TIDMHYC
Half Year results for the six months ended 30 September 2009
Hyder Consulting PLC
23 November 2009
HYC.L
Hyder Consulting PLC (HYC.L)
Half Year results for the six months ended 30 September 2009
Hyder Consulting PLC, the multi-national advisory and design consultancy, is pleased to announce its Half Year
results for the period ended 30 September 2009.
Highlights
* Secured order book GBP352m: approximately 60% of next 12 months' revenue secured
* Revenue increased by 3.1% to GBP156.3m (2008: GBP151.6m)
* International business generating 72% of revenue (2008: 65%)
* Operating profit GBP6.8m (2008: GBP6.7m)
* Adjusted operating profit* of GBP8.1m (2008: GBP8.3m)
* Net operating margins of 6.1% (2008: 6.5%)
* Adjusted diluted earnings per share* 15.0p (2008: 16.3p)
* Interim dividend up 11% to 1.5 pence per share
* before amortisation of business combinations
Sir Alan Thomas, Chairman of Hyder Consulting PLC commented:
"I am pleased to report that our half year results are in line with the prior year and market expectations. Over
70% of revenues are now earned overseas and our geographic and sector diversity gives us confidence in meeting
our expectations for the remainder of the financial year."
Interim Management Report
I am pleased to report that our half year results are in line with the prior year and market expectations.
Results
Our order book has increased by 1.7% from 30 September 2008 to GBP352m. Revenue for the period increased by 3% to
GBP156.3m (2008: GBP151.6m) and net revenue by 6% to GBP134.2m (2008: GBP127.1m), with 72% of revenue generated outside
the UK.
Operating profit increased slightly to GBP6.8m (2008: GBP6.7m). Adjusted operating profit was GBP8.1m (2008: GBP8.3m)
after charging GBP1.7m of costs for redundancies and office closures in the period. In the prior period GBP0.6m of
redundancy costs have been reclassified against operating profit.
Net finance costs amounted to GBP1.1m (2008: GBP1.1m) with reduced interest costs on external borrowings offset by
higher finance costs on the pension scheme.
The effective rate of tax increased to 17.1% (2008: 10.7%) reflecting an increased proportion of profits from
Australia where tax rates are higher than the UK.
Diluted earnings per share fell by 7% to 12.20p (2008: 13.14p) as a result of the higher tax rate.
Dividend
The Board has declared an 11% increase in the interim dividend to 1.5p (2008: 1.35p) payable on 13 January 2010 to
shareholders on the register at 11 December 2009.
Funding
Net debt was GBP16.2m at 30 September 2009, compared to GBP5.7m at 31 March 2009. The increase is due to payments of
redundancy and property provisions GBP6m, special pension contributions GBP3m, deferred consideration GBP1m, and the
seasonality of working capital. We have total facilities of GBP57.6m and headroom of GBP41.4m. The principal
revolving credit facilities totalling GBP38m are due for renewal in April 2012 and February 2013.
Pension fund
The deficit in the AGPS as reported under IAS 19 increased by GBP0.3m, net of deferred tax, to GBP21.1m. Actuarial
gains of GBP12.6m were recognised following improved asset returns, offset by actuarial losses from reduced discount
rates of GBP16.4m. During the period the Group made cash contributions of GBP4.7m.
Strategy
Our client-centred strategy has led to the winning of a number of important contracts in the period. These include
the M80 Alliance contract and further work on the 'Building the Education Revolution' programme in Australia;
projects for MTR in Hong Kong, Crossrail and the Environment Agency in the UK; Pentominium Tower in Dubai; and the
A5 PPP Motorway in Germany. Our new market-facing structure has helped us to differentiate and execute more
effectively for our target clients.
A performance review was undertaken in the first half of the year to improve operational efficiency through
targeted headcount and office space reductions. We have continued to exit or reshape operations which have been
insufficiently differentiated in the market. The costs associated with this programme amount to GBP1.7m and have
been absorbed within operating costs for the period.
Regional review
72% of our revenues are earned outside the UK. This international spread has enabled us to sustain our operating
profit at last year's levels despite charging redundancy and other one-off costs of GBP1.7m (2008: GBP0.6m); foreign
exchange gains were approximately GBP1m.
