Hyder Consulting PLC
28 November 2008
Hyder Consulting PLC (HYC.L)
Half Year results for the six months ended 30 September 2008
Hyder Consulting PLC, the international advisory and design consultant, is pleased to announce its Half
Year results for the period ended 30 September 2008.
Highlights
* Order book up 10% from 31 March 2008 to �346m
* Revenue up 39% to �151.6m, of which 65% was from overseas
* Adjusted* operating profit up 33% to �8.9m
* Adjusted* net operating margin 7.0% (2007: 7.3%)
* Adjusted* earnings per share up 18% to 17.43p (2007: 14.82p)
* Interim dividend up 50% to 1.35 pence per share
* Integration of acquisitions progressing well
* before exceptional items and amortisation of intangible assets arising on business combinations.
Sir Alan Thomas, Chairman of Hyder Consulting PLC commented:
"I am pleased to report that our half year results are well ahead of the prior year and in line with
expectations. Our international spread, strong order book and low gearing position us well in the
current climate."
Interim Management Report
I am pleased to report that our half year results are well ahead of the prior year and in line with
expectations.
Results
Our order book has increased by 10% from 31 March 2008 to �346m, and by 29% from 30 September 2007.
Approximately two thirds of this order book is outside the UK.
Revenue and net fee for the period increased by 39% to �151.6m (2007: �108.7m) and �127.1m (2007:
�91.8m) respectively, with 65% of revenue generated from overseas. Organic growth in revenue and net
fee was 24%, driven mainly by our overseas businesses.
Adjusted operating profit increased by 33% to �8.9m (2007: �6.7m), with a contribution of �1.7m from
acquisitions made in the prior year. Operating profit, after exceptional items, was �6.7m (2007:
�6.1m).
Our adjusted net operating margin was 7.0% compared with 7.3% for the same period last year, largely as
a result of tighter margins in the UK. In Germany our operating margins improved significantly
following the acquisitions of Seib and Voigt, whilst in the Middle East and Asia Pacific regions
margins have been sustained on significantly higher net revenues. Corporate overheads have increased
by 39% as a result of the increased scale of the business and one-off costs associated with Board
succession.
Net finance costs increased to �1.1m (2007: �0.5m) primarily as a result of the unwinding of the
discount on acquisition consideration and increased notional interest costs on the pension scheme due
to higher discount rates.
The effective rate of tax is 10.7% (2007: 12.9%) reflecting an increased proportion of profits from the
Middle East at low tax rates, and Research and Development tax credits in the UK and Australia.
Adjusted earnings per share increased by 18% to 17.43p (2007: 14.82p). Basic earnings per share were
13.18p (2007: 13.47p). Exceptional items relating to the restructuring of the UK region, and in 2007
gains relating to the pension scheme, are excluded from the calculation of adjusted earnings per share.
We now employ over 5,000 people, an increase of approximately 20% over the last year.
Dividend
In recognition of the growth in profits the Board has declared a 50% increase in the interim dividend
to 1.35p (2007: 0.9p) payable on 12 January 2009 to shareholders on the register at 12 December 2008.
Funding
Net debt was �8.7m at 30 September 2008, compared to �11.1m at 31 March 2008. The reduction of �2.4m
reflects the collection of contract payments which were delayed over the year end, partially offset by
increases in working capital arising from higher revenues. Our long term revolving credit facilities
with our principal banks total �38m, giving headroom of approximately �30m. These facilities will be
due for renewal in April 2012 and February 2013. Our balance sheet is strong and we shall sustain our
efforts to manage working capital efficiently.
Pension fund
The deficit in the AGPS as reported under IAS19 reduced by �2.3m net of deferred tax to �15.7m. During
the period the Group made cash contributions of �1.8m. Actuarial gains of �2.3m were recognised
following increased discount rates, mitigated by lower than expected returns on the fund's assets. The
deficit will increase in the short term should discount rates reduce.
Regional review
UK / Europe
Revenue increased by 16% to �65.0m (2007: �55.9m) whilst operating profits increased 8% to �4.8m (2007:
�4.4m). Turnover growth, excluding the two acquisitions in Germany, was 3%.
In the UK water sector, our resources continue to be well utilised despite the slowdown towards the end
of the AMP4 cycle and we are well prepared for the transition to AMP5. Our transportation business has
performed well over the period, although opportunities in the rail sector have been slower to come to
fruition than anticipated. The private sector property market, which represents less than 5% of Group
revenue, has slowed although we have successfully redeployed resources to Middle East projects where
our workload remains strong.
