TIDMHYC
Annual Results
Hyder Consulting PLC (HYC.L)
Final Results Announcement
Annual results for the year ended 31 March 2010
Hyder Consulting, the multi-national advisory and design consultancy, today announces its annual financial results for
the year ended 31 March 2010.
Highlights
* Order book of GBP346m: over 60% of next 12 months' forecast revenue secured
* Revenue GBP308.6m (2009: GBP319.0m)
* Adjusted operating profit up 7% to GBP18.0m (2009: GBP16.8m)*
* Net operating margins of 6.7% (2009: 6.2%)*
* Adjusted diluted earnings per share up 3% to 34.81p (2009: 33.82p)*
* Full year dividend up 33% to 6.0p per share
* Net cash balances of GBP3.6m (2009: net debt GBP5.7m)
* International business generating 71% of revenue (2009: 68%)
* Before amortisation of business combinations and prior year exceptionals
Sir Alan Thomas said:
"I am very pleased to report another year of increased profit and margins, ahead of market expectations, combined with a
strong cash performance.
With approximately 70% of revenue and over 80% of operating profits earned overseas, Hyder is broadly based, both
internationally and across market sectors. This will serve us well as government budgets reduce and client expenditure
shifts from public to private."
Press contacts:
Hyder Consulting PLC
Ivor Catto, Chief Executive Tel: +44 (0)20 7904 9011
Russell Down, Group Finance Director Tel: +44 (0)20 7904 9020
Biddicks
Shane Dolan Tel: +44 (0)20 7448 1000
Chairman's Statement
I am very pleased to report another year of increased profit and margins, ahead of market expectations, combined with a
strong cash performance.
Results
Revenue was GBP308.6m (2009: GBP319.0m), 9% lower than the prior year on a constant currency basis. Net revenue, after
deduction of sub-consultant costs, was GBP266.9m (2009: GBP269.9m).
Adjusted operating profit grew by 7% to GBP18.0m (2009: GBP16.8m), after absorbing GBP3.6m of redundancy and other one-off
costs (2009: GBP0.6m), and after translation foreign exchange gains of GBP1.9m. The net revenue margin, after charging
these costs, grew to 6.7% (2009: 6.2%). Operating profit after exceptional items and amortisation was GBP15.2m (2009:
GBP5.0m).
Profit before tax, exceptional items and amortisation of acquisition intangibles rose by 8% to GBP16.3m (2009: GBP15.0m).
The effective rate of tax on adjusted profits increased to 17.3% (2009: 13.4%), as a result of a greater proportion of
profits earned in tax paying jurisdictions, in particular Australia.
Adjusted fully diluted earnings per share increased by 3% to 34.81p (2009: 33.82p). Fully diluted earnings per share
after exceptional items and amortisation was 28.87p (2009: 9.10p).
Funding
At 31 March 2010 the group had net cash of GBP3.6m (2009: net debt GBP5.7m). Cash balances at the year end amounted to
GBP21.4m with unutilised facilities of GBP39.4m.
The group generated operating cash flow of GBP15.7m (2009: GBP19.5m), after settling prior year restructuring costs of GBP5.6m
and making special pension contributions of GBP3.0m. Cash conversion for the year was 104% before accounting for these
costs. This strong performance is due to the sharpening of commercial performance throughout the group, including a
drive on collections.
Dividend
The directors are pleased to propose a final dividend of 4.5p per share (2009: 3.15p) making a full year dividend of 6p
per share (2009: 4.5p), an increase of 33%. The full year dividend is covered 5.8 times by adjusted fully diluted
earnings per share (2009: 7.5 times).
Operating highlights
Asia-Pacific. Regional revenues grew by 13% to GBP94.8m, whilst operating profits more than doubled to GBP10.5m as a
result both of improved operational efficiency and the restructuring undertaken last year. Operating margins on net
revenue increased to 12.2% (2009: 6.2%). Foreign exchange gains were GBP1.4m. In Australia Hyder is working on a number
of high profile transport and infrastructure alliance contracts, including the West Gate Freeway Upgrade for the
Victoria State Government, the Iluka Road to Woodburn Alliance for the New South Wales State Government and the Hale
Street Bridge for the Queensland State Government. Our property division has performed well, undertaking significant
work on the government's 'Building the Education Revolution' programme. In Hong Kong we have recently secured six
projects on the Mass Transit Railway and increased the efficiency of our remaining transport operations where redundancy
costs were GBP0.3m. Our landscape and planning business (ACLA) has grown in both China and Vietnam.
Middle East. Revenue amounted to GBP93.9m, 12% lower than the prior year with staff numbers reduced by 370 to
approximately 1,200 following the slowdown in Dubai, which now accounts for 30% (2009: 45%) of our Middle East revenues.
Operating profits were GBP7.2m (2009: GBP8.3m), with margins on net revenue of 8.8% (2009: 9.4%), after absorbing redundancy
and other one-off costs of GBP1.3m. In Abu Dhabi, Qatar and Bahrain our longstanding presence has helped us win major
projects there and more recently we have been winning projects in Saudi Arabia, including the tallest building in
Riyadh, CMA Tower. In Dubai, Hyder was the architect and engineer of record for the recently opened Burj Khalifa, the
world's tallest building at 828 metres, and the surrounding infrastructure of Downtown Dubai.
Europe. Regional results were well below the prior year, with operating profits at GBP3.4m (2009: GBP7.7m), largely due to
the economic climate and redundancy and other one-off costs of GBP1.7m. In the UK our transportation business performed
strongly, particularly in the rail sector. Hyder was appointed designer for two Crossrail packages, Whitechapel station
and Victoria Dock portal, and we have worked closely with Carillion on the North London Line. Hyder is the client
representative on the M25 widening DBFO contract and has a number of projects with Transport for London and the UK
Highways Agency. Our utilities business has been appointed on framework contracts for Severn Trent, Welsh Water and
South West Water, although the business performed below expectations as a result of project delays following the AMP5
regulatory review. We have further reorganised our property and environment sectors during the year and results are now
improving. In Germany, where we are now the sixth largest engineering consultancy, our businesses have been merged into
a single Hyder branded company and migrated on to the group's ERP system. We have secured major contracts at Berlin,
Munich and Frankfurt airports, and are growing our presence in rail.
Strategy
Our strategy is to build strong and enduring client relationships in those markets and sectors where we have
demonstrable competitive advantage. We have undertaken performance reviews of all our businesses over the past year and,
following the restructuring in early 2009, have continued to re-shape our operations and to exit those markets and
sectors which do not meet this criterion. We believe we now have strong market positions from which to grow in all the
geographies where Hyder operates.
The effectiveness of this strategy has been evidenced by higher margins and our cash performance over the year.
People
We employ 4,182 people across our regions, approximately 4,000 on a full-time equivalent basis, 500 lower than a year
ago, having adapted quickly to market conditions and sharply focused our operations.