UK / Europe
Revenue fell 7% to GBP60.6m (2008: GBP65.0m) whilst adjusted operating profits reduced to GBP1.0m (2008: GBP4.2m) after
charging redundancy costs of GBP0.6m.
In the UK our transportation business has performed well over the period, with important projects secured in the
rail sector for Crossrail, Network Rail and Transport for London. The property and environment markets have been
difficult and we have undertaken further staff reductions to scale back areas where we are insufficiently
differentiated and to align our resource levels with market demand. The UK water business suffered from a
temporary slowdown in the second quarter ahead of AMP5, although we have won contracts with Severn Trent and South
West Water and are confident of securing further opportunities. During the period headcount has reduced by 8% and
we have incurred redundancy costs of GBP0.6m.
In Germany the transport and utilities sectors are performing well and we have won a number of important
assignments. The property market remains difficult with slower sales and some project and debt write-downs. We
have continued to restructure our operations in order to sharpen our differentiation and address market
opportunities more effectively. This has resulted in a small reduction in senior staff numbers costing GBP0.3m.
Asia Pacific
Revenue increased by 5% to GBP45.0m (2008: GBP42.9m), and adjusted operating profits increased by 96% to GBP4.9m (2008:
GBP2.5m).
In Australia, we have significantly reduced our overhead base following the restructuring undertaken last
financial year and benefited from the government's stimulus package with a strong workload in the property and
transport sectors. Results are substantially ahead of the prior year and we have a healthy order book and prospect
pipeline, giving us confidence for the year ahead.
In Asia, our results show an improvement over the previous year with a number of important projects won in the
transport sector, particularly with MTR. We have refocused our businesses in China and significantly scaled back
our operations in Vietnam.
Middle East
Revenue increased by 16% to GBP50.7m (2008: GBP43.7m) whilst adjusted operating profits increased by 3% to GBP3.7m
(2008: GBP3.6m).
Our business in the Middle East covers Abu Dhabi, Dubai, Qatar, Bahrain and Saudi Arabia, where we have operated
for over 40 years and have close and longstanding client relationships. During the period we have downsized our
operations in Dubai resulting in redundancy and associated costs of GBP0.9m, but have continued to grow in the other
areas. Whilst the collection of outstanding debt remains challenging, our working capital has reduced in Dubai
since the financial year end.
Board of Directors
Peter Morgan, formerly our Senior Independent Director and Chairman of two of our Board committees, retired from
the Board at the AGM on 23 July and I would like to express the Board's warm appreciation for his greatly valued
contribution to the Group throughout his time with us.
Principal risks and uncertainties
The Group operates a structured risk management and internal audit process which seeks to identify, evaluate and
prioritise risk, review mitigation activities, and audit compliance with the Group's procedures. The principal
risks and uncertainties facing the Group relate to significant changes in market conditions, contractual disputes
and claims, collection of outstanding debt, recruitment and retention of key staff, project execution, and foreign
exchange movements.
Outlook
We have continued to make changes to improve the business and sought to respond effectively to the varying
economic conditions in each of our regions. The purpose of these changes is to improve the operational rigour,
market alignment and differentiation of our operations, all of which will help sharpen our competitive edge for
the future.
Approximately 72% of our revenues are now generated from overseas markets, and derived from four market sectors;
transport, utilities, property and environment. Hyder's combination of international diversity and sector
specialisation equips us well to face the challenges ahead. We have confidence in meeting our expectations for
the remainder of the financial year, with approximately 60% of the next 12 months' forecast revenue secured.
I would like to thank our clients for their support and our staff for their continued efforts in enabling us to
report these good results.