We made changes to our operations in the UK during the period in order better to address the
opportunities in the present conditions. This included a small number of redundancies and associated
costs which are shown as exceptional items.
In Germany we are pleased with the performance of our two recent acquisitions, Seib and Voigt, which
work primarily on public sector infrastructure projects, positioning us well in the current German
economic climate. Their integration into the wider Group is progressing well.
Middle East
Revenue increased by 80% to �43.7m (2007: �24.3m) whilst operating profits increased 77% to �3.6m
(2007: �2.0m). Organic turnover growth was 53%.
Our business in the Middle East has grown substantially over the last year and we now employ almost
1,700 people in the region. We have a long established presence in the UAE, Qatar and Bahrain, and are
benefiting from the client relationships, many of them longstanding, that we have developed. Our
substantial order book, which is of high quality, has increased 78% over the last 12 months which,
despite some slowdown in the property market in Dubai, gives us confidence for the future.
The acquisition of Holfords has broadened our service offering and we are expanding its geographical
application across our regional networks. The integration is progressing well and in line with our
expectations.
Asia Pacific
Revenue increased by 51% to �42.9m (2007: �28.5m), net fees by 49%, and operating profits increased by
46% to �2.5m (2007: �1.7m). Organic turnover growth was 39%.
In Australia, we are working on four significant Alliance contracts which provide us with good
visibility of future earnings. Further attractive opportunities are available to us in the buoyant
Queensland infrastructure market, which will help to mitigate the effects of recent cut-backs by the
New South Wales State Government.
In East Asia, our Hong Kong business has performed well, showing a significant improvement over the
prior year. We have continued to grow our businesses in China and Vietnam and are investing in further
opportunities there.
Board of Directors
Tim Wade and Simon Hamilton-Eddy are retiring from the Board as Chief Executive and Financial Director
on 30 November and 10 December respectively. Under their leadership the Group has substantially
improved its operating performance and developed its capability following the management buy-out in
2001 and the reverse takeover in 2002. They leave the Group well placed for the future and I would
like to express the Board's appreciation to both of them.
Ivor Catto will join the Board on 1 December as Chief Executive, having previously been Managing
Director of W S Atkins's largest division, and Russell Down will become Finance Director on 11
December, stepping up from his current role of Group Head of Finance and Development. I am delighted
to welcome them both to the Board.
Principal risks and uncertainties
The Group operates a structured risk management process regularly monitored by the Board, which seeks
to identify, evaluate and prioritise risk, and review mitigation activities. The principal risks and
uncertainties facing the Group relate to significant changes in market conditions, contractual disputes
and claims, recruitment and retention of key staff, project execution, and foreign exchange movements.
Outlook
We have already made changes in response to the economic climate and will continue to adapt in the
light of market conditions. Whilst the scale and spread of the economic slowdown creates some
uncertainty in the medium term, our geographic reach and balance of public sector and infrastructure
projects will mitigate the potential effects on the Group.
Over 65% of our revenues are generated from overseas markets. This international spread, our strong
order book, and low gearing position us well in the present climate. We are responsive to the
opportunities as well as challenges in our geographies, and will be alert to acquisition opportunities
which may arise in these conditions. We have confidence in meeting market expectations for the
remainder of the financial year, with approximately 60% of the next 12 months' revenue secured.
I would like to take this opportunity to thank all members of the Hyder team for their commitment and
contribution to these results.
