TIDMHYC
RNS Number : 6308R
Hyder Consulting PLC
21 November 2012
Hyder Consulting PLC (HYC.L)
Half Year Results Announcement
Results for the half year ended 30 September 2012
Excellent half year results, well positioned for the full
year
Hyder Consulting, the multinational design and engineering
consultancy, today announces its financial results for the half
year ended 30 September 2012.
Highlights:
l Revenues up 8% to GBP150.0m (2011: GBP139.3m)
l Net adjusted operating margins* 9.0% (2011: 7.6%)
l Adjusted profit before tax* up 28% to GBP12.0m (2011:
GBP9.4m)
l Profit before tax up 36% to GBP11.0m (2011: GBP8.1m)
l Adjusted diluted earnings per share* up 23% to 23.81p (2011:
19.29p)
l Headcount up 8% to 3,936 (2011: 3,650)
l Net cash balances of GBP15.2m (2011: GBP4.8m)
l Interim dividend up 100% to 4.0p per share (2011: 2.0p)
l Order book up to GBP353m (2011: GBP291m)
* Adjusted numbers exclude acquisition costs, amortisation of
acquired intangibles and prior year exceptional items
Commenting on the results Ivor Catto, Chief Executive, said:
"The group has again performed well endorsing the strength of
our strategic positioning. We have benefited from the timing of
performance related payments in Australia and mobilisation on new
contracts in the Middle East, and increased staff numbers by 8%
over the year.
Our diversified geographic and market sector presence, good
order book and strong net cash position give us confidence in the
full year outcome."
Contacts:
Hyder Consulting PLC
Ivor Catto, Chief Executive Tel: +44 (0)20 3014 9197
Russell Down, Group Finance Director Tel: +44 (0)20 3014
9192
Citigate Dewe Rogerson
Ginny Pulbrook Tel: +44 (0)20 7282 2945
There will be a half year results presentation for stockbroking
analysts today at 9.00am, to be held at Citigate Dewe Rogerson, 3
London Wall Buildings, London Wall, EC2M 5SY
I am pleased to report our half year results were well ahead of
the prior year, ahead of plan and in line with our pre-close
trading update released on 28 September 2012.
Financial results
Revenue for the period increased by 8% to GBP150.0m (2011:
GBP139.3m), and net fees by 9% to GBP131.5m (2011: GBP120.2m). The
order book increased by 21% to GBP353m from 30 September 2011.
Adjusted operating profit in the period increased by 31% to
GBP11.9m (2011: GBP9.1m), benefiting from the timing of performance
related payments in Australia and mobilisation on new contracts in
the Middle East. Operating profit amounted to GBP10.9m (2011:
GBP7.8m).
Net finance income reduced to GBP0.1m (2011: GBP0.3m),
reflecting the increased costs of borrowing facilities and interest
received on delayed contract payments in the prior period. Adjusted
profit before tax increased by 28% to GBP12.0m (2011: GBP9.4m).
The effective rate of tax increased to 24.6% (2011: 21.2%) as a
result of a greater proportion of profits being earned in higher
tax jurisdictions; the adjusted rate was 24.1% (2011: 20.3%).
Adjusted diluted earnings per share increased by 23% to 23.81p
(2011: 19.29p).
Headcount over the year increased by 8% to 3,936 (2011: 3,650);
we anticipate further growth in staff numbers during the second
half.
Funding
The group has a strong balance sheet with netcash balances of
GBP15.2m at 30 September 2012, compared to GBP4.8m at 30 September
2011 and GBP15.6m at 31 March 2012. Cash generated from operations
was GBP8.0m (2011: cash utilised of GBP1.6m), after making
contributions of GBP0.4m (2011: GBP2.6m) towards the pension
deficit.
The deficit in the Acer Group Pension Scheme as reported under
IAS19 increased by GBP2.0m, net of deferred tax, to GBP15.1m.
Actuarial losses of GBP3.6m were recognised in the period as a
result of lower than expected asset returns and reduced discount
rates.
Dividend
Given the group's trading performance and net cash position, and
in order to adjust the split of the full year dividend more towards
the interim, the board has declared an increase in the interim
dividend to 4.0p (2011: 2.0p). The dividend is payable on 17
January 2013 to shareholders on the register at 14 December
2012.
Board
We were pleased to announce in July the appointment of Kevin
Taylor, President of BT's Asia Pacific operations, as a
non-executive director effective from 6 August.
Regional review
Asia Pacific
Revenue increased by 19% to GBP66.9m (2011: GBP56.1m), and
operating profits were GBP9.0m (2011: GBP6.9m).
In Australia, results were well ahead of the same period last
year following performance related payments as a result of good
project management and innovation on transport contracts. Hyder
continues to work on a number of infrastructure contracts and we
remain well positioned for new highway and rail opportunities in
the second half. In the resources sector the integration of GW
Engineers is progressing well and is providing a good pipeline of
opportunities for the group. In the property sector our workload is
increasing, particularly in New South Wales.
