RNS Number:4562Z
Hyder Consulting PLC
07 June 2004

                          Hyder Consulting PLC (HYC.L)
              Preliminary results for the year ended 31 March 2004

           (Hyder Consulting is an international engineering design,
                advisory and specialist management consultancy)
Key points

   *Turnover for the 12 months has grown to #122.3m
   *Operating profit for the 12 months up 89%
   *Profit before tax, exceptional items and goodwill amortisation up 167%
   *Solid sales order book growth to #168m (2003: #158m)
   *Successful integration of infill acquisitions - strategy to continue
   *Maiden dividend recommended

    #m                              2004             2003             2003
                                            Non-statutory    Statutory (1)
    Turnover                       122.3            115.2             50.5
    Operating profit                 3.4              1.8              2.1
    Adjusted profit before tax       2.4              0.9              1.6
    (2)
    Profit before tax                2.2              1.5              2.2

 1.The statutory figures for the comparative period to 31 March 2003
   include only five months trading post acquisition of Hyder Consulting
   Holdings Limited.

 2. Before exceptional items and goodwill amortisation.

Chairman, Sir Alan Thomas said: "We have improved our operating margin, our
order book is good and there is considerable further potential to grow
shareholder value."
Chief Executive, Tim Wade commented: "The platform for future profit growth is
largely in place. We are earning more of our income from higher margin advisory
services whilst pushing more work through our fixed cost base. The market
indicators in our major regions remain positive and our strategic acquisition
programme should enable us to make further advances."

Press Contacts
Tim Wade, Chief Executive, Hyder Consulting PLC
Tel: +44 (0)20 7904 9011

Simon Hamilton-Eddy, Financial and Commercial Director, Hyder Consulting PLC
Tel: +44 (0)20 7904 9011

Shane Dolan, Biddicks
Tel: +44 (0)20 7443 1000

        These are our first full year's results since the acquisition of Hyder
        Consulting Holdings Ltd and its subsidiaries (HCHL) on 22 October 2002.
        I am pleased that I am able to report improved results for the year to
        31 March 2004, and that the Board is recommending a maiden dividend.

        The statutory figures for the comparative period to 31 March 2003
        include only five months trading for HCHL and in order to enable
        meaningful comparison, non-statutory information is set out on the final
        page as if the acquisition had taken place on 1 April 2000.

        Results

        A year ago I reported that the three main objectives of the Group's
        turnaround programme were to maintain a strong order book; to improve
        margins; and to contain and, in due course, eliminate losses in Hong
        Kong.

        Our order book at year end was #168m (2003: #158m). The increase would
        have been #10m greater had it not been for adverse foreign exchange
        currency movements during the year. Turnover was up 6% at #122.3m (2003
        non-statutory: #115.2m). Profit before taxation, goodwill amortisation
        and exceptional items was #2.4m for the year (2003 non-statutory:
        #0.9m). Profit after tax was #2.2m (2003 non-statutory: #1.0m). The
        corporation tax charge of #8,000 is low largely as a consequence of the
        tax credits in the UK and Germany, a zero tax rate in the Middle East
        and brought forward tax losses elsewhere.

        The improvement in operating performance was due to the reduction of
        losses in Hong Kong following the restructuring there and also increased
        operating profits in the UK and Australia. Considerable further progress
        has been made in resolving outstanding claims and completing
        unprofitable contracts.

        Certain exceptional non-recurring items were included in operating costs
        including, in particular, #0.1m relating to the restructuring in Hong
        Kong; establishing a provision of #0.5m for claims not yet notified to
        us to cover higher 'excess' levels which professional indemnity insurers
        are imposing, and #0.2m in connection with the balance sheet
        restructuring to enable dividends to be paid. #0.4m was incurred in
        running down loss-making operations in South East Asia. The amortisation
        of negative goodwill of #1m largely offset these exceptional costs.