Sir Alan Thomas
Chairman
23 November 2009
Consolidated income statement for the six months ended 30 September 2009 (unaudited)
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
Note GBP'000 GBP'000 GBP'000
--------------------------------------------------
Revenue 2 156,257 151,558 318,970
Cost of sales
Sub-consultant costs (22,026) (24,425) (49,067)
Other operating costs (94,203) (87,193) (190,499)
--------------------------------------------------
Gross profit 40,028 39,940 79,404
Administration expenses (33,231) (33,210) (74,396)
=--------------------------------------------------------------------------------------------------------------------
Group operating profit 2 6,797 6,730 5,008
--------------------------------------------------
=--------------------------------------------------------------------------------------------------------------------
Analysed as:
EBITA (Pre-exceptional items) 8,828 8,936 18,117
Amortisation of intangible assets
- Software (694) (620) (1,289)
- Business combinations (1,337) (1,586) (3,241)
Exceptional items - - (8,579)
--------------------------------------------------
Group operating profit 2 6,797 6,730 5,008
--------------------------------------------------
=--------------------------------------------------------------------------------------------------------------------
Finance costs 3 (1,219) (1,255) (2,129)
Finance income 3 88 198 333
--------------------------------------------------
Profit before taxation 5,666 5,673 3,212
Taxation (969) (607) 291
--------------------------------------------------
Profit for the period 4,697 5,066 3,503
--------------------------------------------------
--------------------------------------------------
Profit attributable to equity holders of the parent 4,697 5,066 3,503
=---------------------------------------------------------------------------------------------------------------------
Earnings per share (pence)
Basic 4 12.26 13.18 9.12
Diluted 4 12.20 13.14 9.10
=---------------------------------------------------------------------------------------------------------------------
Equity - Ordinary 10p shares
Dividends (GBP'000) - Paid 5 1,172 789 1,295
Dividend per share (pence) 5 3.15 2.10 3.45
=---------------------------------------------------------------------------------------------------------------------
Dividends (GBP'000) - Proposed 557 509 1,172
Dividend per share (pence) 5 1.50 1.35 3.15
All activities are continuing.
Adjusted earnings per share is disclosed in Note 4.
Consolidated statement of comprehensive income (unaudited)
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
GBP'000 GBP'000 GBP'000
--------------------------------------------------
Profit for the period 4,697 5,066 3,503
Other comprehensive (expense) / income for the period
Exchange adjustments (2,224) 1,507 12,250
Cash flow hedges recognised 79 44 (506)
Actuarial (loss) /gain on defined benefit pension schemes (3,860) 2,362 (6,242)
Deferred taxation on actuarial loss / (gain) 1,071 (661) 1,644
--------------------------------------------------
Total other comprehensive (expense) / income for the period (4,934) 3,252 7,146
--------------------------------------------------
Total comprehensive (expense) / income for the period
attributable to equity shareholders (237) 8,318 10,649
--------------------------------------------------
--------------------------------------------------
Consolidated statement of changes in equity
(unaudited)
Share Share Retained Other Minority
capital premium earnings reserves Total interests Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
=---------------------------------------------------------------------------------------------------------------------
At 1 April 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 benefit pension
schemes - - 2,362 - 2,362 - 2,362
Deferred tax on actuarial gains - - (661) - (661) - (661)
Share option charges - - 89 - 89 - 89
Cash flow hedges recognised - - - 44 44 - 44
Incentives granted in the period - - - (298) (298) - (298)
ESOP reserve charge - - - 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
New shares issued 3 - - - 3 - 3
Premium on new shares issued - 85 - - 85 - 85
Loss for the period - - (1,563) - (1,563) - (1,563)
Dividends paid - - (506) - (506) - (506)
Actuarial losses on defined benefit pension
schemes - - (8,604) - (8,604) - (8,604)
Deferred tax on actuarial losses - - 2,305 - 2,305 - 2,305
Share option charges - - (79) - (79) - (79)