In Asia, we have grown our presence in China and opened a new
office in Changsha during the period. In the property sector a
number of contracts have been delayed which, combined with
investment costs, has led to a small loss. We have recently secured
a number of new projects which we anticipate will result in a
return to profitability in the second half.
Middle East
Revenues increased by 15% to GBP36.4m (2011: GBP31.6m), and
operating profits by 145% to GBP2.7m (2011: GBP1.1m), in line with
plan. In Qatar, we have performed strongly following mobilisation
on a number of new contracts including infrastructure works for
Ashghal, a mega reservoirs design project for Kahramaa and tender
design works for Doha metro. In the UAE and Saudi Arabia contract
awards have been slower, though we have a good pipeline of
substantial opportunities. Working capital has reduced in the first
half following cash receipts relating to mobilisation payments and
delayed contract settlements.
Europe
Revenues were GBP46.7m (2011: GBP51.6m) and operating profits
GBP1.9m (2011: GBP2.9m).
In the UK, as announced previously, market conditions continue
to be challenging. Our rail business performed ahead of plan with a
strong workload from London Bridge Station and major projects with
Network Rail and Transport for London. In the highways sector, we
have secured work under the Highways Agency managed motorways hub
programme, but awards have been slower to come to fruition than
anticipated. In the utilities sector results have been affected by
some project delays; the property sector remains subdued.
In Germany our utilities business has performed well during the
period, although workload in our transport business has been
affected by public sector spending cuts and project delays.
Outlook
The group has performed strongly in the first halfbenefiting
from the timing of performance related payments in Australia. We
have a good order book and opportunity pipeline, favourable market
positioning, a diversified geographic base and a strong financial
position. Together, these give the board confidence in the full
year outcome.
I would like to express the board's appreciation to our staff
for their initiative and hard work in achieving these results and
to our clients for their greatly valued support.
Sir Alan Thomas
Chairman
21 November 2012
Group income statement for the six months ended 30 September
2012 (unaudited)
Six months Six months Year
ended 30 ended ended
September 30 September 31 March
2012 2011 2012
Note GBP'000 GBP'000 GBP'000
----------- -------------- ----------
Revenue 2 150,003 139,318 277,309
Net operating costs (139,147) (131,525) (260,239)
----------- -------------- ----------
Operating profit 10,856 7,793 17,070
----------- -------------- ----------
Finance costs 3 (480) (441) (847)
Finance income 3 610 729 1,423
----------- -------------- ----------
Profit before tax 10,986 8,081 17,646
----------- -------------- ----------
Analysed as:
Adjusted profit before tax 12,005 9,362 21,607
Amortisation of acquired intangibles
and acquisition costs (1,019) (1,132) (2,462)
Exceptional items - (149) (1,499)
----------- -------------- ----------
Profit before tax 10,986 8,081 17,646
----------- -------------- ----------
Taxation 4 (2,704) (1,711) (3,723)
----------- -------------- ----------
Profit for the period 8,282 6,370 13,923
=========== ============== ==========
Profit/(loss) attributable to:
Equity holders of the parent 8,427 6,370 13,933
Non-controlling interests (145) - (10)
----------- -------------- ----------
8,282 6,370 13,923
Earnings per share (p)
Basic 5 21.97 16.83 36.48
Diluted 5 21.69 16.47 35.96
The adjusted earnings per share figures
are shown in note 5(c).
Group statement of comprehensive income for the six months ended
30 September 2012 (unaudited)
Six months Six months Year
ended 30 ended 30 ended
September September 31 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
----------- ----------- ----------
Profit for the period 8,282 6,370 13,923
Other comprehensive (expense) / income
for the period
Foreign exchange movements (1,429) (59) (1,342)
Cash flow hedges 5 (98) (48)
Actuarial loss on post employment
benefit schemes (2,605) (2,842) (4,507)
----------- ----------- ----------
Total other comprehensive expense for
the period (4,029) (2,999) (5,897)
----------- ----------- ----------
Total comprehensive income for the
period 4,253 3,371 8,026
=========== =========== ==========
Attributable to:
Equity holders of the parent 4,399 3,371 8,034
Non-controlling interests (146) - (8)
------ ------ ------
4,253 3,371 8,026
====== ====== ======
All balances are shown net of tax.