We have maintained recruitment in our targeted sectors, despite some redundancies elsewhere in the group. We place great
emphasis on the continual development of our people and fill vacancies by internal promotions wherever possible.
Outlook
With approximately 70% of revenue and over 80% of operating profits earned overseas, the group is broadly based, both
internationally and across market sectors. This will serve us well as government budgets reduce and client expenditure
shifts from public to private. Our order book has fallen to GBP346m (2009: GBP384m) largely due to Dubai but remains strong
across the group. The board remains confident of further progress in the current financial year for which we have
already secured over 60% of our budgeted revenue.
On behalf of the board, I would like to express our appreciation to all our clients and to thank every member of our
staff for enabling us to report these good results.
Sir Alan Thomas
Chairman
8 June 2010
Business review
Activities
Hyder is a multi-national engineering design and advisory consultancy which operates across five geographical regions
and four market sectors. As one of the world's longest established engineering consultancies we have a history of
projects which go back more than 150 years. Hyder has designed some of the world's most instantly recognised landmarks
including London's Tower Bridge, Sydney Harbour Bridge, the Taiwan High Speed Railway and Berlin's main station. This
year has seen the opening of the Burj Khalifa, the world's tallest building, the design of a new submerged tube tunnel
in Hong Kong and the design of several new interstate highways across Australia.
We have been operating as a multi-national for most of our history and have worked in the Middle East for over 45 years,
Germany for 80 years, Australia for 70 years, and China for 100 years. This helps us better to understand our clients
and meet their needs in these important markets.
Following the restructuring of the group in early 2009 - which closely aligned our structure with our clients and end
markets - our business is managed regionally, with work undertaken in four sectors; transport, utilities, property, and
environment.
Transport: road and rail design and transportation planning for governments and private developers on transport
and infrastructure projects across our office network.
Utilities: advice to national and regional governments in the regulated and non regulated water markets in areas
as diverse as desalination, asset privatisation, and management of scarce energy resources.
Property: the design of tall structures (and the designer of the tallest building in the world); our expertise
includes land development, master planning, architecture and mechanical and electrical works.
Environment: our environmental business is a growing and fundamental part of the group, the need for
sustainability being the case in the majority of the group's projects.
We seek to provide customised and 'differentiated' services to our clients. We have particularly emphasised operational
efficiency and the empowering of our professional staff this year and have sought to sharpen the group's commercial
edge.
Asia-Pacific
Regional revenues amounted to GBP94.8m (2009: GBP83.8m) an increase of 13%. As a result of improvements in staff utilisation
and reductions in overhead costs, operating profits more than doubled to GBP10.5m (2009: GBP4.5m).
Economic stimulus packages and continuing strength in the private sector have meant that the region has continued to
grow. We have concentrated on managing our key client relationships, and growing our market share in selected areas.
In Australia we have secured major projects in the transport sector, where 'alliance contracts', and design and
construction (D&C) contracts are the predominant implementation vehicles. Hyder has earned its reputation working on
seven major alliance contracts with a number of contractors, including the Tulla-Sydney Alliance responsible for the
high profile M80 Ring Road Upgrade, and the design alliance on the Bullaburra Great Western Highway Upgrade.
In property, Hyder's work on 500 schools for the 'Building the Education Revolution' programme underlines our commitment
to making a contribution to society by creating social infrastructure which has a lasting legacy for our clients and
communities. As this programme nears completion we are seeing some signs of private sector property opportunities
increasing.
The supply of clean water and water treatment are high priorities in Australia and Hyder has been appointed the
financier's engineer on a new desalination plant in Victoria; to two wastewater treatment projects in Queensland and to
38 separate categories of the technical water panel of the Department of Sustainability and Environment in Victoria. Our
work on the Adelaide desalination plant has enabled us to generate new opportunities for other sector businesses.
In Hong Kong we have recently secured six contracts from the Mass Transit Railway (MTR) Corporation including the
provision of detailed design services for a new MTR underground station and over-run tunnel.
We have built on our reputation as leaders in immersed tube tunnels through our appointment to the Kai Tak Development
T2 Trunk Road which includes a 2km section in immersed tube tunnel form. We have also been appointed by key client the
Civil Engineering and Development Department on the Hong Kong Harbour Area Treatment Scheme.
Hyder's landscape and master planning business (ACLA) has performed well across Hong Kong, China and Vietnam. Of
particular note was its success in securing the Jiaozhou Three Rivers Restoration project which includes landscape
architectural and water design of the region's three main rivers. Our work on the Hong Kong greening master plan has
continued successfully this year and will run until 2012.
Middle East
Regional revenue was GBP93.9m (2009: GBP106.9m) a decline of 12% due to the reduction in workload in Dubai which accounted
for 30% of Middle East revenues in the year (2009: 45%). Operating profit decreased from GBP8.3m to GBP7.2m and margins
decreased to 7.7% (2009: 7.8%) after charging redundancy and other one-off costs of GBP1.3m associated with the reductions
in staff numbers, largely in Dubai. We retain a significant presence throughout the region and are growing our presence
outside Dubai; we currently employ 1,227 people in the Middle East (2009: 1,599).
Hyder has operated throughout the Middle East for over 45 years and our presence has expanded this year in Abu Dhabi,
Qatar, Bahrain and Saudi Arabia. Across the region our priority is to assist clients with their infrastructure and
development programmes in support of their economic and national development. We have the advantage of longstanding
client relationships as well as a strong professional reputation in high rise structures, highways, infrastructure and
water which we expect to lead to significant opportunities.
In Abu Dhabi our highways expertise is being utilised on the roads and infrastructure design review for the Al Falah
Villages 1-5.
Our track record in the utilities sector has been enhanced through our appointment to the design review, supervision and
detailed design of the wastewater treatment process and all related electro-mechanical works for a new sewage treatment
plant at Falcon City of Wonders in Dubai. In addition we have been commissioned to undertake a number of development
projects for sewerage networks by the Abu Dhabi Sewage Services Company with which we have a relationship of more than
36 years.
The highlight of the year was the opening of Burj Khalifa, the world's tallest building, and the surrounding Downtown
Dubai which covers an area of 12 million square feet. As engineer and architect of record for this prestigious landmark,
Hyder's many innovations included the world record for test piling, the highest electrical substation in the world and
that of the Middle East's largest solar array.
Hyder is deploying its skills and expertise on similar tall building projects such as Tameer Towers in Abu Dhabi,
Pentominium Tower in Dubai and the CMA Tower in Saudi Arabia, and is the leading engineering consultant on tall
buildings in the region.
Our strong long-term client relationships in the Middle East have proved invaluable in managing our working capital
position through the downturn in Dubai. Net working capital balances across our Dubai based clients have reduced over
the year to less than GBP10m.
Our global design centres, where we employ over 200 staff, enable us to provide quality design work in a flexible and
cost-effective manner which is increasingly important in competitive markets.
