TIDMHYC
RNS Number : 3138J
Hyder Consulting PLC
11 June 2014
Hyder Consulting PLC
11 June 2014
Hyder Consulting PLC (HYC.L)
Final Results Announcement
Annual results for the year ended 31 March 2014
Hyder Consulting, the multinational design and engineering
consultancy, today announces its results.
Business highlights
-- Order book up 7% to GBP440m
-- Revenues of GBP296.8m (2013: GBP298.1m)
-- Adjusted operating profit* of GBP19.0m (2013: GBP23.6m)
-- Adjusted pre-tax profit* of GBP17.0m (2013: GBP21.6m)
-- Net operating margins of 7.4% (2013: 9.1%)
-- Adjusted diluted earnings per share* of 35.25p (2013: 42.27p)
-- Full year dividend up 8% to 13.0p per share (2013: 12.0p)
Statutory reporting
-- Operating profit of GBP7.4m (2013: GBP18.6m)
-- Pre-tax profit of GBP5.4m (2013: GBP16.6m)
-- Diluted earnings per share of 8.39p (2013: 30.72p)
*Adjusted numbers exclude amortisation of acquired intangibles,
acquisition costs, contingent consideration adjustments and
exceptional items
Commenting on the results Sir Alan Thomas, Chairman, said:
"Although group results for the year are below our original
expectations, trading in the UK and the Middle East continues to be
strong. This highlights the value of our technical skill base and a
regionally balanced business.
The flexibility enabled by our design excellence centres allows
us to concentrate resources on growing markets. We have a solid
pipeline, record order book and are confident we will continue to
capture a sizeable share of our target markets."
Contacts:
Hyder Consulting PLC
Ivor Catto, Chief Executive Tel: +44 (0)20 3014
9000
Russell Down, Group Finance Director Tel: +44 (0)20 3014
9000
Citigate Dewe Rogerson
Ginny Pulbrook Tel: +44 (0)20 7282
2945
There will be a results presentation for stockbroking analysts
today at 9.00am, to be held at Numis Securities, London Stock
Exchange, Paternoster Square, London, EC4M 7LT.
Chairman's Statement
Our results for the year were affected by delays in new contract
awards in Australia due to the election and the poor year in
Germany. As a result, it is the first time since 2005 that the
company has not increased its adjusted operating profit. However,
results for the year are in line with our revised expectations. We
have good bidding opportunities in Australia, and have restructured
our business in Germany, closing three offices. Our businesses in
the Middle East and the UK performed well, and ahead of the
previous year. Our order book is GBP440m, our highest to date, and
there is a broadly spread pipeline of opportunities across the
group.
Results
Reported revenues were GBP296.8m (2013: GBP298.1m); in constant
currency revenues increased by 2.7%. Net revenue, after deduction
of sub-consultant costs, was GBP255.9m (2013: GBP260.4m).
Adjusted operating profit was GBP19.0m (2013: GBP23.6m); the
adjusted net operating profit margin was 7.4% (2013: 9.1%). The
results were affected by delayed contract awards in Australia due
to the general election, and losses in Germany. The results were
also affected by GBP1.2m of adverse foreign exchange movements
compared to those on a constant currency basis. These effects were
partially offset by a strong performance from our UK business where
profits doubled this year, and increasing profits in the Middle
East.
Adjusted profit before tax was GBP17.0m (2013: GBP21.6m).
Exceptional items relating to impairment of goodwill and
restructuring in Germany were GBP6.8m. Profit before tax was
GBP5.4m (2013: GBP16.6m).
Adjusted diluted earnings per share were 35.25p (2013: 42.27p).
Diluted earnings per share after amortisation, acquisition costs,
contingent consideration adjustments and exceptional items were
8.39p (2013: 30.72p).
The order book increased by 7% to GBP440.3m (2013: GBP413.2m)
with particularly strong growth in the Middle East and the UK. Over
60% of the current year's forecast revenue is already secured.