        As at 31 March 2004 net assets were #15.4m (2003: #14.7m) and net debt
        #3.4m (2003 restated: #1.4m). Working capital increased due to expansion
        in the Middle East and a lower level of year end advance payments from
        certain public sector clients. There were a number of capital
        transactions during the year: #6m of loan notes were repaid to the
        shareholders of HCHL as part of its acquisition; we acquired the
        remaining minorities in our German subsidiary; two small acquisitions
        were made in Australia; and we raised #1m by the issue of new shares.

        Dividend

        It is proposed that a dividend of 0.4p per share be paid on 10 August
        2004 in respect of the year to 31 March 2004 to shareholders on the
        register as at 9 July 2004.

        Strategy

        The main elements of our strategy are unchanged. In our key account
        management programme we are seeking to develop, in a systematic way,
        close and long term relationships with our clients. Secondly, we are
        seeking to migrate more of our clients to higher added value advisory
        work. Thirdly, we are extending the application of best practice across
        all the Group's operations, functions and territories.

        We have begun our programme of strategic infills with the acquisition of
        two specialist consultancies in Australia. More of these strategic
        infills are being investigated elsewhere. These carefully targeted
        acquisitions will help to achieve critical mass and to strengthen our
        advisory capability and market presence.

        Pension Scheme (FRS17)

        The deficit net of deferred tax under FRS17 rules as at 31 March 2004
        was #20.2m (2003: #22.3m).

        The Board acknowledges that valuations under FRS17 are inherently
        volatile. On the advice of our actuaries we have taken a number of steps
        to address the deficit over time. Further action to reduce the deficit
        will be taken as necessary.

        Current Trading and Outlook

        The first half of the year is traditionally not as strong as the second
        half but we have made a satisfactory start to trading in the current
        year. Conditions in most of our markets remain firm and our order book
        is good.

        In the UK, which accounts for approximately half of our turnover, we
        hope to benefit from the latest round of framework contracts from water
        and sewerage companies with awards expected in the first quarter of
        2005. Though the highways sector is expected to be more subdued in the
        year ahead, there is underlying pressure to improve the UK's
        transportation infrastructure more generally.

        In Germany, we expect another satisfactory performance despite difficult
        market conditions. The EU accession countries continue to provide
        attractive opportunities.

        The high price of oil should help to sustain demand for our services in
        the Middle East. The 17% decline in the local US$ based currencies has
        tended to mask last year's excellent order performance.

        We have cut losses substantially in Hong Kong and remain confident of
        moving into profitability this year. We have also made useful progress
        in establishing a stronger foothold in China which we regard as
        important to us in the long term.

        In South East Asia we are in the process of running down our local
        offices and future projects in the region will be secured via key
        clients or local partners.

        The market in Australia is forecast to remain strong and we expect
        another year of profit improvement in part from on-going organic growth
        and in part from recent acquisitions.

        Overall, we expect another year of advance for the Group and believe
        that there is considerable further potential to improve our profit
        margin and to grow shareholder value.

        I would like to thank our clients, our partners and all members of our
        staff for their valued contribution and for their teamwork which has
        made possible so many worthwhile achievements over the past year.

        Sir Alan Thomas
        Chairman
        7 June 2004

        Review of Activities

        We have made good progress in the year with our turnaround programme,
        having more than doubled operating margins to 2.6%. We still have
        considerable scope for further improvement.

        The main contributors to our progress to date have been the application
        of our best practice regime combined with the elimination and turnaround
        of loss-making operations. As we continue our drive for margin growth by
        increasing our advisory and other higher margin services, increasing the
        volume of work through our fixed cost base, and by making further
        strategic acquisitions we expect to be able to make further advances.

        UK / Europe

        Turnover increased to #75.7m (2003 non-statutory: #71.6m) and operating
        profit to #4.4m (2003 non-statutory: #3.4m).

