057 (318) (1,203) 307 41
------- ------- ------- ------- -------
Profit before
interest and
taxation 9,766 4,747 2,950 1,772 2,923
Net finance costs (1,427) (2,154) (729) (288) (309)
------- ------- ------- ------- -------
Profit before
taxation 8,339 2,593 2,221 1,484 2,614
======= ======= ======= ======= =======
Consolidated
Balance Sheet
Goodwill and
other intangibles 12,332 6,275 894 (799) (4,662)
Fixed assets 8,364 6,830 8,101 9,063 9,182
Deferred tax 15,171 10,730 1,945 2,409 1,012
Current assets 81,171 62,232 54,278 64,739 58,418
------- ------- ------- ------- -------
117,038 86,067 65,218 75,412 63,950
Current
financial
liabilities
and trade
payables (54,213) (34,005) (31,073) (46,536) (34,305)
------- ------- ------- ------- -------
Total assets
less current
liabilities 62,825 52,062 34,145 28,876 29,645
Non-current
liabilities
and provisions (54,874) (45,249) (18,766) (14,170) (13,247)
------- ------- ------- ------- -------
Net assets 7,951 6,813 15,379 14,706 16,398
======= ======= ======= ======= =======
Called up share capital 3,266 3,233 2,445 9,628 35
Share premium account 12,515 11,701 - 7,694 -
Retained earnings (8,232) (7,945) 12,773 (3,911) 15,265
Other reserves 72 (315) 80 97 -
------- ------- ------- ------- -------
Total
shareholders' equity 7,621 6,674 15,298 13,508 15,300
Minority
interests in equity 330 139 81 1,198 1,098
------- ------- ------- ------- -------
Total equity 7,951 6,813 15,379 14,706 16,398
======= ======= ======= ======= =======
Statistics
Basic earnings
per share p 21.44 8.14 9.02 3.77 12.03
Adjusted basic
earnings per shares p 19.28 8.01 9.95 1.04 1.66
Dividends per
ordinary share p 1.25 0.75 0.40 - -
Adjusted
operating margin % 4.89 3.46 2.59 0.99 0.45
Average number
of employees Number 3,203 2,864 2,671 2,558 2,542
Net funds /
(debt) #'000 6,214 4,451 (3,384) (1,367) 984
* The figures for the years ending 31 March 2002, 2003 and 2004 are presented under UK GAAP.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSFFAUSMSEFM
Hyder Consulting (LSE:HYC)
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