Funding
At 31 March 2014 the group had net cash of GBP13.2m (2013:
GBP24.3m), reflective of financing growth in the Middle East, and
after net acquisition payments of GBP4.4m. Cash balances at the
year end were GBP19.3m (2013: GBP32.0m) with unutilised facilities
of GBP49.2m (2013: GBP48.6m).
The net deficit in our UK pension scheme at 31 March 2014
increased to GBP21.8m (2013: GBP19.1m) as a result of actuarial
losses. The scheme has been closed to future benefit accrual since
30 April 2011. Overseas and other pension liabilities fell to
GBP9.4m (2013: GBP10.3m) as a result of foreign exchange
movements.
We completed two acquisitions in Australia during the year at a
net cost of GBP3.7m; PLD, a specialist energy consultant, and
Flinders Group, an environmental consultancy. These businesses are
in sectors where we are building our market position and which will
enable us to participate at an earlier stage of the project life
cycle. They are integrating well and performing in line with plan.
Deferred and contingent consideration of GBP0.7m was paid in
relation to the previous acquisition of BCH. Effective 1 June we
acquired nuclear safety specialist SR(3) C in the UK, for initial
consideration of GBP3.5m in cash. We are exploring further
opportunities to enhance our market positions in core geographies
and sectors.
Dividend
The board is recommending a final dividend of 8.5p per share
(2013: 8.0p); the full year dividend will therefore be 13.0p per
share (2013: 12.0p), an increase of 8%.
Operating highlights
Asia-Pacific
Regional revenues were GBP99.6m (2013: GBP123.4m); adjusted
operating profits were GBP9.0m (2013: GBP14.9m).
In Australia, results were affected by delays in contract awards
due to the general election in September, and the weakening of the
Australian Dollar. There are some large opportunities in the
transport sector, although the increased bid activity affected
utilisation rates in the second half. PLD has integrated well into
the group and performed in line with plan. The acquisition of
environmental planning consultancy, Flinders Group, provides us
with specialist energy related environmental planning and project
management skills so as to capture opportunities at an earlier
stage of their conception.
In Asia thebusiness has developed relationships with a number of
key accounts and has grown revenues and order book as a result.
Following the restructuring undertaken last financial year the
business has returned to profitability.
Middle East
Revenue was GBP88.3m (2013: GBP75.2m); adjusted operating
profits increased to GBP7.7m (2013: GBP7.1m).
In the Middle East revenue has grown by 17%, and profitability
has improved as we mobilised on contracts for Ashghal in Qatar
including Doha Expressway and the North Orbital Truck Road. In
Saudi Arabia revenue has increased as we have developed our
property and utilities businesses there. More recently we have seen
signs of increased activity in the UAE property sector, and
particularly in Dubai following the award of Expo 2020.
Regional working capital has increased as a result of higher
revenues, and a greater proportion of public sector infrastructure
contracts. The management of working capital in the region remains
a priority for us as the scale of opportunities grows.
Europe
Revenue was GBP108.9m (2013: GBP99.5m); adjusted operating
profits were GBP5.1m (2013: GBP4.8m).
In the UK revenues grew by 17% and profits doubled to GBP6.8m,
with the transport business performing particularly well. Our rail
business is working on London Bridge, Manchester Victoria and Bank
stations, as well as capacity enhancement works, electrification
and signalling projects for Network Rail and Transport for London.
In the highways sector workload has increased with the Highways
Agency under our framework agreements, and specialist staff are
also supporting major projects in the Middle East. In the utilities
sector we are assisting a number of UK water companies with their
AMP programmes, and there are additional opportunities for us here.
PCS, the energy consultancy acquired last year, has integrated well
into the group and performed in line with plan.
In Germany the business has been restructured and we anticipate
a return to profitability during the current financial year.
Following a review of the carrying value of goodwill on
acquisitions, GBP6.1m has been written off as a non cash
exceptional item. Restructuring costs of GBP0.7m have also been
treated as exceptional.
Board
Elisabeth Astall joined as a non-executive director on 1
December 2013. She has substantial executive and board-level
experience in international consulting and I am delighted to
welcome her to the board.