Sir Alan Thomas
Chairman
28 November 2008
Consolidated Income Statement for the six months ended 30 September 2008 (unaudited)
Six months Six months Year ended
ended 30 ended 30 31 March
September September 2008
2008 2007
Note �'000 �'000 �'000
------------------------------------------------
Revenue 2 151,558 108,733 233,672
Cost of sales
Direct project costs (24,425) (16,965) (36,765)
Other operating costs (87,193) (65,242) (139,325)
------------------------------------------------
Gross profit 39,940 26,526 57,582
------------------------------------------------
Administration expenses (33,210) (20,464) (44,167)
------------------------------------------------------------------------------------------------------
Group operating profit 2 6,730 6,062 13,415
------------------------------------------------
------------------------------------------------------------------------------------------------------
Analysed as:
EBITA (Pre-exceptional items) 9,496 7,154 16,041
Amortisation of intangible assets
- Software (620) (446) (1,004)
- Business combinations (1,586) (781) (1,802)
Restructuring costs (560) - -
Pension scheme settlements and curtailments - 135 180
------------------------------------------------
Group operating profit 2 6,730 6,062 13,415
------------------------------------------------
------------------------------------------------------------------------------------------------------
Finance costs 3 (1,255) (628) (1,641)
Finance income 3 198 119 974
------------------------------------------------
Profit before taxation 5,673 5,553 12,748
Taxation (607) (717) (1,575)
------------------------------------------------
Profit for the financial period 5,066 4,836 11,173
------------------------------------------------
------------------------------------------------
Profit attributable to minority interests - 3 3
Profit attributable to equity shareholders 5,066 4,833 11,170
------------------------------------------------------------------------------------------------------
Earnings per share (pence)
Basic 4 13.18 13.47 30.91
Diluted 4 13.14 13.10 30.04
------------------------------------------------------------------------------------------------------
Equity - Ordinary 10p shares
Dividends (�'000) - paid 5 789 502 823
Dividend per share (pence) 5 2.10 1.40 2.30
------------------------------------------------------------------------------------------------------
Dividends (�'000) - proposed 509 323 792
Dividend per share (pence) 1.35 0.90 2.10
All activities are continuing.
Consolidated Statement of Recognised Income and Expense (unaudited)
Six months Six months Year ended
ended 30 ended 30 31 March
September September 2008
2008 2007
�'000 �'000 �'000
----------------------------------------------------
Profit for the financial period 5,066 4,836 11,173
Exchange adjustments 1,507 85 3,156
Cash flow hedges recognised 44 - (99)
Transfer from minority interest - 16 16
Actuarial gains / (losses) on defined benefit 2,362 (1,268) 5,352
pension schemes
Deferred taxation on actuarial (gains) / losses (661) 355 (1,682)
Effect of UK tax rate change - (775) (663)
----------------------------------------------------
Net income / (expense) not recognised in the 3,252 (1,587) 6,080
Income Statement
----------------------------------------------------
Total recognised income for the financial period 8,318 3,249 17,253
----------------------------------------------------
----------------------------------------------------
Equity shareholders 8,318 3,246 17,250
Minority interests - 3 3
----------------------------------------------------
8,318 3,249 17,253
----------------------------------------------------
----------------------------------------------------
Consolidated Balance Sheet as at 30 September 2008 (unaudited)
As at 30 As at 30 As at 31
September September March
2008 2007 2008
Note �'000 �'000 �'000
----------------------------------------------------
Non-current assets
Intangible assets 9 42,987 20,850 45,452
Property, plant and equipment 9 12,825 10,220 11,142
Deferred taxation assets 7,531 11,003 8,559
----------------------------------------------------
63,343 42,073 65,153
----------------------------------------------------
Current assets
Trade and other receivables 113,770 83,977 102,718
Corporation tax recoverable 1,066 2,098 1,866
Cash and cash equivalents 17,230 9,836 14,823
-----------------------------------------------------
132,066 95,911 119,407
----------------------------------------------------
Current liabilities
Trade and other payables (74,775) (50,727) (64,461)
Current taxation liabilities (1,110) (1,771) (1,694)
Financial liabilities
- Borrowings (2,387) (6,396) (2,696)
Provisions 6 (2,830) (3,046) (2,930)
----------------------------------------------------
(81,102) (61,940) (71,781)
----------------------------------------------------
---------------------------------------------------
Net current assets 50,964 33,971 47,626
----------------------------------------------------
Non-current liabilities
Financial liabilities
- Borrowings (23,495) (9,034) (23,252)
Post employment benefits 10 (25,077) (33,922) (27,363)
Provisions 6 (328) (237) (367)
Deferred taxation liabilities (3,729) (2,583) (4,111)
Other non-current liabilities (4,411) (1,744) (7,952)
----------------------------------------------------
