Interim Management Statement
Hyder Consulting PLC (¬?Hyder¬? or ¬?the Group')
Hyder Consulting PLC, the international advisory and design consultancy, issues its Interim Management Statement which covers the period from 1 October 2008 to 11 February 2009.
The Group¬?s order book has grown to almost ¬£400m, benefiting from some notable project wins and the weakness of sterling. Major projects won during the period include:
In addition, we have secured a position on all seven framework contracts for Europe¬?s largest construction project, Crossrail, covering tunnels and shafts, stations, portals, rail systems, communications and control systems.
Review of Operations and Restructuring
Following a review of our operations by the new Executive team, we are restructuring in order to streamline and better align our service offerings with the markets and sectors in which we operate. In addition, we have responded to market conditions by reducing our headcount and overhead expenditure. As a result of these initiatives, headcount will reduce by 8% and one-off, exceptional costs of approximately ¬£8m will be incurred in the second half year, leading to anticipated annualised cost savings of some ¬£4m. The Board will remain vigilant in managing the Group¬?s operations through the current global downturn.
The Group¬?s business in the Middle East is performing well, benefiting from our longstanding presence in the region. In Dubai the recent slowdown in the property market has led to a small number of project cancellations, and some delays in contract payments. Elsewhere in the region, we have substantial operations notably in Abu Dhabi, Qatar and Bahrain, and remain confident of further growth.
The Group has seen some slowdown in the UK and Australia with delays in government expenditure on infrastructure projects and a lower workload in the property sector, though our exposure in the latter is relatively small. In the UK we are closing some of our smaller satellite offices and, as in Australia, reducing our overhead costs. In Germany our two recent acquisitions are performing well though we remain cautious about the economic outlook there. We remain well placed in East Asia as governments spend in order to boost economic growth.
With 65% of revenue earned overseas, Hyder is well diversified internationally, and also across market sectors. In the short term, the difficult trading conditions in our markets make us cautious as to the final outcome for the current financial year. Looking forward, however, the restructuring of our operations and our low gearing gives management confidence for the future.
For further details:
Ivor Catto, Chief Executive, Hyder Consulting PLC
Tel: 020 7316 6000
Russell Down, Finance Director, Hyder Consulting PLC
Tel: 020 7316 6000