Having been chairman since leading Hyder's listing in 2002, I
announced last year that it would be the last AGM at which I would
stand for re-election. I am very pleased that Jeffrey Hume, our
Senior Independent Director, has been appointed as my successor and
will be taking over as chairman after the AGM on 1 August 2014.
People
We now employ approximately 4,500 people, an increase of 12%
over last year. As planned, a greater proportion of staff is now
employed in our design excellence centres in India and the
Philippines, giving us greater capacity and flexibility in
addressing competitive opportunities.
Outlook
The outlook for the group's current financial year remains
unchanged. We expect another good year in the Middle East and in
the UK. We have a good pipeline of bidding opportunities in
Australia, and expect further progress in Asia. We believe that the
restructuring and management changes we have made in Germany will
restore the region to profitability. Our order book is at a record
level, and this gives us confidence in our longer term
prospects.
In my twelve years as Chairman I have been very happy to see the
progress that Hyder has made and I should like to thank most warmly
every member of our staff. They have done a wonderful job in
developing the company into a leading international consultancy. I
wish each and every one of them continued success and offer them my
personal thanks. It has been a privilege working with Hyder.
Sir Alan Thomas
Chairman
11 June 2014
Operational review
Hyder is a leading multinational design and engineering
consultancy with a heritage that spans over two centuries.
Whilst our headquarters are in London, our business is managed
through three primary regions: Asia-Pacific (Australia and Asia),
Middle East (UAE, Saudi Arabia, Qatar, Bahrain and Oman), and
Europe (UK and Germany).
Asia-Pacific
Regional revenues were GBP99.6m (2013: 123.4m); adjusted
operating profits were GBP9.0m (2013: GBP14.9m).
2014 2013
------------------------- ---------------------------
Australia Asia Total Australia Asia Total
Revenue (GBPm) 77.3 22.3 99.6 102.6 20.8 123.4
Adjusted operating
profit (GBPm) 8.6 0.4 9.0 16.1 (1.2) 14.9
Margin 11.1% 1.8% 9.0% 15.7% (5.8%) 12.1%
Order book (GBPm) 40.7 44.8 85.5 45.6 43.9 89.5
People 841 375 1,216 709 441 1,150
Australia
In Australia results have been affected by delays in the award
of new contracts due to the general election, the weakening
Australian dollar and performance bonuses recognised in the prior
year. We have continued to work on both Alliance and Independent
Verifier projects, as well as in more traditional design and
construct roles with key contractor clients. Post the general
election the policy of the new government to give priority to
transport infrastructure projects has led to a good pipeline of
opportunities and a significant increase in bidding activity. The
scale and volume of projects has however led to funding
uncertainties and consequently workload is now expected to increase
later this financial year. In order to plan for the opportunities
ahead, we have grown headcount in our design excellence centre in
Manila, lowering our cost base and giving us flexibility to
mobilise quickly.
In the property sector the market is improving and our order
book has increased. We are working on 400 George Street, the
A-grade commercial and retail complex, and the Willowdale
Residential Development with approximately 3,000 homes across a
350-hectare site in Sydney.
We made two acquisitions during the year, predominantly in the
energy sector, for a net maximum potential consideration of
GBP5.3m. In September 2013 we acquired Queensland based PLD
Consulting, a specialist in the design of high voltage overhead and
underground transmission and distribution lines. In March 2014 we
acquired Flinders Group, environmental planning consultants
operating from Queensland mainly in the energy sector. Both
acquisitions are in growing market sectors, and allow us to
participate earlier in the project life cycle; they have integrated
well and are performing in line with plan.
Asia
Revenues have grown in Asia, and following restructuring in the
prior year the business has returned to profitability. The
performance of the transport business has improved as we have built
and developed relationships with major contractors, and also
undertaken work in support of other regions in the group. Projects
undertaken in the year have included providing support to
contractors on tenders for major infrastructure opportunities
including the Liantang Border Crossing, Shatin Central Link, Hong
Kong Airport Boundary Crossing Facility and the Central Wanchai
Bypass.