(57,040) (47,520) (63,045)
----------------------------------------------------
Net assets 57,267 28,524 49,734
----------------------------------------------------
----------------------------------------------------
Shareholders' equity
Called up ordinary share capital 3,773 3,591 3,770
Share premium account 28,755 21,411 28,667
Retained earnings 22,006 5,202 15,939
Other reserves 2,707 (1,733) 1,332
----------------------------------------------------
Total shareholders' equity 57,241 28,471 49,708
Minority interests in equity 26 53 26
----------------------------------------------------
Total equity 7 57,267 28,524 49,734
----------------------------------------------------
----------------------------------------------------
Consolidated Statement of Cash Flows (unaudited)
Six months Six months Year ended
ended 30 ended 30 31 March
September September 2008
2008 2007
Note �'000 �'000 �'000
----------------------------------------------------
Cash flows from operating activities
Cash generated from / (used in) operations 8 8,473 (6,393) 4,195
Interest received 198 119 974
Interest paid (844) (521) (1,442)
Taxation paid (527) (1,162) (1,805)
-----------------------------------------------------
Net cash generated from / (used in) 7,300 (7,957) 1,922
operating activities
----------------------------------------------------
Cash flows from investing activities
Acquisition of subsidiaries (net of cash (257) (2,852) (17,523)
acquired) and payment of deferred
consideration
Proceeds from sale of property, plant and 194 10 40
equipment
Purchase of minority interests - (129) (159)
Purchase of property, plant and equipment (4,102) (1,369) (4,067)
----------------------------------------------------
Net cash used in investing activities (4,165) (4,340) (21,709)
----------------------------------------------------
Cash flows from financing activities
Net cash from movements in issued share (232) 83 4,020
capital
Finance lease principal payments (686) (661) (1,665)
Net proceeds from issue of new borrowings 13,322 6,411 31,619
Repayment of borrowings (12,896) (1,822) (17,447)
Dividends paid to shareholders 5 (789) (502) (823)
----------------------------------------------------
Net cash (used in) / generated from (1,281) 3,509 15,704
----------------------------------------------------
financing activities
Effects of exchange rate fluctuations 553 (39) 243
----------------------------------------------------
Net increase / (decrease) in cash and cash 2,407 (8,827) (3,840)
equivalents
----------------------------------------------------
Cash and cash equivalents at 1 April 14,823 18,663 18,663
----------------------------------------------------
Cash and cash equivalents at period end 17,230 9,836 14,823
----------------------------------------------------
----------------------------------------------------
Notes to the Consolidated Financial Statements (unaudited)
1. General information
(a) Basis of preparation
This condensed unaudited consolidated financial information for the half year ended 30 September 2008
has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Services
Authority and with IAS 34, "Interim financial reporting" as adopted by the European Union (EU). The
half year condensed consolidated financial report should be read in conjunction with the annual
financial statements for the year ended 31 March 2008, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the EU.
The condensed consolidated half yearly financial statements have been prepared in accordance with IFRS
as adopted by the EU, and those parts of the Companies Act 1985 related to reporting under IFRS that
the Directors expect to be applicable as at 31 March 2009. IFRS are subject to amendment or
interpretation by the International Accounting Standards Board and there is an ongoing process of
review and endorsement by the EU. For these reasons, it is possible that the information presented in
this report may be subject to change.
The preparation of financial statements in conformity with generally accepted accounting principles
requires the use of estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reported period. Although these estimates are based on management's best knowledge of the
amount, events or actions, actual results ultimately may differ from those estimates.
The financial information does not constitute statutory accounts within the meaning of section 240 of
the Companies Act 1985. The financial information relating to the year ended 31 March 2008 has been
delivered to the Registrar of Companies. The report of the auditors on these accounts was unqualified
and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985.
(b) Principal accounting policies
The accounting policies adopted are consistent with those of the annual financial statements for the
year ended 31 March 2008, as described in those financial statements.
The Group's significant accounting policies under IFRS are available on the corporate website
www.hyderconsulting.com within the "Investors" section.
2. 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 / 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 secondary business segment, being engineering design,
planning, environmental and management consultancy. Therefore, the disclosures for the secondary
segment have already been given in these Financial Statements.