        Our UK / Europe region business made further good progress in improving
        margins, performing strongly in both water and transportation. In both
        sectors our key client marketing strategy, with the likes of Transport
        for London, South West Water and Thames Water plus key contractors, has
        made an important contribution. The award of a number of Route
        Management Strategy projects for important transport corridors in the
        north of England, including the M6 north of Birmingham, provides strong
        forward workload.

        Significant project wins included the third PSP (Principal Support
        Provider) contract from Defence Estates for US Air Force bases in the
        UK, the Glasgow Strategic Drainage Plan, the M40 Junction 4 Early
        Contractor Involvement project and further work associated with the
        regeneration of the Barking Reach area of the Thames Gateway.

        Our German business, Acerplan, performed well despite continued market
        weakness. The rail sector again provided some attractive commissions
        including a Euro4 million project for the design of fireproofing measures
        in underground structures.

        The acquisition of the remaining minorities in Acerplan will facilitate
        greater integration with the rest of the business. It also provides a
        sound base for future growth and acquisitions in this important European
        market.

        We are also well positioned, with local strategic partners, in a number
        of the countries joining the EU in 2004 and 2007. In the final quarter
        we secured a number of EU-funded highways projects in Bulgaria and
        Romania.

        Middle East

        Turnover increased to #20.5m (2003 non-statutory: #16.4m) whilst annual
        operating profits remained constant at close to #1m. The translation
        effect of the falling US$ meant that the results were 17% less than they
        would have been at prior year exchange rates.

        The region is going through a major growth spurt, fuelled by world oil
        prices. As well as major investments in commercial property and tourism,
        principally in Dubai, there is a general move to upgrade infrastructure
        to meet the demands of population growth.

        In the property sector, notable new project wins included five 50 storey
        residential towers at Jumeirah Beach Residence in Dubai, the Central
        Bank of Kuwait's new headquarters building, the Museum of the Islamic
        Arts in Doha and design and site supervision for Burj Dubai
        infrastructure, a major new mixed use development which will feature the
        world's tallest building.

        Our Abu Dhabi and Al Ain offices, which are more focused on
        infrastructure projects, remain exceptionally busy. During the year we
        won a two year highways maintenance project with the Abu Dhabi
        Municipality, major irrigation and wastewater network upgrading projects
        and an advisory project in Al Ain aimed at increasing private sector
        involvement and introducing new management practices in the water
        sector.

        Asia Pacific

        Turnover fell marginally to #26.2m (2003 non-statutory: #27.2m). This
        reflects the depressed Hong Kong market and the on-going reduction of
        low margin site work. The operating loss was reduced to #0.3m (2003
        non-statutory: #1.9m).

        In Australia good progress is being made to grow a business that is both
        profitable and sustainable. Thanks to the acquisitions of Jeff Moulsdale
        and Associates and Adamus Consulting Practice, we have moved forward our
        strategy of offering a full service property and infrastructure
        capability to compete with the best available domestically and
        internationally. My congratulations to the teams that earned two
        Australian Engineering Excellence Awards in 2003.

        Major new projects won during the year included the structural review of
        West Gate Bridge in Melbourne and transport surveying and modelling for
        the privately financed Mitcham to Frankston Tollway in Victoria.
        The Hong Kong business has been scaled back to a level more appropriate
        to market demand and is now closer to break-even. Having seen our
        largest ever commission, the West Rail project, open to the public in
        December 2003, we have been active in projects associated with East
        Rail. We also won a three year term consultancy for geotechnical
        services for the Hong Kong Housing Authority.

        The Hong Kong office remains pivotal to supporting our growth in
        mainland China where we have expanded our representative offices. We won
        further projects associated with the Guangzhou Metro and breakthrough
        projects in the water and environment markets.

        In South East Asia operations have been scaled back to the minimum
        necessary to maintain a credible presence. Future projects will be
        carried out with local partners or key clients.