Group statement of changes in equity for the six months ended 30
September 2012 (unaudited)
Share Share Retained Other Non-controlling Total
capital premium earnings reserves Total interests equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- --------- --------- ---------- ---------- -------- ---------------- --------
At 1 April 2011 3,854 29,589 36,606 11,317 81,366 - 81,366
Profit for the period - - 6,370 - 6,370 - 6,370
Foreign exchange movements - - - (59) (59) - (59)
Cash flow hedges - - - (98) (98) - (98)
Actuarial loss on post
employment benefit schemes - - (2,842) - (2,842) - (2,842)
New shares issued 8 - - - 8 - 8
Premium on new shares
issued - 175 - - 175 - 175
Dividends paid - - (2,270) - (2,270) - (2,270)
Share based payments - - 368 - 368 - 368
Employee trust purchase
of own shares - - - (361) (361) - (361)
Transfer of own shares
from EBT - - (14) 14 - - -
--------- --------- ---------- ---------- -------- ---------------- --------
At 30 September 2011 3,862 29,764 38,218 10,813 82,657 - 82,657
Profit for the period - - 7,563 - 7,563 (10) 7,553
Foreign exchange movements - - - (1,285) (1,285) 2 (1,283)
Cash flow hedges - - - 50 50 - 50
Actuarial loss on post
employment benefit schemes - - (1,665) - (1,665) - (1,665)
New shares issued 1 - - - 1 - 1
Premium on new shares
issued - 25 - - 25 - 25
Dividends paid - - (757) - (757) - (757)
Share based payments - - 292 - 292 - 292
Transfer of own shares
from EBT - - (5) 5 - - -
Non-controlling interests
acquired - - - - - 399 399
--------- --------- ---------- ---------- -------- ---------------- --------
At 31 March 2012 3,863 29,789 43,646 9,583 86,881 391 87,272
Profit for the period - - 8,427 - 8,427 (145) 8,282
Foreign exchange movements - - - (1,428) (1,428) (1) (1,429)
Cash flow hedges - - - 5 5 - 5
Actuarial loss on post
employment benefit schemes - - (2,605) - (2,605) - (2,605)
New shares issued 3 - - - 3 - 3
Premium on new shares
issued - 62 - - 62 - 62
Dividends paid - - (2,653) - (2,653) - (2,653)
Share based payments - - 491 - 491 - 491
Employee trust purchase - - - - - - -
of own shares
Transfer of own shares
from EBT - - (226) 226 - - -
--------- --------- ---------- ---------- -------- ---------------- --------
At 30 September 2012 3,866 29,851 47,080 8,386 89,183 245 89,428
========= ========= ========== ========== ======== ================ ========
All balances are shown net of tax.
Group balance sheet at 30 September 2012 (unaudited)
As at As at As at
30 September 30 September 31 March
2012 2011 2012*
Note GBP'000 GBP'000 GBP'000
-------------- -------------- ----------
Assets
Non-current assets
Goodwill 7 33,905 30,741 34,348
Intangible assets 7 8,531 8,401 9,913
Property, plant and equipment 7 7,679 7,475 6,954
Deferred tax assets 10,740 10,544 9,513
-------------- -------------- ----------
60,855 57,161 60,728
Current assets
Trade and other receivables 119,699 118,977 118,139
Corporation tax recoverable 165 545 179
Cash and cash equivalents 9(b) 22,146 15,938 23,218
-------------- -------------- ----------
142,010 135,460 141,536
Liabilities
Current liabilities
Borrowings (796) (2,743) (1,018)
Trade and other payables (64,473) (62,818) (67,756)
Current tax liabilities (4,081) (2,737) (3,372)
Provisions 8 (3,335) (3,939) (3,958)
-------------- -------------- ----------
(72,685) (72,237) (76,104)
-------------- -------------- ----------
Net current assets 69,325 63,223 65,432
-------------- -------------- ----------
Non-current liabilities
Borrowings (6,155) (8,443) (6,557)
Post employment benefits 11 (26,737) (24,750) (24,235)
Provisions 8 (1,207) (394) (1,254)
Deferred tax liabilities (911) (900) (950)
Other non-current liabilities (5,742) (3,240) (5,892)
-------------- -------------- ----------
(40,752) (37,727) (38,888)
-------------- -------------- ----------
Net assets 89,428 82,657 87,272
============== ============== ==========
Equity
Called up ordinary share capital 3,866 3,862 3,863
Share premium 29,851 29,764 29,789
Retained earnings 47,080 38,218 43,646
Other reserves 8,386 10,813 9,583
-------------- -------------- ----------
Equity attributable to equity holders
of the parent 89,183 82,657 86,881
Non-controlling interests 245 - 391
-------------- -------------- ----------
Total equity 89,428 82,657 87,272
============== ============== ==========
* Restated for the amendments to the acquisition balance sheet
of GW Engineers Limited (see note 10).