In our ACLA business we have enhanced our urban planning and
facade engineering teams, and grown the order book. We have
increased our share of the five star hotel market, with
approximately 25 live projects across all the major luxury brands,
and have also won a number of high profile, city centre mixed use
projects. We are particularly pleased to have secured the award for
the West Kowloon Cultural District, as engineering consultant and
landscape architect.
Major projects
-- Qube Port Logistics, Australia
-- UIan West Engineering, Australia
-- Wulkuraka Rolling Stock Depot, Australia
-- Westfield Warringah Mall, Australia
-- Residential Development at Fanling North, Hong Kong
-- Urumqi Rail line study, China
-- Poly Zhanjiang Origin Plaza, China
Middle East
Regional revenues increased 17% to GBP88.3m (2013: GBP75.2m);
adjusted operating profits were up 8% to GBP7.7m (2013: GBP7.1m) as
we have mobilised on new infrastructure projects. The order book
has grown by 20% to GBP227.9m (2013: GBP189.6m) giving us good
visibility of revenues into the future.
2014 2013
------ ------------
Revenue (GBPm) 88.3 75.2
Adjusted operating
profit (GBPm) 7.7 7.1
Margin 8.7% 9.4%
Order book
(GBPm) 227.9 189.6
People 1,523 1,237
In our transport business we have grown both revenues and
profits over the year. In Qatar we are now working on two packages
for the Doha Expressway programme, General Engineering Contract 2
for infrastructure and drainage works north of Doha, and the North
Orbital Truck Road. Elsewhere our business in Saudi Arabia has
grown with work for the Jeddah Municipality and the National Water
Company.
Our property business has a strong reputation across the region
having completed projects including the world's tallest building,
Burj Khalifa, and the Emirates Towers. In the UAE the market
continues to show signs of recovery on the back of renewed
confidence and the recent award of the Expo 2020 to Dubai. We have
secured new hospitality and leisure projects including the W Hotel,
and Bright Star Hotel which are now in the construction phase. In
Saudi Arabia, our business is developing with good prospects in the
healthcare, medical, and industrial property sectors.
As expected, working capital requirements have increased as
revenues have grown, and the balance of workload has shifted to
public sector infrastructure projects. The increase in working
capital has primarily been due to higher work in progress balances
as billing milestones have not yet been reached on new contracts.
We strive to minimise working capital balances through securing
good payment terms and collections, utilising our long term client
relationships in the region.
Major projects
-- Johnson Controls Industrial Plant, Jeddah, Saudi Arabia
-- Mediclinic, Dubai, UAE
-- Mall of Emirates Extension, Dubai, UAE
-- Sharjah Community Malls, Sharjah, UAE
-- Hamad Medical Corporation Hospital, Qatar
-- Public Realm Design for Lusail City, Qatar
Europe
Regional revenues increased 9% to GBP108.9m (2013: GBP99.5m);
adjusted operating profits were GBP5.1m (2013: GBP4.8m).
2014 2013
------------------------ ------------------------
UK Germany Total UK Germany Total
Revenue (GBPm) 88.1 20.8 108.9 75.5 24.0 99.5
Adjusted operating
profit (GBPm) 6.8 (1.7) 5.1 3.4 1.4 4.8
Margin 7.7% (8.2%) 4.7% 4.5% 5.8% 4.8%
Order book (GBPm) 105.3 21.6 126.9 110.3 23.8 134.1
People 1,352 374 1,726 1,203 407 1,610
UK
In the UK, our results are ahead of plan and the previous year.
Despite the tough market conditions in the construction industry,
the government has broadly maintained investment in transport
infrastructure, with rail taking a growing share of the available
funds.
Our rail business has performed well, and we have seen an
increase in commitment to infrastructure with major enhancement and
upgrade schemes at various stations. In addition, new major
projects and programmes were identified to enhance the capacity of
existing lines through major electrification, re-signalling and
platform extension schemes. Our electrification team has also
secured three major commissions including NEP Valley Lines
Electrification and two packages on the Southern E&P
Framework.