        Corporate Overheads

        Corporate overheads have increased to #1.9m (2003 non-statutory: #1.4m).
        This reflects increased costs resulting from the Company being fully
        listed and an increased investment in risk management aimed at reducing
        Professional Indemnity insurance costs.

        Staff

        Our employees have worked tremendously hard to help us achieve a number
        of our business goals and I would like to take this opportunity to thank
        them all for their continued professionalism and commitment.

        As our principal asset, we are committed to helping our people at all
        levels to have fulfilling careers and to develop their professional
        skills and experience. For example, I am delighted that we have been
        able to place nearly 100 people on secondments outside of their home
        country during the year. Within the UK, we are committed to achieving
        Investor in People status.

        Tim Wade
        Chief Executive
        7 June 2004

Consolidated profit and loss account for the year ended 31 March 2004

                                         Note        31 March 2004          31 March 2003
                                                          #'000                  #'000
                                                   --------------  ----  ---------------
Turnover including share of joint
venture                                                 122,943                 50,525
Less; Share of turnover of joint
venture                                                    (600)                   (64)
                                                   --------------        ---------------

Turnover                                 1a&b           122,343                 50,461
--------------------------------------  ---------  --------------  ----  ---------------
Amortisation of positive goodwill                           (83)                   (11)
Amortisation of negative goodwill                         1,063                    332
Other operating costs (before
exceptional items)                                     (119,535)               (49,007)
Exceptional items                           2              (784)                   307
                                                   --------------        ---------------
Net operating costs                                    (119,339)               (48,379)
--------------------------------------  ---------  --------------  ----  ---------------

Group operating profit                                    3,004                  2,082

Share of joint venture                                      365                      1
                                                   --------------        ---------------
Operating profit including share of
joint venture                                             3,369                  2,083

Exceptional item
Loss on termination of business             2              (419)                     -
                                                   --------------        ---------------
Profit on ordinary activities before
interest                                                  2,950                  2,083

Interest receivable                                         130                    485
Interest payable                                           (859)                  (377)
                                                   --------------        ---------------
Profit on ordinary activities before
taxation                                  1c              2,221                  2,191

Taxation                                   5                 (8)                  (514)
                                                   --------------        ---------------
Profit on ordinary activities after
taxation                                                  2,213                  1,677
Minority interests                                          (50)                   (95)
                                                   --------------        ---------------

Profit for the financial year                             2,163                  1,582

Dividends                                                   (98)                     -
                                                   --------------        ---------------
Retained profit for the financial
year                                                      2,065                  1,582
                                                   ==============        ===============
Earnings per share (undiluted)             3               9.02p                 10.78p
                                                   ==============        ===============
Earnings per share (diluted)               3               8.94p                 10.76p
                                                   ==============        ===============

Earnings per share before
exceptional items and goodwill
(undiluted)                                3               9.95p                  6.50p
                                                   ==============        ===============
Earnings per share before
exceptional items and goodwill
(diluted)                                  3               9.86p                  6.49p
                                                   ==============        ===============


        Statement of group total recognised gains and losses

                                                       2004               2003
                                                      #'000              #'000
                                                 ------------  ----  -----------
        Profit for the financial year                 2,163              1,582
        Translation difference on foreign            (1,476)               206
        exchange                                 ------------        -----------
        Total gains for the year                        687              1,788
                                                 ============        ===========

                                                     2004         2003
                                                    #'000        #'000
                                               ------------  -----------

Profit for the financial year                       2,163        1,582
Dividends                                             (98)           -
                                               ------------  -----------
Retained profit for the financial year              2,065        1,582