Deferred tax on share option charges - - (3) - (3) - (3)
Cash flow hedges recognised - - - (550) (550) - (550)
Incentives granted in period - - - (355) (355) - (355)
ESOP reserve charge - - - 103 103 - 103
Exchange adjustments - - - 10,743 10,743 4 10,747
----------------------------------------------------------------------
At 31 March 2009 3,776 28,840 13,556 12,648 58,820 30 58,850
New shares issued 1 - - - 1 - 1
Premium on new shares issued - 20 - - 20 - 20
Profit for the period - - 4,697 - 4,697 - 4,697
Dividends paid - - (1,172) - (1,172) - (1,172)
Actuarial losses on defined benefit pension
schemes - - (3,860) - (3,860) - (3,860)
Deferred tax on actuarial losses - - 1,071 - 1,071 - 1,071
Share option charges - - 12 - 12 - 12
Cash flow hedges recognised - - - 79 79 - 79
Incentives granted in period - - - (84) (84) - (84)
ESOP reserve charge - - - 207 207 - 207
Exchange adjustments - - - (2,224) (2,224) - (2,224)
----------------------------------------------------------------------
At 30 September 2009 3,777 28,860 14,304 10,626 57,567 30 57,597
----------------------------------------------------------------------
----------------------------------------------------------------------
Consolidated statement of financial position for the six months ended 30 September 2009 (unaudited)
As at As at As at
30 30 31
September September March
2009 2008 2009
Note GBP'000 GBP'000 GBP'000
--------------------------------------------------
Non-current assets
Intangible assets 8 44,277 42,987 46,728
Property, plant and equipment 8 11,496 12,825 13,477
Deferred tax assets 13,886 7,531 12,240
--------------------------------------------------
69,659 63,343 72,445
--------------------------------------------------
Current assets
Trade and other receivables 128,134 113,770 138,139
Corporation tax recoverable 498 1,066 1,611
Cash and cash equivalents 14,120 17,230 18,129
--------------------------------------------------
142,752 132,066 157,879
--------------------------------------------------
Current liabilities
Trade and other payables (74,760) (74,775) (93,788)
Current tax liabilities (2,885) (1,110) (1,742)
Borrowings (3,606) (2,387) (2,512)
Provisions 6 (5,045) (2,830) (8,588)
--------------------------------------------------
(86,296) (81,102) (106,630)
--------------------------------------------------
--------------------------------------------------
Net current assets 56,456 50,964 51,249
--------------------------------------------------
Non-current liabilities
Borrowings (26,718) (23,495) (21,346)
Retirement benefit obligations 9 (33,988) (25,077) (34,520)
Provisions 6 (1,271) (328) (1,748)
Deferred tax liabilities (3,671) (3,729) (4,316)
Other non-current liabilities (2,870) (4,411) (2,914)
--------------------------------------------------
(68,518) (57,040) (64,844)
--------------------------------------------------
--------------------------------------------------
Net assets 57,597 57,267 58,850
--------------------------------------------------
--------------------------------------------------
Equity
Called up ordinary share capital 3,777 3,773 3,776
Share premium 28,860 28,755 28,840
Retained earnings 14,304 22,006 13,556
Other reserves 10,626 2,707 12,648
--------------------------------------------------
Equity attributable to equity holders of the parent 57,567 57,241 58,820
Minority interest 30 26 30
--------------------------------------------------
Total equity 57,597 57,267 58,850
--------------------------------------------------
--------------------------------------------------
Consolidated cash flow statement (unaudited)
Six months Six months Year ended
ended 30 ended 30 31 March
September September
2009 2008 2009
Note GBP'000 GBP'000 GBP'000
-----------------------------------------------------
Cash flows from operating activities
Cash (used in) / generated from operations 7(a) (5,532) 8,473 19,535
Interest received 88 198 333
Interest paid (594) (844) (1,546)
Taxation paid (430) (527) (2,850)
-----------------------------------------------------
Net cash (used in) / generated from operating
activities (6,468) 7,300 15,472
-----------------------------------------------------
Cash flows from investing activities
Deferred and contingent consideration paid (1,033) - (3,361)
Acquisition of subsidiaries (net of cash acquired) - (257) -
Proceeds from disposal of property, plant and equipment
(incl. software) 421 194 264
Purchase of property, plant and equipment (incl.