Group cash flow statement for the six months ended 30 September
2012 (unaudited)
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2012 2011 2012
Note GBP'000 GBP'000 GBP'000
-------------- -------------- ----------
Cash flows from operating activities
Cash generated from / (used in) operations 9(a) 8,001 (1,617) 15,630
Net finance costs (311) (86) (527)
Tax paid (2,385) (3,279) (4,501)
-------------- -------------- ----------
Net cash generated from / (used in)
operating activities 5,305 (4,982) 10,602
-------------- -------------- ----------
Cash flows from investing activities
Acquisition of subsidiaries (net of
cash acquired) and deferred consideration (120) 272 (2,536)
Proceeds from disposal of property, plant
and equipment (incl. software) 8 102 107
Purchase of property, plant and equipment
(incl. software) (2,865) (1,065) (2,268)
-------------- -------------- ----------
Net cash used in investing activities (2,977) (691) (4,697)
-------------- -------------- ----------
Cash flows from financing activities
Proceeds on issue of shares 65 183 209
Shares issued to non-controlling interests - - 50
Employee trust purchase of own shares - (361) (361)
Repayments of obligations under finance
leases (232) (515) (837)
Net movement on borrowings (389) 2,427 (891)
Dividends paid 6 (2,653) (2,270) (3,027)
-------------- -------------- ----------
Net cash used in financing activities (3,209) (536) (4,857)
-------------- -------------- ----------
Net (decrease)/increase in cash and
cash equivalents (881) (6,209) 1,048
-------------- -------------- ----------
Cash and cash equivalents at 1 April 23,218 22,220 22,220
Effect of exchange rate changes (191) (73) (50)
Cash and cash equivalents at end of
period 22,146 15,938 23,218
============== ============== ==========
Reconciliation of net cash
Six months Six months Year
ended 30 ended ended
September 30 September 31 March
2012 2011 2012
Note GBP'000 GBP'000 GBP'000
----------- -------------- ----------
Net (decrease)/increase in cash and
cash equivalents (881) (6,209) 1,048
Decrease/(increase) in debt 621 (2,085) 1,555
Effect of exchange rate changes (188) (50) (56)
----------- -------------- ----------
Change in net cash during the period (448) (8,344) 2,547
----------- -------------- ----------
Net cash at 1 April 15,643 13,096 13,096
----------- -------------- ----------
Net cash 9(b) 15,195 4,752 15,643
=========== ============== ==========
Notes to the Financial Statements
1. General information
(a) Basis of preparation
This condensed unaudited consolidated financial information for
the half year ended 30 September 2012 has been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Services Authority and with IAS 34, "Interim financial
reporting" as adopted by the European Union (EU). The half year
condensed consolidated financial report should be read in
conjunction with the annual financial statements for the year ended
31 March 2012, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the EU.
The condensed consolidated half yearly financial statements have
been prepared on a going concern basis under the historical cost
convention, as modified by the valuation of financial instruments
which are measured at fair value. The statements are prepared in
accordance with IFRS as adopted by the EU, and those parts of the
Companies Act 2006 related to reporting under IFRS.
The preparation of financial statements in conformity with
generally accepted accounting principles requires the use of
estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reported
period. Although these estimates are based on management's best
knowledge of the amount, events or actions, actual results
ultimately may differ from those estimates.
The financial information does not constitute statutory accounts
within the meaning of section 434 of the Companies Act 2006. The
financial information relating to the year ended 31 March 2012 has
been delivered to the Registrar of Companies. The report of the
auditors on those accounts was unqualified.
The balance sheet at 31 March 2012 has been restated to reflect
the final fair value adjustments for the acquisition of GW
Engineers Limited on 1 March 2012.
(b) Principal accounting policies
The accounting policies adopted are consistent with those of the
annual financial statements for the year ended 31 March 2012, as
described in those financial statements.
The group's significant accounting policies under IFRS are
available on the corporate website www.hyderconsulting.com within
the "Investors" section.
(c) Principal risks and uncertainties
The group faces a number of risks which are regularly monitored
by the board. A structured risk management, internal control and
internal audit process seeks to provide a means of identifying,
evaluating and prioritising risk. However these systems can only
operate to mitigate risk rather than eliminate it completely. The
principal risks and uncertainties facing the group have not changed
from the prior year end and are as follows:
-- Changes in market conditions;
-- Management of projects;
-- Contractual disputes and claims;
-- Recruitment, utilisation and retention of key staff;
-- Management of working capital, particularly in the Middle East;
-- Defined benefit pension schemes;
-- Crisis event/business continuity;
-- Health and safety;
-- Foreign exchange movements.
Further information on the principal risks and uncertainties is
included in the annual report for the year ended 31 March 2012.
2. Segmental analysis by location of operations
Operating segments are reported in a manner consistent with the
internal reporting provided to the board (the chief operating
decision maker), which is responsible for allocating resources and
assessing performance of the operating segments.