Translation difference taken to reserves           (1,476)         206
Issue of ordinary share capital for the                 -        1,458
acquisition of HCHL
Issue of ordinary shares for acquisition of
German minority                                        28            -
interests
Premium on ordinary shares issued for the
acquisition of                                        217            -
German minority interests
Issue of ordinary shares for acquisitions             115        4,310
Premium on ordinary shares issued for                 841          138
acquisitions
Capital reduction:
- Deferred share cancellation                      (7,332)           -
- Share premium cancellation                       (8,763)           -
- Creation of profit and loss reserve              16,095            -
Shares to be issued from the acquisition of             -           17
HCHL                                           ------------  -----------
Net increase in shareholders' funds                 1,790        7,711

Shareholders' funds at 1 April                     13,508        5,797
                                               ------------  -----------
Shareholders' funds at 31 March                    15,298       13,508
                                               ============  ===========


Reconciliation of movements in group shareholders' funds for the year ended 31
March 2004

        Balance sheet as at 31 March 2004

                                        Group                      Company
                                   2004       2003             2004       2003
                        Note      #'000      #'000            #'000      #'000
                                ---------  ---------  ----  ---------  ---------
        Fixed assets
        Intangible
        assets
        - Goodwill                1,931        181                -          -
        - Negative               (1,037)      (980)               -          -
        Goodwill
        Tangible                  8,101      9,063                -          -
        assets
        Investments                 174        220           14,790     13,090
        Interests in
        joint
        ventures
        - Share of                  (91)      (421)               -          -
        gross
        liabilities
        - Transfer to                91        421                -          -
        provisions              ---------  ---------        ---------  ---------
                                  9,169      8,484           14,790     13,090
                                ---------  ---------        ---------  ---------

        Current
        assets
        Debtors                  49,542     53,103              515        182
        Cash at bank              6,507     13,825               58      5,317
        and in hand             ---------  ---------        ---------  ---------
                                 56,049     66,928              573      5,499

        Creditors:
        amounts                 (31,073)   (46,536)          (2,373)    (6,807)
        falling due             ---------  ---------        ---------  ---------
        within one
        year
        Net current
        assets /                 24,976     20,392           (1,800)    (1,308)
        (liabilities)           ---------  ---------        ---------  ---------

        Total assets
        less current             34,145     28,876           12,990     11,782
        liabilities             ---------  ---------        ---------  ---------

        Creditors:
        amounts                  (9,951)    (3,779)               -          -
        falling due
        after more
        than one year

        Provisions for
        liabilities              (8,815)   (10,391)               -          -
        and                     ---------  ---------        ---------  ---------
        charges
        Net assets       1d      15,379     14,706           12,990     11,782
                                =========  =========        =========  =========

        Capital and
        reserves
        Called up                 2,445      9,628            2,445      9,628
        share capital
        Share                         -      7,694                -      7,694
        premium
        Shares to be                  -         17                -         17
        issued
        Capital                      80         80               80         80
        redemption
        reserve
        Profit and               12,773     (3,911)          10,465     (5,637)
        loss account            ---------  ---------        ---------  ---------
        Shareholders'
        funds (equity            15,298     13,508           12,990     11,782
        interests)
        Equity
        minority
        interests               22         1,095            -          -
        Non-equity              59         103              -          -
        minority                ---------  ---------        ---------  ---------
        interests                15,379     14,706           12,990     11,782
                                 
                                =========  =========        =========  =========



              Consolidated cash flow statement                                                           
                                                                          Note    2004       2003        
                                                                                             (restated)  
                                                                                  #'000      #'000       
                                                                                                         
              Net cash inflow from operating activities                    4a     95         7,512       
              Returns on investment and servicing of finance                      (469)      108         
              Taxation repaid / (paid)                                            181        (510)       
              Capital expenditure and financial investment                        (652)      (34)        
              Acquisitions and disposals                                          (1,019)    1,402       
              Cash flow before financing                                          (1,864)    8,478       
              Financing                                                           (5,205)    (639)       
              (Decrease) / increase in cash during the year                       (7,069)    7,839       
              Reconciliation of net cash flow to movement in net funds                                   
                                                                                                         