(a) Segment revenue
2008 Inter- Six months Six months Year ended
segment ended 30 ended 30 31 March
revenue September September 2008
2008 2008 2007
�'000 �'000 �'000 �'000 �'000
--------------------------------------------------------------------------
UK / Europe
- Continuing operations 65,104 (153) 64,951 55,141 113,051
- Acquisitions - - - 769 5,191
Asia Pacific
- Continuing operations 44,298 (1,370) 42,928 28,512 60,964
- Acquisitions - - - - 605
Middle East
- Continuing operations 48,534 (4,855) 43,679 24,311 53,183
- Acquisitions - - - - 678
--------------------------------------------------------------------------
157,936 (6,378) 151,558 108,733 233,672
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(b) Segment results
Regional operating profit
UK / Europe
- Continuing operations 4,801 4,204 8,799
- Acquisitions - 226 946
Asia Pacific
- Continuing operations 2,516 1,719 3,543
- Acquisitions - - 116
Middle East
- Continuing operations 3,600 2,032 4,508
- Acquisitions - - 56
Corporate overheads (2,041) (1,473) (2,931)
----------------------------------------
8,876 6,708 15,037
Amortisation - business combinations
UK / Europe
- Continuing operations (667) (335) (672)
- Acquisitions - (117) (389)
Asia Pacific
- Continuing operations (521) (290) (551)
- Acquisitions - - (59)
Middle East
- Continuing operations (398) (39) (79)
- Acquisitions - - (52)
Exceptional items
UK Restructuring costs (560) - -
UK Pension scheme settlements - 320 350
UK Associated pension settlement costs - (185) (170)
----------------------------------------
Group operating profit 6,730 6,062 13,415
----------------------------------------
----------------------------------------
3. Net finance costs
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2008 2007 2008
�'000 �'000 �'000
----------------------------------------
Bank borrowings (678) (404) (1,048)
Interest expense on tax balances - - (149)
Finance leases (100) (117) (237)
Bond facilities - - (3)
Unwinding of discounts in provisions (10) (15) (48)
Unwinding of discounts in deferred and contingent (306) (68) (156)
consideration
Net finance cost on pension scheme (161) (24) -
----------------------------------------
Finance costs (1,255) (628) (1,641)
----------------------------------------
Investment interest income 159 115 251
Interest income received on tax refunds 39 1 153
Interest income received on recovered debts - - 537
Interest rate financial instruments - 3 14
Net finance income on pension scheme - - 19
----------------------------------------
Finance income 198 119 974
----------------------------------------
Net finance costs (1,057) (509) (667)
----------------------------------------
----------------------------------------
4. Earnings per share
(a) Number of shares
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2008 2007 2008
----------------------------------------------
Weighted average number of shares in issue 38,419,741 35,889,530 36,132,838
Effect of dilution
Share options 123,405 1,019,323 1,051,573
----------------------------------------------
Weighted average shares (diluted) 38,543,146 36,908,853 37,184,411
----------------------------------------------
----------------------------------------------
(b) Earnings used in the calculation of earnings per share
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2008 2007 2008
�'000 �'000 �'000
----------------------------------------------
Earnings used for the calculation of basic earnings per 5,066 4,833 11,170
share
Add back UK restructuring costs 560 - -
Less pension settlements and curtailments net of costs - (135) (180)
Add back amortisation of intangible assets on business 1,586 781
combinations 1,802
Add back tax on adjusted items (514) (161) (386)
----------------------------------------------
Adjusted earnings 6,698 5,318 12,406
----------------------------------------------
----------------------------------------------
(c) Earnings per share
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2008 2007 2008
Pence Pence Pence
----------------------------------------------
Basic earnings per share 13.18 13.47 30.91
Add back UK restructuring costs 1.46 - -
Less pension settlements and curtailments net of costs - (0.38) (0.50)
Add back amortisation of intangible assets on business 4.13 2.18 4.99
combinations
Add back tax on adjusted items (1.34) (0.45) (1.07)
----------------------------------------------
Adjusted basic earnings per share 17.43 14.82 34.33
----------------------------------------------
----------------------------------------------
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2008 2007 2008
Pence Pence Pence
----------------------------------------------
Diluted earnings per share 13.14 13.10 30.04
Add back UK restructuring costs 1.45 - -
Less pension settlements and curtailments net of costs - (0.37) (0.48)
Add back amortisation of intangible assets on business 4.11 2.12 4.84
combinations
Add back tax on adjusted items (1.33) (0.44) (1.04)
----------------------------------------------
Adjusted diluted earnings per share 17.37 14.41 33.36
----------------------------------------------
----------------------------------------------
5. Dividends
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2008 2007 2008
�'000 �'000 �'000
----------------------------------------------
Dividends charged to equity in the period 789 502 823
----------------------------------------------
----------------------------------------------
Equity - Ordinary 10p shares
Final dividend paid (pence) 2.10 1.40 1.40
Interim dividend paid (pence) - - 0.90
The Directors are proposing an interim dividend of 1.35 pence per share (2007: 0.90 pence). In
accordance with IFRS the interim dividend has not been recognised in the Financial Statements but will
be paid on 12 January 2009 to shareholders on the register as at 12 December 2008.