software) (1,452) (4,102) (6,759)
---------------------------------------------------------------
Net cash used in investing activities (2,064) (4,165) (9,856)
-----------------------------------------------------
Cash flows from financing activities
Proceeds on issue of shares 5 67 99
Employee trust purchase of own shares (84) (299) (654)
Repayments of obligations under finance leases (290) (686) (1,854)
Proceeds on issue of new borrowings 18,813 13,322 30,807
Repayment of borrowings (12,780) (12,896) (32,130)
Dividends paid 5 (1,172) (789) (1,295)
-----------------------------------------------------
Net cash generated from / (used in) financing
activities 4,492 (1,281) (5,027)
-----------------------------------------------------
Effects of exchange rate fluctuations on cash and cash
equivalents 31 553 2,717
-----------------------------------------------------
Net (decrease) / increase in cash and cash
equivalents (4,009) 2,407 3,306
-----------------------------------------------------
Cash and cash equivalents at 1 April 18,129 14,823 14,823
-----------------------------------------------------
Cash and cash equivalents at period end 14,120 17,230 18,129
-----------------------------------------------------
-----------------------------------------------------
1. General information
(a) Basis of preparation
This condensed unaudited consolidated financial information for the half year ended 30 September 2009 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
2009, 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 2006 related to reporting under IFRS that the Directors expect to
be applicable as at 31 March 2010. 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 434 of the
Companies Act 2006. The financial information relating to the year ended 31 March 2009 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 2009, as described in those financial statements, with the exception of the changes in accounting policies
noted below.
The Group's significant accounting policies under IFRS are available on the corporate website
www.hyderconsulting.com within the "Investors" section.
IAS 1 (revised 2007) has been applied in the preparation of these condensed consolidated financial statements.
The revised standard requires the presentation of a statement of changes in equity in the primary statements with
the information previously disclosed in a movements in equity note in the financial statements. In addition the
Group has elected to present a separate income statement and statement of comprehensive income. The revised
standard also suggests certain changes in terminology which have been adopted in these condensed consolidated
financial statements. The balance sheet has been renamed statement of financial position and the statement of
recognised income and expense has been renamed statement of comprehensive income.
IFRS 8 replaces IAS 14 Segment Reporting. Under IFRS 8 the Group's operating segments are identified on the basis
of internal reports that are regularly reviewed by the chief operating decision maker to assess the performance of
the Group's components, which are organised based on the geographic location of services that the Group provides.
The Group has assessed the revised requirements of IFRS 8 and concluded that no material change in segmentation is
required.
(c) Exceptional items
Following a review by the Board, in the current period redundancy and other one off costs amounting to GBP1.7m have
been charged to operating profit. In the 30 September 2008 half year report and the 31 March 2009 annual report
redundancy costs classified as exceptional items amounting to GBP560,000, have been reclassified to operating costs
in this half year report. Adjusted operating profit and earnings per share have been restated as a result (Note
4).
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 five main geographical regions, UK, Europe, Australia, Asia 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 Group's revenue is derived from the provision of engineering consultancy services.
(a) Segment revenue
Inter- Six Six months Year
segment months ended ended
revenue ended 30 31 March
30 September
September
2009 2009 2009 2008 2009
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------------------------------------
Australia 36,255 (281) 35,974 35,171 63,748
Asia 9,051 (43) 9,008 7,757 20,087
Asia Pacific 45,306 (324) 44,982 42,928 83,835
Middle East 52,325 (1,639) 50,686 43,679 106,920
UK 46,927 (220) 46,707 52,557 103,306
Germany 14,954 (1,072) 13,882 12,394 24,909
UK / Europe 61,881 (1,292) 60,589 64,951 128,215
------------------------------------------------------------------------------
159,512 (3,255) 156,257 151,558 318,970
------------------------------------------------------------------------------
------------------------------------------------------------------------------
(b) Segment results
Regional operating
profit
Australia 4,464 2,096 3,187
Asia 434 420 1,285
-----------------------------------------------
Asia Pacific 4,898 2,516 4,472
Middle East 3,677 3,600 8,317
UK 1,160 3,330 7,111
Germany (159) 911 635
-----------------------------------------------