Europe
Regional revenues fell by 6% this year to GBP120.0m (2009: GBP128.2m) as a result of the economic climate and associated
reductions in staff numbers. Operating profits declined to GBP3.4m (2009: GBP7.7m) due to reduced project margins, and
redundancy and other one-off costs. These costs were associated with refocusing the business on our four core markets
and were charged to operating profit, GBP1.7m (2009: GBP0.6m). Following actions taken in the first half year, results have
improved with operating profits more than doubling in the second half year to GBP2.4m.
In the UK our transport business performed well, with a particularly strong performance in rail. We are one of the
leading suppliers for design services on Crossrail, Europe's largest construction project, having been appointed to two
major contracts: the design of Whitechapel station and the Royal Victoria Dock Portal. Our profile in rail has also
been enhanced through our work with Carillion on the prominent North London Line project which is nearing completion.
In the highways sector Hyder is the client's representative on the M25 widening DBFO contract, and our transportation
planning business has grown. We have been appointed to a new five year Transport for London (TfL) framework contract
which, combined with our success on its Directorate of Traffic Operations traffic signals framework and structures
inspections framework, maintains our coverage of almost all areas of work identified in the Mayor's Transport Strategy.
In addition, our appointment to framework contracts in many London boroughs, our work for Westminster City Council and
our engagement on a number of London 2012 Olympic projects means we are playing a major role in creating
vital significant infrastructure across the capital in the run up to the Olympic Games and beyond.
Hyder has retained a strong profile in the water sector with AMP5 framework contracts for South West Water, Welsh Water,
and Severn Trent Water. We are also providing support to Thames Water on a number of major projects including Crossrail,
Beckton Wastewater Treatment Works and at Crossness Wastewater Treatment Works where we have had a presence for over 40
years. However, this has been a challenging year in the water market with a lull in activities due to the sector's
capital approval cycle.
In property, Hyder has identified a considerable amount of land for commercial and residential development highlighted
by its work on Barking Riverside. We are working on the infrastructure design, building on our long association with the
area and with our client, Barking Riverside Ltd. Our relationships with contractors are helping us secure urban
regeneration contracts, some of national scale. Coupled with underlying demand for social and private residential
development, these should provide us with attractive opportunities in the future.
In Germany, we have restructured our business this year, and have merged and rebranded all entities as Hyder. We are
now the sixth largest engineering consultancy and are utilising our expertise and strong local client relationships to
pursue opportunities with our Middle East and UK regions. Hyder has augmented its reputation as a leading consultant of
airside design services by winning a number of important projects including: a contract to provide design services for
taxiways, aprons and utilities at Berlin Schönefeld; an appointment to design the drainage system for a third runway at
Munich Airport and our continuing work at Frankfurt Airport.
Hyder's profile in planning and building major navigable waterways has been boosted through a number of contracts, of
which the most important is to oversee the site management and construction supervision of the Midland Canal and Elbeu
overpass. We have also been appointed to important roles on the high speed Ebensfeld-Erfut line and the Salzgitter light
railway.
In the property sector results are improving. Hyder is currently working on three industrial plants for Volkswagen, and
three new power plants for Vattenfall.
People and culture - investing in our people
Hyder is a 'people' business and we strive to recruit and retain the highly talented people we need to serve our clients
and constantly improve our performance. We now employ approximately 4,200 people from diverse backgrounds across all our
regions. During 2009-10 our staff retention rates have improved although numbers reduced by 11% overall as a result of
market conditions primarily in Dubai and the UK. However, we have maintained recruitment in targeted growth sectors -
mainly in the rail sector and in Australia and China.
Our central human resource objectives are to manage for performance, engendering a culture of empowerment and
accountability; and to train and develop our talent through on-the-job and 'active' learning, enabling us to improve
staff retention and succession planning.
Upholding equal opportunities
We aspire to best practice in managing our people and ensure equal opportunities and anti-discrimination within the
jurisdictions where we operate. Local legislation lays down minimum standards which, where appropriate, we aim to
surpass. We utilise a comprehensive framework of policies which seek to balance the group's and individuals' needs.
Amongst these, Hyder's diversity and inclusion policy underlines the group's commitment to valuing and promoting
diversity and inclusion in all areas of recruitment, training and promotion, thereby enabling equality of opportunity
and elimination of discrimination.
Supporting our employees' training and development
We place great emphasis on the continual development of our people in their everyday work in all our regions. In
addition we have undertaken a number of people development initiatives in 2009-10 including:
* Key account management training
* Project manager training and internal accreditation
* A revised and upgraded annual professional development review (PDR)
* Director training to improve business execution
* Intranet development to help staff collaborate, share knowledge and develop their skills
* Upgraded graduate assessment and development programmes
Encouraging employee mobility
To ensure that our people benefit from our multi-national presence and diverse career opportunities, we encourage
mobility between the regions and seek to fill vacancies by internal promotions wherever possible. Career progression has
been highlighted through guidance and tools provided to support the progress through four career paths namely:
technical; project management; general management and key account management.
Staff engagement - bucking the trend
We recognise the clear link between staff engagement and performance/retention. Our second employee engagement survey,
completed in December 2009, generated both a greater response rate (78.5%) and good results overall compared to those
achieved in the previous year. This contrasts with employee research in general which shows that employee engagement has
fallen.
Highlights of Hyder's survey were that:
* 90% are happy to go the extra mile for Hyder
* 92% say their team works well together
* 98% agree their work helps Hyder achieve its objectives
It is encouraging that even in the challenging conditions of the past year, our people showed great commitment to the
company and performed strongly.
Remuneration
Last year we introduced performance-related bonuses across the group, which we have sought to build upon by ensuring
employees have clearcut objectives closely aligned with Hyder's business strategy.
Awards - Defined by our success
Hyder achieved distinction with a number of prestigious awards in 2009-10 which demonstrate the dedication and
creativity of our people, including:
Sustain Magazine - Public Realm Award 2010: which recognised our work in helping to make South Milton Sands a valuable
community facility and a stimulus to local economic regeneration. It builds on our success on winning Sustain Magazine's
International Project of the Year 2009.
MEP Middle East Consultancy of the Year: which recognised our role on a range of significant projects in the region
including the Grand Mosque in Abu Dhabi; Pentominium Tower in Dubai; Michael Schumacher Tower in Abu Dhabi; Gary Player
golf course in Abu Dhabi; Burj Khalifa and the Dubai Fountain, the world's largest, and also tallest, performing
fountain.
British Expertise International Award - Innovation: which acknowledged our work on Burj Khalifa.
British Expertise - Young Engineer of the Year Award: presented to Robert Baker from our Manila office.
Bundesvereinigung der Straßenbau- und Verkehrsingenieure e.V. (BSVI) Award - Sustainable Road Design 2010: for our work
on the A113 landscaping.
RoSPA Gold Medal Award: a third gold medal for our sustained achievement in health and safety performance in the UK.