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 internationally 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
Six months Inter-segment Six months Six months
ended revenue ended ended Year ended
30 September 2012 30 September 30 September 31 March
2012 2012 2011 2012
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
============== ============== ============== ============== ===========
Australia 56,722 (426) 56,296 45,144 90,178
Asia 10,676 (107) 10,569 10,987 22,059
-------------- -------------- -------------- -------------- -----------
Asia-Pacific 67,398 (533) 66,865 56,131 112,237
Middle
East 37,656 (1,209) 36,447 31,552 63,837
UK 36,198 (372) 35,826 38,135 75,040
Germany 10,951 (86) 10,865 13,500 26,195
-------------- -------------- -------------- -------------- -----------
Europe 47,149 (458) 46,691 51,635 101,235
-------------- -------------- -------------- -------------- -----------
152,203 (2,200) 150,003 139,318 277,309
============== ============== ============== ============== ===========
(b) Segment results
GBP'000 GBP'000 GBP'000
-------- -------- --------
Australia 9,670 6,189 13,821
Asia (645) 662 889
-------- -------- --------
Asia-Pacific 9,025 6,851 14,710
Middle
East 2,717 1,064 3,882
UK 1,124 1,909 3,981
Germany 759 950 1,545
-------- -------- --------
Europe 1,883 2,859 5,526
Corporate overheads (1,750) (1,700) (3,087)
-------- -------- --------
Adjusted operating
profit 11,875 9,074 21,031
Amortisation of acquired intangibles (1,019) (808) (1,781)
Acquisition costs - (324) (681)
-------- -------- --------
(1,019) (1,132) (2,462)
Exceptional items
UK vacant property
costs - - (1,349)
UK AGPS closure
costs - (149) (150)
-------- -------- --------
- (149) (1,499)
Operating
profit 10,856 7,793 17,070
======== ======== ========
(c) Other profit and loss disclosures
Six months ended 30 September Six months ended 30 September
2012 2011
------------------------------------------- -------------------------------------------
Amortisation Amortisation
Amortisation of acquired Amortisation of acquired
Depreciation of software intangibles Depreciation of software intangibles
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- ------------- ------------- ------------- ------------- -------------
Australia 583 176 405 672 147 26
Asia 110 81 40 163 84 39
------------- ------------- ------------- ------------- ------------- -------------
Asia-Pacific 693 257 445 835 231 65
Middle
East 224 251 253 287 297 299
UK 348 203 176 337 229 230
Germany 162 88 145 217 124 214
------------- ------------- ------------- ------------- ------------- -------------
Europe 510 291 321 554 353 444
------------- ------------- ------------- ------------- ------------- -------------
1,427 799 1,019 1,676 881 808
============= ============= ============= ============= ============= =============
Year ended 31 March 2012
-------------------------------------------
Amortisation
Amortisation of acquired
Depreciation of software intangibles
GBP'000 GBP'000 GBP'000
------------- ------------- -------------
Australia 1,298 288 53
Asia 238 170 79
------------- ------------- -------------
Asia-Pacific 1,536 458 132
Middle
East 435 571 625
UK 697 437 555
Germany 383 256 469
------------- ------------- -------------
Europe 1,080 693 1,024
------------- ------------- -------------
3,051 1,722 1,781
============= ============= =============
(d) Total assets
As at As at As at
30 September 30 September 31 March
2012 2011 2012*
GBP'000 GBP'000 GBP'000
-------------- -------------- ----------
Australia 55,665 36,999 51,018
Asia 18,526 19,253 19,345
-------------- -------------- ----------
Asia-Pacific 74,191 56,252 70,363
Middle
East 60,044 59,300 65,462
UK 45,512 47,309 42,177
Germany 23,118 29,760 24,262
-------------- -------------- ----------
Europe 68,630 77,069 66,439
202,865 192,621 202,264
============== ============== ==========
* Restated for the amendments to the acquisition balance sheet
of GW Engineers Limited (see note 10)
3. Net finance income
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
-------------- -------------- ----------
Bank borrowings (233) (250) (474)
Finance leases (12) (70) (63)
Interest rate financial instruments (69) (79) (151)
Amortisation of arrangement fees (65) - (18)
Unwinding of discounts on provisions
and other liabilities (101) (42) (141)
-------------- -------------- ----------
Finance costs (480) (441) (847)
-------------- -------------- ----------
Investment income 94 180 285
Interest received on settlement of
contracts - 133 133
Unwinding of discounts on trade receivables 116 - 76
Net finance income on post employment
benefit schemes 400 416 929
-------------- -------------- ----------
Finance income 610 729 1,423
-------------- -------------- ----------
Net finance income 130 288 576
============== ============== ==========
4. Tax
The tax charge for the period has been calculated using an
estimate of the effective annual rate of tax for the group for the
full year. These rates have been applied to the pre-tax profits for
the group for the six months ended 30 September 2012. The group has
separately calculated the tax rates applicable to amortisation of
acquired intangibles, acquisition costs and exceptional items for
the period. Tax rate changes that were substantively enacted at the
balance sheet date have been factored into the calculation of the
effective tax rates.