UK / Europe 1,001 4,241 7,746
Corporate overheads (1,442) (2,041) (3,707)
-----------------------------------------------
Group adjusted operating profit 8,134 8,316 16,828
Amortisation on business combinations (1,337) (1,586) (3,241)
Exceptional items - - (8,579)
-----------------------------------------------
Group operating profit 6,797 6,730 5,008
-----------------------------------------------
-----------------------------------------------
(c) Total assets
Six Six months Year
months ended ended
ended 30 31 March
30 September
September
2009 2008 2009
GBP'000 GBP'000 GBP'000
-----------------------------------------------
Australia 37,219 33,066 32,768
Asia 18,810 13,884 18,847
-----------------------------------------------
Asia Pacific 56,029 46,950 51,615
Middle East 74,920 68,990 93,922
UK 51,091 54,497 50,288
Germany 30,371 24,972 34,499
-----------------------------------------------
UK / Europe 81,462 79,469 84,787
-----------------------------------------------
212,411 195,409 230,324
-----------------------------------------------
-----------------------------------------------
3. Net finance costs
Six months Six months Year
ended 30 ended 30 ended
September September 31 March
2009 2008 2009
GBP'000 GBP'000 GBP'000
--------------------------------------------------------
Bank borrowings (365) (678) (1,377)
Interest expense on tax balances - - (22)
Finance leases (132) (100) (148)
Unwinding of discounts in provisions (98) (10) (20)
Unwinding of discounts in deferred and contingent
consideration (100) (306) (314)
Net finance cost on pension scheme (524) (161) (248)
--------------------------------------------------------
Finance costs (1,219) (1,255) (2,129)
--------------------------------------------------------
Investment interest income 62 159 268
Interest income received on tax refunds 26 39 65
--------------------------------------------------------
Finance income 88 198 333
--------------------------------------------------------
Net finance costs (1,131) (1,057) (1,796)
--------------------------------------------------------
--------------------------------------------------------
4. Earnings per share
(a) Number of shares
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
----------------- ----------------- ------------------
Weighted average number of shares in issue 38,316,108 38,419,741 38,405,272
Effect of dilution
Share options 172,525 123,405 103,232
----------------- ----------------- ------------------
Weighted average shares (diluted) 38,488,633 38,543,146 38,508,504
----------------- ----------------- ------------------
(b) Earnings used in the calculation of earnings per share
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
GBP'000 GBP'000 GBP'000
----------------- ----------------- ------------------
Profit attributable to equity shareholders 4,697 5,066 3,503
Add back exceptional items - - 8,579
Add back amortisation of intangible assets on business
combinations 1,337 1,586 3,241
Less tax on adjusted items (243) (357) (2,302)
----------------- ----------------- ------------------
Adjusted earnings 5,791 6,295 13,021
----------------- ----------------- ------------------
----------------- ----------------- ------------------
(c) Earnings per share
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
Pence Pence Pence
----------------- ----------------- ------------------
Basic earnings per share 12.26 13.18 9.12
Add back exceptional items - - 22.34
Add back amortisation of intangible assets and business
combinations 3.49 4.13 8.44
Add back tax on adjusted items (0.64) (0.93) (5.99)
----------------- ----------------- ------------------
Adjusted basic earnings per share 15.11 16.38 33.91
----------------- ----------------- ------------------
----------------- ----------------- ------------------
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2009 2008 2009
Pence Pence Pence
----------------- ----------------- ------------------
Diluted earnings per share 12.20 13.14 9.10
Add back exceptional items - - 22.28
Add back amortisation of intangible assets and business
combinations 3.47 4.11 8.42
Add back tax on adjusted items (0.63) (0.92) (5.98)
----------------- ----------------- ------------------
Adjusted diluted earnings per share 15.04 16.33 33.82
----------------- ----------------- ------------------
----------------- ----------------- ------------------
5. Dividends
Six months Six months Year
ended 30 ended 30 ended
September September 31 March
2009 2008 2009
GBP'000 GBP'000 GBP'000
--------------------------------------------------------
Dividends charged to equity in the period 1,172 789 1,295
----------------- ----------------- ------------------
----------------- ----------------- ------------------
Equity - Per Ordinary 10p share
Final dividend paid (pence) 3.15 2.10 2.10
Interim dividend paid (pence) - - 1.35
The directors are proposing an interim dividend of 1.5p pence per share (2008: 1.35 pence). In accordance with
IFRS the dividend has not been recognised in the financial statements but if approved by shareholders will be paid
on 13 January 2010 to shareholders on the register as at 11 December 2009.