In our highways business we have seen an increasing spend this
year, particularly with the Highways Agency under our framework
contracts. We have recently been awarded the client agent
commission for M4 Corridor around Newport and are continuing work
on a number of other contracts including Manchester Smart Motorway
and M4 J3-12 Improvements.
The conditions within the utilities sector and the regulated
water market in particular, have been competitive. Procurement for
AMP6 is underway with projects tending to be maintenance-based
solutions of smaller capital value than the larger capital market
AMP5 projects.
Our newly integrated energy and environment sector is
experiencing good conditions in all of our markets. The Environment
team remain very active in land development projects, where we
continue to work with some of the largest ongoing schemes in the
UK. We have experienced growth in all of these areas this year,
most notably with the successful integration of the PCS
acquisition.
Germany
In Germany the business incurred losses during the year as a
result of the challenging market conditions and contract
variations. In the second half year we closed a number of offices,
including our design centre in Bulgaria, and reduced staff numbers;
we anticipate a return to profitability during the current
financial year. Following a review of the carrying value of
goodwill on acquisitions, an amount of GBP6.1m has been written off
as a non cash exceptional item. Restructuring costs relating to
office closures and redundancies of GBP0.7m have also been treated
as exceptional.
The public sector transport market has been subdued, although we
are working on a number of transport projects across the country
including highway projects with key client Deges. We have developed
our existing relationships with key European industrial companies
such as Siemens, Alstom, and BASF, and have secured industrial
property work with BMW for construction management of a new
production facility. Our operations have also provided valuable
support to the Middle East region in winning and executing projects
for Hochtief in Qatar, and Siemens in Saudi Arabia.
Major projects
-- London Bridge Station, UK
-- Crossrail Surface Western Stations, UK
-- NEP Valley Lines Electrification, UK
-- CP5 Southern Rail frameworks, UK
-- Magnox Land Quality framework, UK
-- BASF TDI Europe project, Germany
-- Telekom Broadband extension, Germany
Financial review
The group's results for the year were below our original
expectations, principally as a result of lower workload in
Australia due to the general election, and the effect of foreign
exchange due to the weakening Australian dollar. In the prior year
the results benefited from Australian performance bonuses. Our
Asian business returned to profitability following the
restructuring last financial year. In the Middle East results
improved as revenues grew following new projects mobilising in
Qatar and Saudi Arabia. The UK performed very well during the year
with increased revenues, and improving margins as workload, and
consequently utilisation rates, increased. In Germany market
conditions have been challenging; revenues have fallen, and we
incurred losses for the year.
Revenue and profit
Revenue for the year amounted to GBP296.8m (2013: GBP298.1m).
Net revenue, after deduction of sub-consultant costs, amounted to
GBP255.9m (2013: GBP260.4m). On a constant currency basis revenue
and net revenue increased by 2.7% and 1.3% respectively. The
underlying increase in revenue is primarily attributable to the
effect of acquisitions.
In presenting the group's adjusted profit below, amortisation of
acquired intangible assets, acquisition costs, contingent
consideration adjustments and exceptional items have been excluded
as the directors believe that this assists with understanding the
underlying performance of the group:
2014 2013 Change
%
GBP'000 GBP'000
-------- -------- ---------
Operating profit 7,432 18,563 (60.0%)
Add back :
Amortisation on acquired intangibles,
acquisition costs, and contingent consideration
adjustments 4,755 631 653.6%
Exceptional items 6,771 4,365 55.1%
-------- -------- ---------
Adjusted operating profit 18,958 23,559 (19.5%)
Net finance costs (728) (624) 16.7%
Net pension interest cost (1,271) (1,322) (3.9%)
-------- -------- ---------
Adjusted profit before taxation 16,959 21,613 (21.5%)
======== ======== =========
Adjusted operating profit amounted to GBP19.0m (2013: GBP23.6m).