Six months Six months Year
ended ended ended
30 September 30 September 31 March
2012 2011 2012
-------------- -------------- ----------
Tax rate on profit before tax 24.6% 21.2% 21.1%
Tax rate on amortisation of acquired intangibles,
acquisition costs and exceptional items 19.0% 14.8% 18.0%
Tax rate on adjusted profit before
tax 24.1% 20.3% 20.5%
5. Earnings per share
(a) Number of shares
Six months Six months Year
ended ended 30 ended
30 September September 31 March
2012 2011 2012
-------------- ----------- -----------
Weighted average number of shares
in issue 38,354,740 37,846,155 38,195,119
Effect of dilution
Share options 496,016 836,987 551,891
Weighted average shares (diluted) 38,850,756 38,683,142 38,747,010
============== =========== ===========
(b) Earnings used in the calculation of earnings per share
Six months Six months Year
ended ended 30 ended
30 September September 31 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
-------------- ----------- ----------
Profit attributable to equity shareholders 8,427 6,370 13,933
Add back amortisation of acquired intangibles
and acquisition costs 1,019 1,132 2,462
Add back exceptional items - 149 1,499
Less tax on adjusted items (194) (189) (712)
-------------- ----------- ----------
Adjusted earnings 9,252 7,462 17,182
============== =========== ==========
(c) Earnings per share
Six months Six months Year
ended ended 30 ended
30 September September 31 March
2012 2011 2012
p p p
-------------- ----------- ----------
Basic earnings per share 21.97 16.83 36.48
Add back amortisation of acquired intangibles
and acquisition costs 2.66 2.99 6.45
Add back exceptional items - 0.39 3.92
Less tax on adjusted items (0.51) (0.49) (1.86)
-------------- ----------- ----------
Adjusted basic earnings per share 24.12 19.72 44.99
============== =========== ==========
Six months Six months Year
ended ended 30 ended
30 September September 31 March
2012 2011 2012
p p p
-------------- ----------- ----------
Diluted earnings per share 21.69 16.47 35.96
Add back amortisation of acquired intangibles
and acquisition costs 2.62 2.93 6.35
Add back exceptional items - 0.38 3.87
Less tax on adjusted items (0.50) (0.49) (1.84)
-------------- ----------- ----------
Adjusted diluted earnings per share 23.81 19.29 44.34
============== =========== ==========
6. Dividends
Six months Six months Year
ended ended 30 ended
30 September September 31 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
-------------- ----------- ----------
Dividends charged to equity in the
period 2,653 2,270 3,027
============== =========== ==========
Equity - per ordinary 10p share
Final dividend paid (p) 7.00 6.00 6.00
Interim dividend paid (p) - - 2.00
As at 30 September 2012, the employee benefit trust had an
agreement in place to waive dividends on 703,678 ordinary shares
(31 March 2012 and 30 September 2011: 801,976). This arrangement
reduced the dividends paid in the period by GBP52,000 (31 March
2012: GBP59,000; 30 September 2011: GBP43,000).
The directors have declared an interim dividend of 4.00p per
share (2011: 2.00p). This will be paid on 17 January 2013 to the
shareholders on the register as at 14 December 2012.
7. Property, plant and equipment and Intangible assets
Property,
Intangible plant and
Goodwill* Assets* equipment*
GBP'000 GBP'000 GBP'000
---------- ----------- ------------
Net book value
At 1 April 2011 30,485 8,585 7,550
Exchange adjustments (82) (12) (126)
Additions - separately acquired - 341 1,114
Additions - business combinations 340 1,174 726
Disposals - - (113)
Depreciation and amortisation - (1,689) (1,676)
---------- ----------- ------------
At 30 September 2011 30,743 8,399 7,475
Exchange adjustments (239) (109) (47)
Additions - separately acquired - 419 788
Additions - business combinations 3,844 3,019 115
Disposals - (1) (2)
Depreciation and amortisation - (1,814) (1,375)
---------- ----------- ------------
At 31 March 2012 34,348 9,913 6,954
Exchange adjustments (443) (74) (168)
Additions - separately acquired - 510 2,355
Additions - business combinations - - -
Disposals - - (35)
Depreciation and amortisation - (1,818) (1,427)
---------- ----------- ------------
At 30 September 2012 33,905 8,531 7,679
========== =========== ============
* Restated for the amendments to the acquisition balance sheet
of GW Engineers Limited (see note 10).
8. Provisions
Professional
indemnity
insurance Vacant property Total
GBP'000 GBP'000 GBP'000
------------- ---------------- --------
At 1 April 2012 2,915 2,297 5,212
Exchange adjustments (8) - (8)
Charged to the income
statement 441 108 549
Released to the income
statement (267) (120) (387)
Utilised (199) (697) (896)
Unwinding of discount - 72 72
------------- ---------------- --------
At 30 September 2012 2,882 1,660 4,542
============= ================ ========
At 30 September 2012
Current liabilities 2,882 453 3,335
Non-current liabilities - 1,207 1,207
------------- ---------------- --------
2,882 1,660 4,542
============= ================ ========
At 30 September 2011
Current liabilities 3,203 736 3,939
Non-current liabilities - 394 394
------------- ---------------- --------
3,203 1,130 4,333
============= ================ ========
At 31 March 2012
Current liabilities 2,915 1,043 3,958
Non-current liabilities - 1,254 1,254
------------- ---------------- --------
2,915 2,297 5,212
============= ================ ========
Professional indemnity insurance
The provision reflects management's estimate of the likely cost
of claims including professional indemnity insurance excesses and
has been provided in accordance with group policy. These provisions
will be carried forward until the claims to which they relate are
agreed and amounts utilised or released as appropriate.