Engineers Australia Awards Engineering Excellence Awards (Sydney) - Engineering Reports Award: which recognised our work
on the Woodburn to Ballina report as part of Pacific Highway Upgrade.
Concrete Institute of Australia - Excellence in Concrete - Engineering Projects Award: awarded for our design work on
Eastlink.
Engineers Australia Awards Engineering Excellence Awards (Victoria) - Infrastructure Award: awarded for our work on
Eastlink.
Australian Consulting Engineers Association Awards for Excellence - Transport and Civil Infrastructure Gold Award of
Merit: awarded for our work on EastLink.
NSW Urban Taskforce Development Excellence Award - Residential Apartment Development: awarded for our work on Jacksons
Landing, Sydney.
NSW Urban Taskforce Development Excellence Award - Development of the Year: awarded for our work on Jacksons Landing,
Sydney.
Australian Consulting Engineers Association Awards for Excellence - Building Projects Certificate of Recognition:
awarded for our work on 167 Turbot St.
NCE/ACE Consultants of the Year Awards - finalist for International Firm of the Year and Major Firm of the Year awards:
having won the award for International Consultant of the Year in 2007 we were pleased to be nominated as a finalist for
both these awards this year.
Financial Review
Revenue and profit
Revenue for the year was GBP308.6m (2009: GBP319.0m) a decline of 3%. Net revenue, after deduction of sub-consultant costs,
fell by 1% to GBP266.9m (2009: GBP269.9m). On a constant currency basis revenue and net revenue fell by 9% and 7%
respectively. The decline in revenue reflects the reduced scale of operations in the Middle East, largely in Dubai
together with the group's focus on four core markets and the consequent closure of operations and associated staff
redundancies.
In presenting the group's adjusted operating profit below, amortisation of intangible assets arising on business
combinations and prior year exceptional items have been excluded as the directors believe that this assists with
understanding the underlying performance of the group:
2010 2009
GBP'000 GBP'000
Group operating profit 15,177 5,008
Add back:
Amortisation on business combinations 2,825 3,241
Exceptional items - 8,579
---------------------------
Adjusted operating profit 18,002 16,828
Net finance costs (1,710) (1,796)
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Adjusted profit before taxation 16,292 15,032
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Adjusted operating profit increased 7% to GBP18.0m (2009: GBP16.8m). our Australian business performed particularly
strongly following the restructuring in the prior year and consequent improvements in operational efficiency. Operating
profit is reported after absorbing GBP3.6m (2009: GBP0.6m) of redundancy and other one-off costs, following rigorous
reviews in each of our businesses to improve performance. In the prior year GBP0.6m of redundancy costs have been
reclassified against operating profit. Foreign exchange gains of approximately GBP1.9m have been recognised this year
from translation of overseas profits in Australia (GBP1.4m), and the Middle East (GBP0.5m). The adjusted operating
margin on net revenue increased to 6.7% from 6.2%. Adjusted profit before taxation increased 8% to GBP16.3m (2009:
GBP15.0m).
Exceptional and one-off items
There were no exceptional items in the current year. However GBP3.6m of one-off costs have been absorbed within adjusted
operating profit. These relate primarily to redundancy costs of GBP3.4m incurred in the UK (GBP1.5m), the Middle East
(GBP1.1m), Asia (GBP0.5m), and Germany (GBP0.3m).
In the second half of the previous year exceptional costs of GBP8.6m were incurred in reshaping the group to align more
closely with our markets and clients. Redundancy costs in the UK of GBP0.6m incurred in the first half of the prior year
have been reclassified in these accounts and absorbed within adjusted operating profit.
Taxation
The taxation charge for the year was GBP2.3m (2009: credit GBP0.3m), equating to a tax rate of 17.1% (2009: credit 9.1%).
The tax rate on adjusted profit before tax was 17.3% (2009: 13.4%).
The increase in the tax rate is a result of a change in the mix of the group's profits, with a lower proportion of the
profit being earned in zero rate jurisdictions, primarily the UAE. The current rate is lower than the UK tax of 28%
reflecting lower tax rates in the Middle East, and research and development tax credits in both the UK and Australia.
Earnings per share
Basic earnings per share increased to 29.08p (2009: 9.12p); diluted earnings per share increased to 28.87p (2009: 9.10p)
reflecting exceptional items related to the restructuring that were incurred in the prior year. The weighted average
number of ordinary shares during the year was 38.4m (2009: 38.4m). After adjusting for the amortisation of intangible
assets arising on business combinations and prior year exceptional items fully diluted earnings per share increased by
3% to 34.81p (2009: 33.82p).
Dividends
In recognition of the group's strong financial performance and its net cash position, the board has proposed a 33%
increase in the full year dividend to 6.0p (2009: 4.5p). A final dividend of 4.5p per share (2009: 3.15p) is proposed
for the year to 31 March 2010 which, if approved by the shareholders, will be paid on 6 August 2010 to shareholders on
the register at 9 July 2010. The full year dividend is covered 5.8 times by adjusted fully diluted earnings per share
(2009: 7.5 times).
Acquisitions
As a result of the group's previous acquisitions the charge for amortisation of intangible assets from business
combinations amounted to GBP2.8m (2009: GBP3.2m). No acquisitions have been made in the current financial year, although the
group maintains a pipeline of opportunities.
Capital structure
During the year the company issued 615,473 10p ordinary shares in relation to exercised share options, including 575,473
by the Chairman. As at 31 March 2010 there were 38,370,320 (2009: 37,754,847) fully paid ordinary shares in issue.
During the year to 31 March 2010 shareholders' equity increased by 15% to GBP67.6m (2009: GBP58.9m) primarily reflecting
retained earnings for the year. Net cash balances amounted to GBP3.6m at 31 March 2010 (2009: net debt GBP5.7m).
Shareholder return
Equity has increased during the year to GBP67.6m (2009: GBP58.9m), equating to a net asset value of 176p per share (2009:
156p). The closing share price on 31 March 2010 was 255p per share (2009: 76p) representing a market capitalisation of
GBP96.4m (2009: GBP28.7m).
Retirement benefit obligations
The group operates both defined benefit and defined contribution schemes as detailed in Note 6.
The principal defined benefit scheme is the AGPS, for which the sponsoring employer is Hyder Consulting (UK) Limited.
The scheme was closed to new members in 2001 and had 201 active members at 31 March 2010; a pensionable salary freeze is
currently in place until March 2012. The gross deficit in the scheme at 31 March 2010 reduced to GBP25.8m (2009: GBP26.5m).
The reduction in the deficit reflects better than expected asset returns, special contributions of GBP3m in the year,
offset by actuarial losses due to reduced discount rates.
A triennial valuation of the scheme as at 1 April 2008 was concluded during the year, which will result in the UK
company contributing an additional GBP0.5m in the next financial year and GBP0.8m per annum thereafter. Further
contributions of up to GBP0.8m per annum are payable from 1 April 2010 contingent on the cash flows generated by the UK
business. There are no group guarantees in place in relation to the AGPS.