The adjusted operating margin on net revenue fell to 7.4% (2013:
9.1%) reflective of market conditions in Australia and Germany.
Redundancy costs of GBP1.6m (2013: GBP1.6m) have been absorbed
within adjusted operating profit following actions to more closely
align our resource levels with the mix of projected workload. The
redundancy costs were primarily incurred in Australia (GBP1.0m) as
a result of lower workload. The results were affected by GBP1.2m of
adverse foreign exchange movements compared to those on a constant
currency basis, largely due to the weakening Australian dollar.
Net finance costs increased slightly from GBP1.9m to GBP2.0m, as
a result of the higher costs of the new revolving credit
facilities.
Adjusted profit before taxation amounted to GBP17.0m (2013:
GBP21.6m).
Exceptional items
In Germany the business was loss making in the year and
consequently has been restructured; three offices have been closed,
along with the design centre in Bulgaria, and a number of staffing
changes made in senior positions. As a result an impairment charge
of GBP6.1m has been recognised against acquired goodwill. We have
also incurred GBP0.7m of reorganisation costs comprising redundancy
costs and the office closure costs.
Net exceptional items therefore amounted to GBP6.8m in the
current year.
Exceptional items in the prior year of GBP4.3m related to the
Asia business for goodwill impairment (GBP3.0m) and reorganisation
costs (GBP1.3m).
Taxation
The tax charge for the year was GBP2.0m (2013: GBP4.8m),
equating to a tax rate of 37.6% (2013: 28.7%). The tax rate has
increased due to the effect of exceptional items which are largely
not deductible for tax purposes.
The tax rate on adjusted profit before tax was 18.5% (2013:
24.3%). The rate has reduced due to the mix of the group's profits,
and in particular the lower profits earned in Australia where
profits are taxed at 30.0%.
Earnings per share
Basic earnings per share amounted to 8.44p (2013: 31.17p);
diluted earnings per share was 8.39p (2013: 30.72p). The weighted
average number of ordinary shares during the year was 38.6m (2013:
38.4m), reflecting the shares issued to satisfy options exercised
during the year. After adjusting for the amortisation of acquired
intangibles, acquisition costs, contingent consideration
adjustments and exceptional items, adjusted diluted earnings per
share amounted to 35.25p (2013: 42.27p).
Dividends
The board is recommending an 8% increase in the full year
dividend to 13.0p (2013: 12.0p). A final dividend of 8.5p per share
(2013: 8.0p) is proposed for the year to 31 March 2014 which, if
approved by the shareholders, will be paid on Friday 8 August 2014
to shareholders on the register at Friday 11 July 2014. The full
year dividend is covered 2.7 times by adjusted fully diluted
earnings per share (2013: 3.5 times).
Acquisitions
In the year the group made two acquisitions in Australia for
cash consideration of GBP3.9m; PLD, a specialist, independent
high-voltage simulation, analysis and electrical design business
(GBP1.5m); and Flinders Group, a Queensland based environmental
planning consultancy, with expertise in the energy sector
(GBP2.4m). Cash balances of GBP0.2m were acquired with these
businesses. The fair value of further contingent consideration
payable in relation to these acquisitions is GBP1.6m, dependent on
future business performance. Contingent and deferred consideration
of GBP0.7m was paid during the year in respect of acquisitions made
in prior years.
We are actively exploring further acquisition opportunities in
order to enhance our financial return and improve our market
positioning.
The charge for amortisation of acquired intangibles increased to
GBP3.4m (2013: GBP2.2m), reflecting acquisitions during the year as
well as the full year effect of the BCH and PCS intangible assets
acquired in the prior year. In the year, GBP0.5m (2013: GBP0.3m) of
fees were incurred in relation to acquisitions.
Goodwill on acquired businesses is carried forward at cost, and
reviewed annually for impairment. The goodwill held against the
German business of GBP6.1m was written off during the year; no
other impairments were made following the annual review. Details of
the assumptions used in the calculations are shown in note 10 to
the Annual Report and Accounts.