              Net (debt) / cash at start of the year                       4b     (1,367)    5,625       
              (Decrease) / increase in cash in the year                           (7,069)    7,839       
              Cash outflow from repayment of debt                          4b     6,161      777         
              Other non cash movements                                                                   
                   Loan notes issued                                       4b     -          (6,000)     
                   Finance leases                                          4b     (886)      (446)       
                                                                                  (3,161)    7,795       
                                                                                                         
              Loan and finance leases acquired with acquisition                   -          (8,982)     
              Exchange adjustments                                         4b     (223)      (180)       
              Net debt at end of the year                                  4b     (3,384)    (1,367)    

        Deferred consideration of #1,816,000 included in net debt at 31 March
        2003 has been reclassified as an external creditor.

 Notes to the financial statements

 1. Segmental analysis by geographical area

     (a) Turnover by origin 
 
                                                             2004       2004      2003     2003
                                                            #'000      #'000     #'000    #'000
                        Continuing operations                                                    
                              UK and Continental Europe               75,672              32,734 
                              Middle East                             20,520              7,126  
                              Asia Pacific                  26,751               10,665          
                                   Share of joint venture   (600)                (64)            
                                                                      26,151              10,601 
                                                                                                 
                        Turnover                                      122,343             50,461 
 

     (b) Turnover by destination 
                                                                                                 
                                                             2004       2004      2003     2003
                                                            #'000      #'000     #'000    #'000
                        Continuing operations                                                    
                              UK and Continental Europe               72,696              28,142 
                              Middle East                             21,524              6,895  
                              Asia Pacific                  28,723               15,488          
                                   Share of joint venture   (600)                (64)            
                                                                      28,123              15,424 
                                                                                                 
                        Turnover                                      122,343             50,461 
 

     (c) Profit on ordinary activities before taxation 
                                                                   2004       2004     2003    2003
                                                                  #'000      #'000    #'000   #'000
                  Continuing operations                                                              
                        UK and Continental Europe                           4,441              2,235 
                        Middle East                                         954                387   
                        Asia Pacific                               (689)               (721)         
                             Share of joint venture                365                 1             
                                                                            (324)              (720) 
                                                                            5,071              1,902 
                  Operating profit exceptional items                                                 
                       UK and Continental Europe                   (409)               307           
                       Asia Pacific                                (375)               -             
                                                                            (784)              307   
                  Amortisation of positive goodwill                         (83)               (11)  
                  Amortisation of negative goodwill                         1,063              332   
                  Corporate overheads                                       (1,898)            (447) 
                  Post-operating profit exceptional item                    (419)              -     
                  Net interest (payable) / receivable                       (729)              108   
                  Profit on ordinary activities before taxation                                      
                                                                            2,221              2,191 
 

(d)     Net assets 
                                                                                   
                                                                 2004      2003    
                                                                 #'000     #'000   

                                     UK and Continental Europe   12,000    17,356  
                                     Middle East                 604       382     
                                     Asia Pacific                2,775     (3,032) 
                                     Total net assets            15,379    14,706  
 
 
2.     Exceptional items 
                                                                         2004      2003  
                                                                        #'000      #'000 
                              Operating profit exceptional items                         
                              Net amounts recovered from liquidation    -          307   
                              Re-organisation costs                     (51)       -     
                              Re-structuring costs                      (233)      -     
                              Establishment of IBNR provision           (500)      -     
                                                                        (784)      307   
                              Post-operating profit exceptional item                     
                              Loss on termination of business           (419)      -     
                              Total exceptional items                   (1,203)    307   
 
The loss on termination of business of #419,000 was incurred as a result of the termination of operations in South
East Asia. No amounts have been charged or credited for taxation in relation to this loss.
 