Vacant property
The provision represents the estimated net present value of
future rentals where properties are vacant. These provisions will
be utilised up until such time as the vacant properties are re-let
(when the requirement for a provision will be reassessed), or the
lease terminates, whichever occurs earlier. The maximum period
covered by these provisions is 7 years.
9. Notes to the consolidated cash flow statement
(a) Cash flows from operations
Six months Six months
ended ended Year ended
30 September 30 September 31 March
2012 2011 2012
GBP'000 GBP'000 GBP'000
-------------- -------------- -----------
Profit for the financial
period 8,282 6,370 13,923
Adjustments for:
Tax 2,704 1,711 3,723
Depreciation 1,427 1,676 3,051
Amortisation - software 799 881 1,722
Amortisation - acquisitions 1,019 808 1,781
Acquisition costs - 324 681
Exceptional items - 149 1,499
Interest receivable (610) (729) (1,423)
Interest payable and similar
charges 480 441 847
-------------- -------------- -----------
EBITDA 14,101 11,631 25,804
Profit on disposal of property, plant
and equipment 27 11 9
Fair value loss/(gain) on financial
instruments 16 (10) (30)
Share option costs 491 368 660
Decrease in provisions (742) (487) (960)
Decrease in post employment
benefits (96) (134) (13)
Deficit contributions to the AGPS defined
benefit pension scheme (390) (2,552) (3,919)
Changes in working
capital:
Increase in trade and other
receivables (1,419) (6,238) (3,841)
Decrease in trade and other
payables (3,987) (4,206) (2,080)
-------------- -------------- -----------
Cash generated from / (used
in) operations 8,001 (1,617) 15,630
============== ============== ===========
(b) Reconciliation of movement in net cash
At 30 At 30
September At 1 April Non-cash Exchange September
2011 2012 Cash flow movement movement 2012
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------- ----------- ---------- --------- --------- -----------
Cash at bank 15,938 23,218 (881) - (191) 22,146
----------- ----------- ---------- --------- --------- -----------
Debt due within 1 year (2,261) (759) 389 (356) - (726)
Debt due after 1 year (8,154) (6,338) - 356 - (5,982)
Finance leases due
within 1 year (482) (259) 232 (44) 1 (70)
Finance leases due
after 1 year (289) (219) - 44 2 (173)
----------- ----------- ---------- --------- --------- -----------
Total debt (11,186) (7,575) 621 - 3 (6,951)
----------- ----------- ---------- --------- --------- -----------
Net cash 4,752 15,643 (260) - (188) 15,195
=========== =========== ========== ========= ========= ===========
The cash at bank balance includes GBP5.1m (31 March 2012:
GBP3.0m; 30 September 2011: GBP3.8m) that is restricted and not
available to the group for general use.
10. Prior year acquisitions
The group purchased the entire share capital of GW Engineers
Limited on 1 March 2012. The fair values of the acquired assets and
liabilities disclosed as provisional in the Annual Report 2012 in
respect of this acquisition have been finalised during the period.
The following adjustments have been made, as at the date of
acquisition:
Fair values Fair value
of
previously Adjustments assets
disclosed made acquired
GBP'000 GBP'000 GBP'000
------------ ------------ -----------
Intangible assets - 2,908 2,908
Property plant and equipment 239 (154) 85
Trade and other receivables 990 (26) 964
Amounts recoverable on
contracts 106 - 106
Deferred taxation - (873) (873)
Cash and cash equivalents 294 - 294
Trade and other payables (1,035) - (1,035)
------------ ------------ -----------
-
Identifiable net assets 594 1,855 2,449
Goodwill 4,010 (1,758) 2,252
------------ ------------ -----------
Net assets 4,604 97 4,701
============ ============ ===========
Consideration
Cash consideration 1,972
Deferred consideration 97
Contingent consideration 2,632
-----------
Gross consideration 4,701
===========
The movements in the fair value of goodwill and net assets
acquired were a result of the full valuation of intangible assets
for customer contracts, customer relationships, property, plant and
equipment and related deferred tax balances. In addition, the
finalisation of the valuation of net assets on acquisition gave
rise to an additional cash payment due to the vendor in respect of
the sale. There was no material impact on the income statement for
the year ended 31 March 2012.