6. Provisions
Restructuring Professional Vacant Total
indemnity property
insurance
GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------------------------------
At 1 April 2009 2,859 2,797 4,680 10,336
Exchange adjustments (95) (152) (38) (285)
Charged to the Income Statement 2,017 1,368 316 3,701
Utilised / released to the Income
Statement (3,607) (1,190) (2,737) (7,534)
Amortisation of discount - - 98 98
------------------------------------------------------------------------
At 30 September 2009 1,174 2,823 2,319 6,316
------------------------------------------------------------------------
------------------------------------------------------------------------
At 30 September 2009
Current liabilities 1,174 2,823 1,048 5,045
Non-current liabilities - - 1,271 1,271
------------------------------------------------------------------------
1,174 2,823 2,319 6,316
------------------------------------------------------------------------
------------------------------------------------------------------------
At 30 September 2008
Current liabilities - 2,778 52 2,830
Non-current liabilities - - 328 328
------------------------------------------------------------------------
- 2,778 380 3,158
------------------------------------------------------------------------
------------------------------------------------------------------------
At 31 March 2009
Current liabilities 2,859 2,797 2,932 8,588
Non-current liabilities - - 1,748 1,748
------------------------------------------------------------------------
2,859 2,797 4,680 10,336
------------------------------------------------------------------------
------------------------------------------------------------------------
Restructuring
The provision represents redundancy costs that have not been paid out at the period end.
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, whichever occurs earlier.
7. Notes to the consolidated cash flow statement
(a) Cash flows from operating activities
Six months Six months Year
ended ended ended
30 30 31 March
September September
2009 2008 2009
GBP'000 GBP'000 GBP'000
------------------------------------------
Profit for the financial period 4,697 5,066 3,503
Adjustments for:
Taxation 969 607 (291)
Depreciation 2,009 1,477 3,410
Loss on disposal of property, plant and equipment 649 20 57
Amortisation - Software 694 620 1,289
Amortisation - Business Combinations 1,337 1,586 3,241
Interest receivable (88) (198) (333)
Interest payable and similar charges 1,219 1,255 2,129
Fair value (gain) / loss on financial instruments (199) 77 239
Share option costs 217 236 323
(Decrease) / increase in provisions (4,020) (246) 7,039
Defined benefit scheme charges 1,350 1,923 4,877
Pension scheme curtailments - - (766)
Contributions to defined benefit schemes (5,609) (2,469) (5,080)
Changes in working capital (excluding effects of acquisitions):
Decrease / (increase) in trade and other receivables 9,167 (10,978) (32,522)
(Decrease) / increase in trade and other payables (17,924) 9,497 32,420
------------------------------------------
Cash (used in) / generated from operations (5,532) 8,473 19,535
------------------------------------------
------------------------------------------
(b) Reconciliation of movement in net debt
At 30 At 1 April Non Cash Exchange At 30
September September
2008 2009 Cash flow Movement Movement 2009
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------------------------------------------------------
Cash at bank 17,230 18,129 (4,040) - 31 14,120
-------------------------------------------------------------------------------
Debt due within 1 year (1,067) (1,501) (492) (668) 36 (2,625)
Debt due after 1 year (22,086) (20,238) (5,541) 289 - (25,490)
Finance leases due within 1 year (1,320) (1,011) 250 (187) (33) (981)
Finance leases due after 1 year (1,409) (1,108) 40 (72) (88) (1,228)
-------------------------------------------------------------------------------
(25,882) (23,858) (5,743) (638) (85) (30,324)
-------------------------------------------------------------------------------
(8,652) (5,729) (9,783) (638) (54) (16,204)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
The cash at bank balance includes GBP2.6m that is restricted and not available to the Group for general use.