The key assumptions in valuing the deficit are disclosed in Note 6. The sensitivities of the AGPS scheme liabilities to
changes in these assumptions are shown below:
Assumption Change in assumption Indicative effect on scheme
liabilities
=----------------------------------------------------------------------------------------------------------------------
Discount rate Increase / decrease by 0.5% Decrease / increase by 9%
Rate of inflation Increase / decrease by 0.5% Increase / decrease by 6%
Longevity Increase by 1 year Increase by 3%
The net finance costs for pension schemes amounted to GBP1.0m in the year (2009: GBP0.2m).
The board acknowledges that valuations of defined benefit schemes under IAS 19 are inherently volatile, and will
continue to take action where appropriate to reduce the AGPS deficit.
Overseas post employment benefit liabilities relate principally to benefits payable on termination to staff in the
Middle East and reduced slightly to GBP7.0m (2009: GBP7.3m) as a result of the reduction in staff numbers during the year.
Financing
At the year-end the group had net cash balances of GBP3.6m (2009: net debt GBP5.7m), despite funding the costs to
restructure the business and additional pension contributions. Cash balances increased to GBP21.4m (2009: GBP18.1m) and
total borrowings reduced to GBP17.8m (2009: GBP23.9m) providing substantial headroom against available facilities.
The group's principal banking facilities totalling GBP46.5m are with HSBC and Barclays in the UK which include revolving
credit facilities of GBP20m and GBP18m expiring in April 2012 and February 2013 respectively, and other long term facilities
of GBP8.5m. In addition the group has access to a number of overseas and on demand facilities of a further GBP6m, and
leasing facilities of GBP4.7m. Total facilities amount to GBP57.2m, all of which are unsecured.
Under the terms of its principal banking facilities the group is required to operate within certain financial covenants.
In line with market practice these are related to net debt (including guarantee liabilities), EBITDA, debt service costs
and interest cover. The group had significant headroom within all of these covenants throughout the year.
The net finance cost of the group amounted to GBP1.7m (2009: GBP1.8m) reflecting increased charges for financing costs on
pension schemes (GBP0.8m) offset by reduced costs on bank borrowings (GBP0.9m).
Cash flow
Net cash amounted to GBP3.6m at 31 March 2010 (2009: net debt GBP5.7m).
2010 2009
GBP'000 GBP'000
-------------------------------
Net debt 1 April (5,729) (11,125)
Cash from operations 15,702 19,535
Interest (753) (1,213)
Tax (498) (2,850)
Acquisition consideration (1,168) (3,361)
Capital expenditure (net) (2,438) (6,495)
Dividend (1,730) (1,295)
FX / other 247 1,075
-------------------------------
Net cash / (debt) 31 March 3,633 (5,729)
-------------------------------
-------------------------------
Cash generated from operating activities was GBP15.7m (2009: GBP19.5m), after funding special contributions of GBP3m to the
AGPS, and settlement of GBP5.6m in relation to the prior year restructuring of the group. The proportion of EBITDA
converted into operating cash flow in the year was 104% (2009: 88%), before accounting for these amounts.
Gross capital expenditure reduced in the year to GBP3.6m from GBP6.8m, which was unusually high in the prior year due to
office moves in Australia, China and the Middle East. Deferred consideration paid in the year of GBP1.2m (2009: GBP3.4m)
primarily related to the full earn out payment due for the ACLA acquisition in 2006.
Principal risks and uncertainties
The group faces a number of risks, which are regularly monitored by the board. Risk management and internal control
systems provide a means of identifying, evaluating and managing the significant risks facing the group. However
these systems can only operate to mitigate risk rather than eliminate it completely. The group's principal risks are as
follows:
Funding
The group recognises the importance of cash management and regularly forecasts global cash requirements and monitors
debt and work in progress levels with clients. In the current economic environment there is an increased credit risk,
which is mitigated by developing close working relationships with clients and seeking advance payments where possible.
Clear guidance and expectation with regard to the management of working capital has been communicated throughout the
group highlighting the importance of everyone's role in this important area. The group maintains strong relationships
with its principal bankers.
Contractual disputes and claims
Whilst the risk of claims and pressure to assume more onerous contractual terms can increase in an economic downturn,
established procedures exist to deal with them and minimise any exposure. Should disputes arise wherever possible they
are dealt with at a local level, to protect and enhance our relationship with our clients and suppliers. Where this is
not possible disputes are escalated to region or group management for resolution as swiftly as possible. It is the
group's policy to mitigate its exposure to key contractual risks through insurance at commercially acceptable rates for
appropriate limits of indemnity.
Key markets, sectors and clients
The group's workload is dependent on economic factors in the markets in which we operate and the relationships built up
with our clients. Economic pressures have led to significant changes in investment models and public and private
expenditure.
Our strategy of service differentiation, key client management and international growth has enabled the group to avoid
dependence on individual markets, sectors or clients, thereby maintaining our resilience in the current economic
climate.
Competitors
The group operates in a competitive business environment and whilst we are broadly spread internationally we recognise
that the actions of competitors or potential competitors may affect our business. In order to mitigate the effects of
competition we seek to build on our reputation and to differentiate ourselves through our service offering, outstanding
people and strong client management.
Resources
The group's staff are its key resource and the recruitment and retention of high quality people are crucial to our
future success. Our human resources function plays a key role in succession planning, staff development and recruitment
and retention strategies.
The maximisation of staff utilisation rates, and the ability to manage high quality staff resources is critical to the
group's ability to win and execute projects and future profitability. We regularly review utilisation rates throughout
our business and monitor these against pre-set targets taking prompt action where appropriate.
Foreign exchange movements
Established procedures exist to monitor cash flow, currency and interest rate risks in accordance with policies set by
the board.
Approximately 30% of the group's revenue is generated in sterling. The remaining balance is generated in the Middle
East (mainly the UAE), Australia, Germany and Hong Kong where revenue is normally denominated in the relevant local
currency. The revenue and costs of our international operations generally arise in the same currency and therefore the
exposure to exchange fluctuations is usually not significant and consequently not hedged. Where a mismatch does exist
it is generally priced for in our customer contracts. Most of our overseas operations maintain local currency overdraft
and bonding facilities, which provide partial mitigation against balance sheet risk. In spite of fluctuations in
exchange rates which occur from time to time, it is not considered necessary to hedge the net investment in overseas
subsidiaries at this time.
Integrity and sustainability of IT networks and core business systems
The group's IT networks and core business systems are maintained and supported to provide assurance on data integrity
and minimise the risk of data loss. An upgrade of our core business systems is being progressively implemented on a
regional basis using an in-house project team and third party consultants as appropriate. This regional implementation
programme is designed to minimise the potential for disruption in the business.