11. Post employment benefits
Employees of the group participate in a number of pension
schemes both in the UK and overseas. The principal scheme in the UK
is the Acer Group Pension Scheme (AGPS) which is a defined benefit
scheme. The group's net liabilities in respect of post employment
benefits comprise the following:
As at 30 As at 30 As at
31
September September March
2012 2011 2012
GBP'000 GBP'000 GBP'000
---------- ---------- --------
AGPS 18,977 17,568 16,305
Overseas and unfunded
annuitants schemes 7,760 7,182 7,930
---------- ---------- --------
26,737 24,750 24,235
========== ========== ========
AGPS
A reconciliation of the amounts included in the consolidated balance
sheet for the AGPS is as follows:
As at 30 As at 30 As at
31
September September March
2012 2011 2012
GBP'000 GBP'000 GBP'000
------------ ------------ ----------
At 1 April (16,305) (17,267) (17,267)
Current service costs - (112) (112)
Past service costs - (521) (521)
Notional interest on pension
liability (3,335) (3,550) (7,122)
Expected return on plan
assets 3,890 4,110 8,336
Contributions by employers 390 2,664 4,031
Curtailments - 576 576
Actuarial (losses) / gains
due to:
- Assets (1,318) (2,374) 6,540
- Liabilities (2,299) (1,094)) (10,766)
------------ ------------ ----------
Deficit in AGPS (18,977) (17,568) (16,305)
------------ ------------ ----------
Related deferred tax asset 3,874 3,887 3,233
------------ ------------ ----------
Net pension deficit (15,103) (13,681) (13,072)
============ ============ ==========
As at 30 As at 30 As at
31
September September March
The key assumptions used 2012 2011 2012
were:
----------- ----------- -----------
Long-term rate of return:
- Equities 6.70% 8.15% 7.10%
- Bonds 3.90% 5.35% 4.30%
- Other assets 0.50% 0.50% 0.50%
Rate of increase to pensions
in payment:
- Index linked pensions with max 3% per
annum increases 2.17% 2.40% 2.45%
- Other index linked pension 2.66% 3.05% 3.15%
Discount rate 4.30% 5.10% 4.70%
Inflation assumptions
(RPI) 2.70% 3.20% 3.30%
Inflation assumptions
(CPI) 2.00% 2.60% 2.30%
Longevity at age 65 for
current pensioners
- Men 23.6 years 23.4 years 23.2 years
- Women 25.3 years 25.4 years 24.9 years
Longevity at age 65 for
future pensioners
- Men 25.7 years 25.5 years 25.4 years
- Women 27.6 years 27.3 years 27.4 years
12. Contingent liabilities
The group maintains professional indemnity insurance against
claims for professional negligence which in the ordinary course of
business have been, or may in the future be, received. The
directors assess each claim and make provision for legal and
settlement costs where, on the basis of advice received, it is
considered that a liability may exist.
Hyder Consulting PLC and various group companies have entered
into performance guarantees and performance bonds supporting
project requirements and certain other bonds and guarantees in the
ordinary course of business. The group's liabilities under
performance guarantees are only limited to the extent of the
underlying contracts. The directors do not consider any provision
is necessary in respect of guarantees and bonds.
13. Going concern
After making enquiries, the directors have a reasonable
expectation that the company and the group have adequate resources
to continue in operational existence for the foreseeable future and
therefore continue to adopt the going concern basis in preparing
the financial statements.
14. Statement of directors' responsibilities
This half year report is the responsibility of, and has been
approved by the directors. The directors confirm that to the best
of their knowledge: (i) this condensed set of financial statements
has been prepared in accordance with IAS 34 as adopted by the
European Union; and (ii) the interim management report herein
includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the group's
website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
The directors are listed in the annual report for the year ended
31 March 2012. A list of current directors is maintained on the
group's website: www.hyderconsulting.com.
15. Cautionary statement
This half yearly financial report has been prepared solely for
the company's members, as a body. The report may contain certain
forward-looking statements with respect to the financial condition,
performance, results, strategy and objectives, operations and
businesses of the group. By their nature these statements involve
uncertainty because they relate to future events and circumstances
which are beyond the group's control. As a result the group's
actual future financial condition, performance and results may
differ materially from the plans or expectations in any
forward-looking statement. The company assumes no obligation to
update or revise any forward-looking statement, resulting from new
information, future events or otherwise. Nothing in this half year
report should be construed as a profit forecast.
16. Further information
An electronic version of this half yearly financial report and
31 March 2012 financial statements can be viewed on the group's
website: www.hyderconsulting.com.
Independent review report to Hyder Consulting PLC
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2012, which comprises the group
income statement, the group statement of comprehensive income, the
group statement of changes in equity, the group balance sheet, the
group cash flow statement, and related notes. We have read the
other information contained in the half-yearly financial report and
considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim
Financial Reporting", as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review. This report, including the
conclusion, has been prepared for and only for the company for the
purpose of the Disclosure and Transparency Rules of the Financial
Services Authority and for no other purpose. We do not, in
producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown
or into whose hands it may come save where expressly agreed by our
prior consent in writing.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2012 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
London
21 November 2012
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FMMZMNGFGZZM
Hyder Consulting (LSE:HYC)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Hyder Consulting (LSE:HYC)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