8. Property, plant and equipment and intangible assets
Property, Intangible
plant and Assets
equipment
GBP'000 GBP'000
-------------------------------------
Net book value
At 1 April 2008 11,142 45,452
Exchange adjustments (32) 1,585
Additions 3,396 872
Disposals (204) (6)
Revaluation - (2,710)
Depreciation and amortisation (1,477) (2,206)
-------------------------------------
At 30 September 2008 12,825 42,987
Exchange adjustments 1,113 6,371
Additions 1,572 1,562
Disposals (100) (5,127)
Revaluation - 3,259
Depreciation and amortisation (1,933) (2,324)
-------------------------------------
At 31 March 2009 13,477 46,728
Exchange adjustments 143 (1,283)
Additions 955 863
Disposals (1,070) -
Depreciation and amortisation (2,009) (2,031)
-------------------------------------
At 30 September 2009 11,496 44,277
-------------------------------------
-------------------------------------
9. Retirement benefit obligations
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 Group's net
liabilities in respect of retirement benefits comprise the following:
As at 30 As at 30 As at 31
September September March
2009 2008 2009
GBP'000 GBP'000 GBP'000
----------------- ----------------- ------------------
AGPS and unfunded Annuitants scheme 27,443 19,922 27,178
Overseas schemes 6,545 5,155 7,342
----------------- ----------------- ------------------
33,988 25,077 34,520
----------------- ----------------- ------------------
----------------- ----------------- ------------------
AGPS and Annuitants scheme As at 30 As at 30 As at 31
September September March
The key assumptions used were: 2009 2008 2009
----------------- ----------------- ------------------
Rate of increase in salaries 3.40% 3.70% 3.20%
Rate of increase to pensions in payment:
- Index linked pensions with max 3% per annum increases 2.60% 3.00% 3.00%
- Other index linked pension 3.40% 3.70% 3.20%
Discount rate 5.60% 6.50% 6.50%
Inflation assumptions 3.40% 3.70% 3.20%
Longevity at age 65 for current pensioners
- Men 22.0 years 21.9 years 22.0 years
- Women 23.9 years 23.8 years 23.9 years
Longevity at age 65 for future pensioners
- Men 23.9 years 23.8 years 23.9 years
- Women 25.8 years 25.7 years 25.8 years
The amounts included in the consolidated statement of
financial position for the AGPS and Annuitants scheme are
as follows:
As at 30 As at 30 As at 31
September September March
2009 2008 2009
GBP'000 GBP'000 GBP'000
----------------- ----------------- ------------------
At 1 April (27,178) (23,159) (23,159)
Current service costs (626) (740) (1,395)
Notional interest on pension
liability (3,269) (3,368) (6,814)
Expected return on plan assets 2,753 3,207 6,542
Contributions by employers 4,705 1,767 3,522
Actuarial gains / (losses) due to:
- Assets 12,582 7,526 (18,909)
- Liabilities (16,409) (5,155) 13,035
----------------- ----------------- ------------------
Deficit in AGPS and Annuitants scheme (27,443) (19,922) (27,178)
----------------- ----------------- ------------------
Related deferred tax asset 5,822 4,217 5,866
----------------- ----------------- ------------------
Net pension deficit (21,621) (15,705) (21,312)
----------------- ----------------- ------------------
----------------- ----------------- ------------------
10. Contingent liabilities
The Group maintains professional indemnity insurance against claims for professional negligence which in the
ordinary course of business have been, or may in the future be, received. The Directors assess each claim and
make provision for legal and settlement costs where, on the basis of advice received, it is considered that a
liability may exist.
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
Directors do not consider any provision is necessary in respect of guarantees and bonds.
11. Cautionary statement
This half yearly financial 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.
12. Further information
An electronic version of this half yearly financial report and 31 March 2009 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.
As reported in the Hyder Consulting PLC Annual Report and Financial Statements 2009, Mr Peter Morgan retired as a
non-executive director on 23 July 2009. There have been no other changes to the Board of directors during the
period or subsequently. 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 2009, which comprises the Consolidated income statement,
the Consolidated statement of comprehensive income, the Consolidated statement of changes in equity, the
Consolidated statement of financial position, the Consolidated cash flow statement, 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 2009 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
23 November 2009
Hyder Consulting PLC
Hyder Consulting (LSE:HYC)
過去 株価チャート
から 6 2024 まで 7 2024
Hyder Consulting (LSE:HYC)
過去 株価チャート
から 7 2023 まで 7 2024