 
3.     Earnings per share 
                                                       Before                                            Before
                             Exceptional items   exceptional items             Exceptional items   exceptional items
                                and goodwill        and goodwill                  and goodwill        and goodwill
                                amortisation        amortisation                  amortisation        amortisation 
                      Total                                             Total                                         
                       2004        2004                2004              2003         2003                2003 
  Profit after tax                                                                                                    
  and minority        2,163        (223)              2,386             1,582          628                 954 
  interests                                                                                                           
  (#'000)                                                                                                             
  Basic diluted                                                                                                       
  and adjusted        2,163        (223)              2,386            1,582           628                 954 
  earnings                                                                                                            
  attributable to                                                                                                     
  shareholders                                                                                                        
  (#'000)                                                                                                             
  Basic earnings      9.02p        (0.93p)            9.95p           10.78p         4.28p               6.50p 
  per share                                                                                                           
  Diluted earnings    8.94p        (0.92p)            9.86p           10.76p         4.27p               6.49p 
  per share                                                                                                           
 

                                                                                                   
                                                                                 2004          2003
                                                                               Number        Number

                     Weighted average number of ordinary shares            23,976,026    14,680,714
                     Dilutive shares to be issued                                   -        26,202
                     Dilutive ordinary shares                                 234,489             -
                     Diluted weighted average number of ordinary shares    24,210,515    14,706,916
 
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted
average number of shares during the year.
 
Diluted earnings per share is calculated by adjusting earnings attributable to ordinary shareholders and the weighted
average number of ordinary shares in issue on the assumption of conversion of all dilutive share options in issue.
Supplementary basic and diluted earnings per share have been calculated to exclude the effect of goodwill
amortisation and exceptional items. The adjusted numbers have been provided in order that the effects on reported
earnings can be fully appreciated.

 
4.     Analysis of cash flows for headings netted in the cash flow statement 
 
       Net cash inflow from operating activities

                                                                                2004       2003
                                                                                #'000      #'000

                    Group operating profit                                      3,004      2,083   
                    Net amortisation of intangible fixed assets                 (980)      (321)   
                    Depreciation of tangible fixed assets                       2,301      691     
                    Loss / (profit) on sale of tangible fixed assets            2          (64)    
                    (Increase) / decrease in amounts recoverable on contracts   (1,822)    1,798   
                    Decrease in fixed asset investments                         46         -       
                    (Increase) / decrease in external debtors                   (4,373)    3,015   
                    Increase in external creditors                              2,828      1,588   
                    Decrease in provisions                                      (1,394)    (1,278) 
                                                                                (388)      7,512   
                    Other items affecting cash flows:                                              
                         Fair value amendments                                  902        -       
                         Post-operating profit exceptional items                (419)      -       
                    Net cash inflow from operating activities                   95         7,512   
 

b)     Reconciliation of movement in net debt 
                                                                                                                      
                          At 1 April 2003          Cashflow   Non cash movement     Exchange movement    At 31 March 
                          (restated)                                                                            2004 
                          #'000                    #'000      #'000                 #'000                #'000 
  Cash in hand and at     13,825                   (7,023)     -                    (295)                6,507        
  bank                                                                                                                
  Overdraft               (261)                    (46)        -                    39                   (268)        
                          13,564                   (7,069)     -                    (256)                6,239        
  Loan Notes              (6,000)                  6,000       -                    -                    -            
  Debt due within 1 year  (5,116)                  27          5,000                (11)                 (100)        
  Debt due after 1 year   (2,772)                  (630)       (5,000)              45                   (8,357)      
  Finance leases due      (622)                    674         (573)                (3)                  (524)        
  within 1 year                                                                                                       
  Finance leases due      (421)                    90          (313)                2                    (642)        
  after 1 year                                                                                                        
                          (14,931)                 6,161       (886)                33                   (9,623)      
                          (1,367)                  (908)       (886)                (223)                (3,384)      
 
Deferred consideration of #1,816,000 included in net debt at 31 March 2003 has been reclassified as an external
creditor.
 