Health and safety
Health and safety is an essential element of all Hyder's operations. As a group we are committed to conducting our
activities in such a way as to ensure the health and safety of our employees and anyone who may be affected by our
operations. We will comply with all relevant legislation and aim continually to improve our health and safety
performance with all employees expected to contribute to this goal.
Ivor Catto Russell Down
Chief Executive Group Finance Director
Consolidated income statement for the year ended 31 March 2010
2010 2009
Note GBP'000 GBP'000
---------------------------------
Revenue 1(a) 308,606 318,970
Cost of sales
Sub-consultant costs (41,684) (49,067)
Other operating costs (189,527) (190,499)
---------------------------------
Gross profit 77,395 79,404
Administration expenses (62,218) (74,396)
---------------------------------
Group operating profit 1(b) 15,177 5,008
---------------------------------
=----------------------------------------------------------------------------------------------------------------------
Analysed as:
EBITA (Pre-exceptional items) 19,734 18,117
Amortisation of intangible assets
- Software (1,732) (1,289)
- Business combinations (2,825) (3,241)
Exceptional items - (8,579)
--------------------------------
Group operating profit 1(b) 15,177 5,008
=----------------------------------------------------------------------------------------------------------------------
Finance costs 2 (2,178) (2,129)
Finance income 2 468 333
---------------------------------
Profit before taxation 13,467 3,212
Taxation (2,300) 291
---------------------------------
Profit for the year 11,167 3,503
---------------------------------
---------------------------------
Profit attributable to equity holders of the parent 11,167 3,503
=----------------------------------------------------------------------------------------------------------------------
Earnings per share (pence)
Basic 3 29.08 9.12
Diluted 3 28.87 9.10
=----------------------------------------------------------------------------------------------------------------------
Equity - Ordinary 10p shares
Dividends (GBP'000) - Paid 4 1,730 1,295
Dividend per share (pence) 4 4.65 3.45
=----------------------------------------------------------------------------------------------------------------------
Dividends (GBP'000) - Proposed 1,701 1,172
Dividend per share (pence) 4 4.50 3.15
All activities are continuing.
Consolidated statement of comprehensive income
2010 2009
GBP'000 GBP'000
--------------------------
Profit for the year 11,167 3,503
Other comprehensive (expense) / income for the year
Foreign exchange movements (net of taxation) 1,029 12,250
Cash flow hedges (net of taxation) 49 (506)
Actuarial loss on defined benefit pension schemes (net of taxation) (2,528) (4,598)
--------------------------
Total other comprehensive (expense) / income for the year (1,450) 7,146
--------------------------
Total comprehensive income for the year attributable to equity shareholders 9,717 10,649
--------------------------
--------------------------
Consolidated statement of changes in equity
Share Share Retained Other Total Non Total
capital premium earnings reserves contro-
lling
interest
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 6 - - - 6 - 6
Premium on new shares issued - 173 - - 173 - 173
Loss for the year - - 3,503 - 3,503 - 3,503
Dividends paid - - (1,295) - (1,295) - (1,295)
Actuarial loss on defined benefit pension - - (4,598) - (4,598) - (4,598)
schemes (net of taxation)
Share option charges - - 10 - 10 - 10
Deferred tax on share option charges - - (3) - (3) - (3)
Cash flow hedges (net of taxation) - - - (506) (506) - (506)
Employee trust purchase of own shares - - - (653) (653) - (653)
LTIP reserve charge - - - 225 225 - 225
Foreign exchange movements (net of taxation) - - - 12,250 12,250 4 12,254
---------------------------------------------------------------------
At 31 March 2009 3,776 28,840 13,556 12,648 58,820 30 58,850
New shares issued 61 - - - 61 - 61
Premium on new shares issued - 441 - - 441 - 441
Profit for the year - - 11,167 - 11,167 - 11,167
Dividends paid - - (1,730) - (1,730) - (1,730)
Actuarial loss on defined benefit pension - - (2,528) - (2,528) - (2,528)
schemes (net of taxation)
Share option charges - - 189 - 189 - 189
Cash flow hedges (net of taxation) - - - 49 49 - 49
Employee trust purchase of own shares - - - (84) (84) - (84)
LTIP reserve charge - - - 205 205 - 205
Non controlling interest acquired - - - - - (30) (30)
Foreign exchange movements (net of taxation) - - - 1,029 1,029 - 1,029
---------------------------------------------------------------------
At 31 March 2010 3,837 29,281 20,654 13,847 67,619 - 67,619
---------------------------------------------------------------------
---------------------------------------------------------------------
Consolidated statement of financial position as at 31 March 2010
2010 2009
GBP'000 GBP'000
--------------------------------
Non current assets
Intangible assets 42,231 46,728
Property, plant and equipment 10,456 13,477
Deferred tax assets 10,834 12,240
--------------------------------
63,521 72,445
--------------------------------
Current assets
Trade and other receivables 115,636 138,139
Corporation tax recoverable 1,141 1,611
Cash and cash equivalents 21,399 18,129
--------------------------------
138,176 157,879
--------------------------------
Current liabilities
Trade and other payables (70,160) (93,788)
Current tax liabilities (4,653) (1,742)
Borrowings (2,630) (2,512)
Provisions (4,650) (8,588)
--------------------------------
(82,093) (106,630)
--------------------------------
--------------------------------
Net current assets 56,083 51,249
--------------------------------
Non current liabilities
Borrowings (15,136) (21,346)
Retirement benefit obligations (33,527) (34,520)
Provisions (1,090) (1,748)
Deferred tax liabilities (1,014) (4,316)
Other non current liabilities (1,218) (2,914)
--------------------------------
(51,985) (64,844)
--------------------------------
--------------------------------
Net assets 67,619 58,850
--------------------------------
--------------------------------
Equity
Called up ordinary share capital 3,837 3,776
Share premium 29,281 28,840
Retained earnings 20,654 13,556
Other reserves 13,847 12,648
--------------------------------
Equity attributable to equity holders of the parent 67,619 58,820
Non controlling interest - 30
--------------------------------
Total equity 67,619 58,850
--------------------------------
--------------------------------
Consolidated cash flow statement
2010 2009
Note GBP'000 GBP'000
--------------------------------
Cash flows from operating activities
Cash generated from operations 5(a) 15,702 19,535
Interest received 226 333
Interest paid (979) (1,546)
Taxation paid (498) (2,850)
--------------------------------
Net cash from operating activities 14,451 15,472
--------------------------------
Cash flows from investing activities
Deferred and contingent consideration paid (1,168) (3,361)
Proceeds from disposal of property, plant and equipment (incl. 1,158 264
software)
Purchase of property, plant and equipment (incl. software) (3,596) (6,759)
--------------------------------
Net cash used in investing activities (3,606) (9,856)
--------------------------------
Cash flows from financing activities
Proceeds on issue of shares 476 99
Employee trust purchase of own shares (84) (654)
Repayments of obligations under finance leases (1,124) (1,854)
Proceeds on issue of new borrowings 25,245 30,807
Repayment of borrowings (31,257) (32,130)
Dividends paid 4 (1,730) (1,295)
--------------------------------
Net cash used in financing activities (8,474) (5,027)
--------------------------------
Increase in cash and cash equivalents 2,371 589
--------------------------------
Effect of exchange rate changes on cash and cash equivalents 899 2,717
--------------------------------
Net increase in cash and cash equivalents 3,270 3,306
--------------------------------
Cash and cash equivalents at 1 April 18,129 14,823
--------------------------------
Cash and cash equivalents at 31 March 21,399 18,129
--------------------------------
--------------------------------
Reconciliation of net cash / (debt)
2010 2009
Note GBP'000 GBP'000
--------------------------------
Increase in cash and cash equivalents 2,371 589
Decrease in debt 6,249 2,532
Effect of exchange rate changes 742 2,275
--------------------------------
Increase in net cash / reduction in net debt during the year 9,362 5,396
Net debt at 1 April (5,729) (11,125)
--------------------------------
Net cash / (debt) at 31 March 5(b) 3,633 (5,729)
--------------------------------
--------------------------------
Notes to the Financial Statements
1. Segmental analysis by location of operations
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the board that makes strategic decisions.