6. Provisions
Professional Vacant Total
indemnity property
insurance
�'000 �'000 �'000
-------------------------------------------------------
At 31 March 2008 2,897 400 3,297
Charged to the Income Statement 159 - 159
Released to the Income Statement (224) - (224)
Utilised in the period (161) (30) (191)
Amortisation of discount - 10 10
Exchange adjustments 107 - 107
-------------------------------------------------------
At 30 September 2008 2,778 380 3,158
-------------------------------------------------------
-------------------------------------------------------
At 30 September 2008
Current liabilities 2,778 52 2,830
Non-current liabilities - 328 328
-------------------------------------------------------
2,778 380 3,158
-------------------------------------------------------
-------------------------------------------------------
At 30 September 2007
Current liabilities 2,723 323 3,046
Non-current liabilities - 237 237
-------------------------------------------------------
2,723 560 3,283
-------------------------------------------------------
-------------------------------------------------------
At 31 March 2008
Current liabilities 2,897 33 2,930
Non-current liabilities - 367 367
-------------------------------------------------------
2,897 400 3,297
-------------------------------------------------------
-------------------------------------------------------
Professional indemnity insurance
The provision reflects management's estimate of the likely cost of claims including professional
indemnity insurance excesses and has been provided in accordance with Group policy. These provisions
will be carried forward until the claims to which they relate are agreed and amounts utilised or
released as appropriate.
Vacant property
The provision represents the estimated net present value of future rentals where properties are vacant.
These provisions will be utilised up until such time as the vacant properties are re-let (when the
requirement for a provision will be reassessed), or the lease terminates, which ever occurs earlier.
7. Shareholders' funds and statement of changes in shareholders' equity
Share Share Retained Fair value Total Minority Total
capital premium earnings and other interest equity
reserves
�'000 �'000 �'000 �'000 �'000 �'000 �'000
-------------------------------------------------------------------------------------
At 31 March 2007 3,585 21,262 2,437 (1,592) 25,692 242 25,934
New shares issued 6 - - - 6 - 6
Premium on new shares issued - 149 - - 149 - 149
Profit for the period - - 4,833 - 4,833 3 4,836
Acquisition of minority - - - - - (168) (168)
interests
Dividends paid - - (502) - (502) - (502)
Actuarial losses on defined - - (1,268) - (1,268) - (1,268)
benefit pension schemes
Deferred tax on actuarial - - 355 - 355 - 355
losses
Effect of UK tax rate change - - (775) - (775) - (775)
Share options charges - - 79 - 79 - 79
Deferred tax on share options - - 27 - 27 - 27
Incentives granted in the - - - (300) (300) - (300)
period
IFRS 2 charge for the period - - - 74 74 - 74
Transfer to retained earnings - - 16 - 16 (16) -
Exchange adjustments - - - 85 85 (8) 77
-------------------------------------------------------------------------------------
At 30 September 2007 3,591 21,411 5,202 (1,733) 28,471 53 28,524
New shares issued 179 - - - 179 - 179
Premium on new shares issued - 7,256 - - 7,256 - 7,256
Profit for the period - - 6,337 - 6,337 - 6,337
Acquisition of minority - - - - - 168 168
interests
Dividends paid - - (321) - (321) - (321)
Actuarial gains on defined - - 6,620 - 6,620 - 6,620
benefit pension schemes
Deferred tax on actuarial - - (2,037) - (2,037) - (2,037)
gains
Effect of UK tax rate change - - 112 - 112 - 112
Share options charges - - 100 - 100 - 100
Deferred tax on share options - - (74) - (74) - (74)
Cash flow hedges recognised - - - (99) (99) - (99)
IFRS 2 charge for the period - - - 93 93 - 93
Minority interest acquired - - - - - (195) (195)
Exchange adjustments - - - 3,071 3,071 - 3,071
-------------------------------------------------------------------------------------
At 31 March 2008 3,770 28,667 15,939 1,332 49,708 26 49,734
New shares issued 3 - - - 3 - 3
Premium on new shares issued - 88 - - 88 - 88
Profit for the period - - 5,066 - 5,066 - 5,066