 
5.     Taxation 
 
The tax charge for the year of #8,000 (2003: #514,000) represents an effective rate of 0.4% (2003: 23.5%). The tax
charge is lower than the basic rate largely because profits in the Middle East and negative goodwill are not taxable.
 
 
6.     Financial Information 
 
The financial information set out in this preliminary announcement has been prepared on the basis of the accounting
policies set out in the audited financial statements for the year ended 31 March 2004 approved by the Board on 7 June
2004.
 
The financial information does not constitute statutory accounts within the meaning of section 240 of the Companies
Act 1985. Statutory accounts for the year ended 31 March 2004 will be despatched to shareholders during June 2004 for
approval at the Annual General Meeting to be held on 30 July 2004.
 
The full financial statements contain an unqualified audit report and will be delivered to the Registrar of Companies
in accordance with section 242 of the Companies Act 1985.
Non-statutaory information - summary of four year trading results (Unaudited) 
 
The following tables contain the profit and loss account of Hyder Consulting Group as would have been presented if
the acquisition of HCHL had taken place on 1 April 2000. The information is illustrative only and does not form part
of the financial statements.
 

                                                                                                                      
                                                   Year to          Year to          Year to          Year to 
                                             31 March 2004    31 March 2003    31 March 2002    31 March 2001 
                                                     #'000            #'000            #'000            #'000 
  Turnover - HCHL                                                                                                     
  UK and Continental Europe                         75,672           71,552           69,719           59,040         
  Middle East                                       20,520           16,443           16,489           15,571         
  Asia Pacific                                      26,151           27,212           33,383           37,698         
  Turnover - Firth                                                                                                    
  UK and Continental Europe                         -                -                158              103            
  Total turnover                                    122,343          115,207          119,749          112,412        
  Operating profit / (loss) - HCHL                                                                                    
  UK and Continental Europe                         4,511            3,849            2,680            152            
  Middle East                                       954              996              1,020            939            
  Asia Pacific                                      (324)            (1,912)          (1,629)          (1,443)        
  Operating loss - Firth                                                                                              
  UK and Continental Europe                         (70)             (403)            (154)            (970)          
  Operating profit / (loss)                         5,071            2,530            1,917            (1,322)        
  Corporate overhead - HCHL                         (1,898)          (1,386)          (1,374)          (2,210)        
  Operating profit / (loss) before goodwill                                                                           
  amortisation and exceptional items                3,173            1,144            543              (3,532)        
  Net goodwill amortisation                         980              321              2,339            12,716         
  Exceptional items - operating                     (784)            307              41               (3,957)        
  Operating profit after goodwill amortisation                                                                        
  and exceptional items                             3,369            1,772            2,923            5,227          
  Exceptional items - post-operating                (419)            -                -                -              
  Net interest (payable) / receivable               (729)            (288)            (309)            449            
                                                    
  Profit before taxation                            2,221            1,484            2,614            5,676            
  Taxation                                          (8)              (514)            173              214            
  Profit after taxation                             2,213            970              2,787            5,890          
  Minority interests                                (50)             (104)            (25)             47             
  Profit attributable to shareholders               2,163            866              2,762            5,937          
  Dividends                                         (98)             -                -                -              
  Retained profit for the year                      2,065            866              2,762            5,937          
  EPS                                                                                                                 
  No. of shares - basic (m)                         23.98             23.0             23.0             23.0 
  No. of shares - diluted (m)                       24.21             23.0             23.0             23.0 
  EPS - basic                                       9.02p            3.77p           12.03p           25.86p 
  EPS - diluted                                     8.94p            3.76p           12.00p           25.79p 
  EPS - Excluding exceptional items and negative                                                                      
  goodwill                                                                                                            
  EPS - basic                                       9.95p            1.04p            1.66p         (12.29p) 
  EPS - diluted                                     9.86p            1.03p            1.66p         (12.26p) 
 



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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