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, Asia-Pacific, the Middle East, and Europe. 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-segment Year ended Year ended
revenue 31 March 31 March
2010 2010 2010 2009
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------------------------------------
Australia 76,225 (296) 75,929 63,748
Asia 18,913 (48) 18,865 20,087
--------------------------------------------------------------
Asia-Pacific 95,138 (344) 94,794 83,835
Middle East 96,461 (2,602) 93,859 106,920
UK 96,378 (453) 95,925 103,306
Germany 25,104 (1,076) 24,028 24,909
--------------------------------------------------------------
Europe 121,482 (1,529) 119,953 128,215
--------------------------------------------------------------
313,081 (4,475) 308,606 318,970
--------------------------------------------------------------
--------------------------------------------------------------
(b) Segment results
Regional operating profit
Australia 9,865 3,187
Asia 595 1,285
-------------------------
Asia-Pacific 10,460 4,472
Middle East 7,150 8,317
UK 3,127 7,111
Germany 271 635
-------------------------
Europe 3,398 7,746
Corporate overheads (3,006) (3,707)
-------------------------
Group adjusted operating profit 18,002 16,828
Amortisation on business combinations (2,825) (3,241)
Exceptional items - (8,579)
-------------------------
Group operating profit 15,177 5,008
-------------------------
-------------------------
(c) Total assets
Year ended Year ended
31 March 31 March
2010 2009
GBP'000 GBP'000
-------------------------
Australia 41,892 32,768
Asia 18,856 18,847
-------------------------
Asia-Pacific 60,748 51,615
Middle East 69,744 93,922
UK 43,376 50,288
Germany 27,829 34,499
-------------------------
Europe 71,205 84,787
-------------------------
201,697 230,324
-------------------------
-------------------------
2. Net finance costs
2010 2009
GBP'000 GBP'000
-------------------------
Bank borrowings (485) (1,377)
Interest expense on tax balances (13) (22)
Finance leases (222) (148)
Interest rate financial instruments (259) -
Unwinding of discounts on provisions (185) (20)
Unwinding of discounts on contingent consideration - (314)
Net finance cost on pension scheme (1,014) (248)
-------------------------
Interest payable and similar charges (2,178) (2,129)
-------------------------
Investment interest income 191 268
Interest income received on tax refunds 35 65
Unwinding of discounts on contingent consideration 242 -
-------------------------
Interest receivable 468 333
-------------------------
Net finance costs (1,710) (1,796)
-------------------------
-------------------------
3. Earnings per share
(a) Number of shares
2010 2009
----------------------------
Weighted average number of shares in issue 38,389,312 38,405,272
Effect of dilution
Share options 284,285 103,232
----------------------------
Weighted average shares (diluted) 38,673,597 38,508,504
----------------------------
(b) Earnings used in the calculation of earnings per share
2010 2009
GBP'000 GBP'000
----------------------------
Profit attributable to equity shareholders 11,167 3,503
Add back exceptional items - 8,579
Add back amortisation of intangible assets on business combinations 2,825 3,241
Less tax on adjusted items (526) (2,302)
----------------------------
Adjusted earnings 13,466 13,021
----------------------------
----------------------------
(c) Earnings per share
2010 2009
Pence Pence
----------------------------
Basic earnings per share 29.08 9.12
Add back exceptional items - 22.34
Add back amortisation of intangible assets and business combinations 7.36 8.44
Less tax on adjusted items (1.37) (5.99)
----------------------------
Adjusted basic earnings per share 35.07 33.91
----------------------------
----------------------------
2010 2009
Pence Pence
----------------------------
Diluted earnings per share 28.87 9.10
Add back exceptional items - 22.28
Add back amortisation of intangible assets and business combinations 7.30 8.42
Less tax on adjusted items (1.36) (5.98)
----------------------------
Adjusted diluted earnings per share 34.81 33.82
----------------------------
----------------------------
4. Dividends
2010 2009
GBP'000 GBP'000
----------------------------
Dividends charged to equity in the year 1,730 1,295
----------------------------
----------------------------
Equity - Per Ordinary 10p share
Final dividend paid (pence) 3.15 2.10
Interim dividend paid (pence) 1.50 1.35
The directors are proposing a final dividend of 4.5 pence per share (2009: 3.15 pence). In accordance with IFRS the
dividend has not been recognised in the Financial Statements but if approved by shareholders will be paid on 6 August
2010 to shareholders on the register as at 9 July 2010.