Dividends paid - - (789) - (789) - (789)
Actuarial gains on defined - - 2,362 - 2,362 - 2,362
benefit pension schemes
Deferred tax on actuarial - - (661) - (661) - (661)
gains
Share options charges - - 89 - 89 - 89
Cash flow hedges recognised - - - 44 44 - 44
Incentives granted in the - - - (298) (298) - (298)
period
IFRS 2 charge for the period - - - 122 122 - 122
Exchange adjustments - - - 1,507 1,507 - 1,507
-------------------------------------------------------------------------------------
At 30 September 2008 3,773 28,755 22,006 2,707 57,241 26 57,267
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
8. Notes to the Consolidated Statement of Cash Flows
(a) Cash flows from operating activities
Six months Six months Year
ended 30 ended 30 ended 31
September September March
2008 2007 2008
�'000 �'000 �'000
------------------------------------------------------
Profit for the financial period 5,066 4,836 11,173
Adjustments for:
Taxation 607 717 1,575
Depreciation 1,477 1,138 2,446
Loss on disposal of property, plant and equipment 20 9 -
Amortisation of software 620 446 1,004
Amortisation of business combinations 1,586 781 1,802
Interest receivable (198) (119) (974)
Interest payable and similar charges 1,255 628 1,641
Fair value loss / (gain) on financial instruments 77 - (476)
Share option costs 236 186 388
Decrease in provisions (246) (210) (306)
Defined benefit pension scheme charges 1,923 959 2,598
Pension scheme curtailments - - (350)
Pension scheme settlements - (320) -
Contributions to defined benefit pension schemes (2,469) (3,635) (6,012)
Changes in working capital (excluding effects of
acquisitions):
Increase in trade and other receivables (10,978) (5,980) (12,916)
Increase / (decrease) in trade and other payables 9,497 (5,829) 2,602
------------------------------------------------------
Cash generated from / (used in) operations 8,473 (6,393) 4,195
------------------------------------------------------
------------------------------------------------------
(b) Reconciliation of movement in net debt
At 30 At 1 Cash Non cash Exchange At 30
September April flow movement movement September
2007 2008 2008
�'000 �'000 �'000 �'000 �'000 �'000
------------------------------------------------------------------------------------
Cash at bank 9,836 14,823 1,854 - 553 17,230
------------------------------------------------------------------------------------
Debt due within 1 year (4,739) (1,105) 682 (642) (2) (1,067)
Debt due after 1 year (7,434) (21,741) (1,108) 760 3 (22,086)
Finance leases due within 1 (1,657) (1,591) 641 (333) (37) (1,320)
year
Finance leases due after 1 (1,600) (1,511) 45 28 29 (1,409)
year
------------------------------------------------------------------------------------
(15,430) (25,948) 260 (187) (7) (25,882)
------------------------------------------------------------------------------------
(5,594) (11,125) 2,114 (187) 546 (8,652)
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
9. Property, plant and equipment and intangible assets
Property, plant and Intangible
equipment assets
�'000 �'000
----------------------------------------------------
Net book value
At 31 March 2007 9,443 18,047
Exchange adjustments 268 194
Additions - Separately acquired 1,576 610
Additions - On business combinations 89 3,330
Disposals (18) (104)
Depreciation and amortisation (1,138) (1,227)
----------------------------------------------------
At 30 September 2007 10,220 20,850
Exchange adjustments 458 388
Additions - Separately acquired 1,863 1,618
Additions - On business combinations 793 22,136
Disposals (22) 104
Revaluations - 1,073
Depreciation and amortisation (1,308) (1,579)
Transfers (862) 862
----------------------------------------------------
At 31 March 2008 11,142 45,452
Exchange adjustments (32) 1,585
Additions - Separately acquired 3,396 872
Disposals (204) (6)
Revaluations - (2,710)
Depreciation and amortisation (1,477) (2,206)
----------------------------------------------------
At 30 September 2008 12,825 42,987
10. Post employment benefits
Employees of the Group participate in a number of pension schemes both in the UK and overseas. The
principal scheme in the UK is the Acer Group Pension Scheme (AGPS) which is a defined benefit scheme.