5. Notes to the Consolidated cash flow statement
(a) Cash flows from operating activities
2010 2009
GBP'000 GBP'000
----------------------------
Profit for the financial year 11,167 3,503
Adjustments for:
Taxation 2,300 (291)
Depreciation 3,731 3,410
Amortisation - Software 1,732 1,289
Amortisation - Business Combinations 2,825 3,241
Interest receivable (468) (333)
Interest payable and similar charges 2,178 2,129
----------------------------
EBITDA 23,465 12,948
Loss on disposal of property, plant and equipment 732 57
Fair value gain on financial instruments (183) 239
Share option costs 421 323
(Decrease) / increase in provisions for exceptional items (5,644) 6,919
Increase in other provisions 1,048 120
Defined benefit scheme charges 3,131 4,877
Pension scheme curtailments - (766)
Defined benefit schemes - special contributions (3,000) -
Defined benefit schemes - normal contributions (5,204) (5,080)
Changes in working capital:
Decrease / (increase) in trade and other receivables 23,093 (32,522)
(Decrease) / increase in trade and other payables (22,157) 32,420
----------------------------
Cash generated from operations 15,702 19,535
----------------------------
----------------------------
(b) Reconciliation of movement in net funds / (debt)
At 1 April Non Cash Exchange At 31 March
2009 Cash flow Movement Movement 2010
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------------------------------------------
Cash at bank 18,129 2,371 - 899 21,399
---------------------------------------------------------------------------------
Debt due within 1 year (1,501) 553 (890) 34 (1,804)
Debt due after 1 year (20,238) 5,459 890 15 (13,874)
Finance leases due within 1 year (1,011) 1,124 (950) 11 (826)
Finance leases due after 1 year (1,108) - 63 (217) (1,262)
---------------------------------------------------------------------------------
(23,858) 7,136 (887) (157) (17,766)
---------------------------------------------------------------------------------
(5,729) 9,507 (887) 742 3,633
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
6. Retirement benefit obligations
AGPS and Annuitants scheme
The key assumptions used were: 2010 2009
----------------------------
Rate of increase in salaries 3.80% 3.20%
Rate of increase to pensions in payment:
- Index linked pensions with max 3% per annum 2.60% 3.00%
increases
- Other index linked pension 3.55% 3.20%
Discount rate 5.60% 6.50%
Inflation assumptions 3.80% 3.20%
Longevity at age 65 for current pensioners
- Men 22.1 years 22.0 years
- Women 24.0 years 23.9 years
Longevity at age 65 for future pensioners
- Men 24.0 years 23.9 years
- Women 25.9 years 25.8 years
The assets in the scheme and the expected rates of return were:
Long term rate Value at 31 Long term rate Value at 31
of return March 2010 of return March 2009
expected at 31 expected at 31
March 2010 March 2009
% per annum GBP'000 % per annum GBP'000
------------------------------------------------------------------
Equities 8.30 71,421 8.00 53,880
Bonds 5.50 30,023 5.20 21,360
Other 0.50 328 0.50 474
------------ -----------
Total market value of assets 101,772 75,714
Present value of scheme liabilities (127,571) (102,239)
------------ -----------
Deficit in the scheme (25,799) (26,525)
Present value of unfunded Annuities scheme (688) (653)
------------ -----------
Deficit in UK based schemes (26,487) (27,178)
Related deferred tax asset 5,658 5,866
------------ -----------
Net pension deficit (20,829) (21,312)
------------ -----------
------------ -----------
7. Financial information
The information within this final results announcement does not constitute statutory accounts within the meaning of
section 435 of the Companies Act 2006 and should be read in conjunction with the group's statutory accounts for the year
ended 31 March 2010. The statutory accounts for the financial year ended 31 March 2010 will be delivered to the
Registrar of Companies following the company's annual general meeting. The auditors have given an unqualified report on
those accounts which does not contain an emphasis of matter paragraph or any statement under section 498 (2), (3) or (4)
of the Companies Act 2006. The company's annual report and accounts for the financial year ending 31 March 2010 is
expected to be posted to shareholders on 29 June 2010 and will be available for viewing on the company's website at
www.hyderconsulting.com thereafter.
8. Responsibility Statement
The responsibility statement below has been prepared in connection with and is included in the company's full annual
report and accounts for the year ended 31 March 2010. Certain parts of that report are not included within this final
results announcement:
"The directors confirm that to the best of their knowledge:
* the group and company financial statements in this Annual Report, which have been prepared in accordance with
IFRS and UK GAAP respectively, give a true and fair view of the assets, liabilities, financial position and
profit or loss of the group and the company taken as a whole;
* the management report (which comprises the Chairman's statement and the Directors' Report), includes a fair
review of the development and performance of the business and the position of the group and the company taken as
a whole, together with a description of the principal risks and uncertainties that they face. "
9. Cautionary Statement
This final results announcement contains 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 expressed or implied within any forward-looking statement. Any forward-looking statements reflect knowledge
and information available at the date of preparation of this final results announcement and the company assumes no
obligation to update or revise any forward-looking statement, resulting from new information, future events or
otherwise. Liability arising from anything in this final results announcement shall be governed by English law. Nothing
in this final results announcement should be construed as a profit forecast.
Non statutory information - Summary of five year trading results
31 March 2010 31 March 2009 31 March 31 March 31 March
2008 2007 2006
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------------------------------------------
Consolidated income statement
Revenue 308,606 318,970 233,672 203,145 171,314
Net revenue 266,922 269,903 196,907 167,445 139,213
Operating profit before 18,002 16,828 15,037 11,401 8,380
amortisation and other adjustments
Amortisation of goodwill and (2,825) (3,241) (1,802) (1,407) (671)
intangibles
Exceptional items and other - (8,579) 180 4,338 2,057
adjustments
------------------------------------------------------------------------
Profit before interest and 15,177 5,008 13,415 14,332 9,766
taxation
Net finance costs (1,710) (1,796) (667) (983) (1,427)
------------------------------------------------------------------------
Profit before taxation 13,467 3,212 12,748 13,349 8,339
------------------------------------------------------------------------
------------------------------------------------------------------------
=----------------------------------------------------------------------------------------------------------------------
Consolidated statement of
financial position
Goodwill and other intangibles 42,231 46,728 45,452 18,046 12,332
Fixed assets 10,456 13,477 11,142 9,443 8,364
Deferred tax 10,834 12,240 8,559 12,560 15,171
Current assets 138,176 157,879 119,407 96,671 81,171
------------------------------------------------------------------------
201,697 230,324 184,560 136,720 117,038
Current liabilities (82,093) (106,630) (71,781) (63,471) (54,213)
------------------------------------------------------------------------
Total assets less current 119,604 123,694 112,779 73,249 62,825
liabilities
Non current liabilities (51,985) (64,844) (63,045) (47,315) (54,874)
------------------------------------------------------------------------
Net assets 67,619 58,850 49,734 25,934 7,951
------------------------------------------------------------------------
------------------------------------------------------------------------
Called up share capital 3,837 3,776 3,770 3,585 3,266
Share premium account 29,281 28,840 28,667 21,262 12,515
Retained earnings 20,654 13,556 15,939 2,437 (8,232)
Other reserves 13,847 12,648 1,332 (1,592) 72
------------------------------------------------------------------------
Total shareholders' equity 67,619 58,820 49,708 25,692 7,621
Non controlling interest - 30 26 242 330
------------------------------------------------------------------------
Total equity 67,619 58,850 49,734 25,934 7,951
------------------------------------------------------------------------
------------------------------------------------------------------------
=----------------------------------------------------------------------------------------------------------------------
Statistics
Adjusted net operating margin % 6.74 6.23 7.63 6.81 6.02
Adjusted diluted earnings per p 34.81 33.82 33.36 26.49 18.86
share
Basic earnings per share p 29.08 9.12 30.91 32.44 21.44
Dividends per ordinary share p 6.00 4.50 3.00 2.00 1.25
Average number of employees Number 4,360 4,643 4,257 3,798 3,203
Net funds / (debt) GBP'000 3,633 (5,729) (11,125) 8,221 6,214
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