The amounts included in the balance sheet for post employment benefits are as follows:
As at 30 As at 30 As at 31
September September March
2008 2007 2008
�'000 �'000 �'000
----------------------------------------------------
AGPS 19,269 30,544 22,481
Unfunded Annuitants scheme 653 684 678
----------------------------------------------------
Total AGPS and Annuitants scheme 19,922 31,228 23,159
Overseas schemes 5,155 2,694 4,204
----------------------------------------------------
Post employment benefits 25,077 33,922 27,363
----------------------------------------------------
----------------------------------------------------
As at 30 As at 30 As at 31
September September March
2008 2007 2008
AGPS and Annuitants scheme: % % %
----------------------------------------------------
Rate of increase in salaries 3.70 3.40 3.60
Rate of increase to pensions in payment:
- Index linked pensions with max 3% per annum increases 3.00 3.00 3.00
- Other index linked pensions 3.70 3.40 3.60
Discount rate 6.50 5.80 6.20
Inflation assumptions 3.70 3.40 3.60
Expected rates of return on scheme assets:
Equities 8.40 8.50 8.30
Bonds 5.60 5.70 5.50
Other 5.00 5.75 5.25
Longevity at age 65 for current pensioners
- Men 21.9 years 21.4 years 21.9 years
- Women 23.8 years 23.9 years 23.8 years
Longevity at age 65 for future pensioners
- Men 23.8 years 22.9 years 23.8 years
- Women 25.7 years 25.4 years 25.7 years
The amounts included in the balance sheet for the AGPS and �'000 �'000 �'000
Annuitants scheme are as follows:
----------------------------------------------------
At 31 March 2008 (23,159) (33,320) (33,320)
Current service costs (740) (800) (1,519)
Notional interest on pension liability (161) (24) 15
Contributions by employers 1,767 3,864 5,707
Actuarial gains / (losses) due to:
- Changes in mortality assumptions - (10,425) (13,105)
- Changes in other actuarial assumptions 7,526 7,687 15,265
- Return on assets (5,155) 1,470 3,448
Settlements - 320 350
----------------------------------------------------
Deficit in AGPS and Annuitants scheme (19,922) (31,228) (23,159)
Related deferred tax asset 4,217 6,744 5,123
----------------------------------------------------
Net pension deficit (15,705) (24,484) (18,036)
----------------------------------------------------
11. Contingent liabilities
The Directors estimate that at 30 September 2008 contingent liabilities, primarily in respect of the
insurance excesses relating to potential professional indemnity claims, with regard to contracts of
Group companies and joint ventures, in excess of amounts provided for in the Financial Statements,
amounted to �6.0m (2007: �5.8m). The Directors do not consider any provision is necessary in respect
of these amounts as they consider the likelihood of loss to be remote based on legal and other advice
received.
Hyder Consulting PLC and various Group companies have entered into performance guarantees and
performance bonds supporting project requirements and certain other bonds and guarantees in the
ordinary course of business. The Group's liabilities under performance guarantees are only limited to
the extent of the underlying contracts. The potential liability of subsidiary undertakings under bonds
and guarantees as at 30 September 2008 totalled �15.4m (2007: �12.3m). The Directors do not consider
any provision is necessary in respect of guarantees and bonds.
12. Cautionary statement
This Half Year Report has been prepared solely for the Company's members, as a body. The report may
contain certain forward-looking statements with respect to the financial condition, performance,
results, strategy and objectives, operations and businesses of the Group. By their nature these
statements involve uncertainty because they relate to future events and circumstances which are beyond
the Group's control. As a result the Group's actual future financial condition, performance and
results may differ materially from the plans or expectations in any forward-looking statement. The
Company assumes no obligation to update or revise any forward-looking statement, resulting from new
information, future events or otherwise. Nothing in this Half Year Report should be construed as a
profit forecast.
13. Further information
An electronic version of the Half Year Report and 31 March 2008 financial statements can be viewed on
the corporate web site: www.hyderconsulting.com.
Statement of Directors' Responsibilities
The Directors confirm that to the best of their knowledge this condensed set of financial statements
has been prepared in accordance with IAS 34 as adopted by the European Union, and that the Interim
Management Report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.
The Directors of Hyder Consulting PLC are listed in the Hyder Consulting PLC Annual Report and
Financial Statements 2008. There have been no changes of directors since the Annual Report. A list of
current directors is maintained on the Hyder Consulting website www.hyderconsulting,com.
Independent Review Report to Hyder Consulting PLC
Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-
yearly financial report for the six months ended 30 September 2008, which comprises the consolidated
income statement, consolidated balance sheet, the consolidated statement of recognised income and
expense, consolidated statement of cash flows and related notes. We have read the other information
contained in the half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed set of financial
statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The
directors are responsible for preparing the half-yearly financial report in accordance with the
Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with
IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-
yearly financial report has been prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report based on our review. This report, including the
conclusion, has been prepared for and only for the company for the purpose of the Disclosure and
Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in
producing this report, accept or assume responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come save where expressly agreed by our prior
consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and
Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim
financial information consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less
in scope than an audit conducted in accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set
of financial statements in the half-yearly financial report for the six months ended 30 September 2008
is not prepared, in all material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
Bristol
28 November 2008
Hyder Consulting PLC
Hyder Consulting (LSE:HYC)
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Hyder Consulting (LSE:HYC)
過去 株価チャート
から 7 2023 まで 7 2024