Contingent consideration adjustments totalling GBP0.9m have been
charged to the income statement as a result of the improved
performance of GWE and BCH during the year against their earn out
targets. In the prior year a credit to the income statement of
GBP1.9m reflected a reduction in contingent consideration expected
to be payable for GWE. This amount has been reclassified as a
contingent consideration adjustment rather than an exceptional
item.
Capital structure
During the year the company issued 139,750 (2013: 135,984) 10p
ordinary shares in relation to exercised share options. As at 31
March 2014 there were 38,910,264 (2013: 38,770,514) fully paid 10p
ordinary shares in issue.
At 31 March 2014 shareholders' equity amounted to GBP79.0m
(2013: GBP95.8m); the decline primarily reflecting foreign exchange
movements, actuarial losses and dividends paid during the year.
Shareholder return
At 31 March 2014 the net asset value per share was 204p (2013:
248p). The closing share price on 31 March 2014 was 425p per share
(2013: 483p); market capitalisation was GBP165.4m (2013:
GBP187.1m).
Financing
At the year end the group had net cash balances of GBP13.2m
(2013: GBP24.3m). Cash balances increased to GBP19.3m (2013:
GBP32.0m) and total borrowings, including overseas overdrafts, were
GBP6.1m (2013: GBP7.7m) providing substantial headroom against
available facilities.
The group's principal committed banking facilities totalling
GBP50.6m are with HSBC and Barclays in the UK. The group has two
four year revolving credit facilities of GBP22.5m expiring in
December 2015 and February 2017 respectively, and other long term
facilities of GBP5.6m. In addition the group has access to a number
of overseas and on demand facilities totalling GBP4.6m. Total
facilities amount to GBP55.2m, all of which are unsecured.
Under the terms of its principal banking facilities the group is
required to operate within certain financial covenants. In line
with market practice these are related to net debt, EBITDA and
interest cover. The group had significant headroom within all of
these covenants throughout the year.
The net finance costs of the group, before pension finance
costs, increased to GBP0.7m (2013: GBP0.6m) reflecting the
increased costs of the new revolving credit facilities. Pension
finance costs amounted to GBP1.3m (2013: GBP1.3m).
Cash flow
Net cash amounted to GBP13.2m at 31 March 2014 (2013: GBP24.3m);
the movement is shown below:
2014 2013
GBPm GBPm
------- ------ ------ ------
Net cash 1 April 24.3 15.6
EBITDA 23.6 27.9
Working capital movements (10.1) 1.6
Other movements (0.5) (0.7)
------- ------
Cash from operations before pension
deficit contributions 13.0 28.8
Pension deficit contributions (2.3) (0.9)
------- ------ ------ ------
Cash from operations 10.7 27.9
Interest (0.6) (0.8)
Tax (3.5) (4.2)
Acquisitions (4.4) (5.2)
Capital expenditure (net) (5.2) (6.2)
Dividend (4.8) (4.2)
FX/Other (3.3) 1.4
------ ------
Net cash 31 March 13.2 24.3
====== ======
Cash generated from operations before pension deficit
contributions of GBP2.3m (2013: GBP0.9m) was GBP13.0m (2013:
GBP28.8m). The proportion of EBITDA converted into operating cash
flow in the year was 55% (2013: 103%).
The working capital outflow amounted to GBP10.1m during the year
(2013: GBP1.6m inflow) principally due to increased revenues and a
greater proportion of work with public sector clients in the Middle
East, where working capital requirements are higher.
Net capital expenditure reduced to GBP5.2m (2013: GBP6.2m) as a
result of office fit out costs incurred in the prior year. Capital
expenditure exceeded depreciation and software amortisation costs
of GBP4.6m (2013: GBP4.4m) due to the expansion in staff numbers
during the year and the consequent hardware and software
requirements.
Tax payments in the year, mainly in Australia, amounted to
GBP3.5m (2013: GBP4.2m).
Cash consideration paid for acquisitions was GBP3.9m (2013:
GBP5.4m) with cash balances acquired of GBP0.2m (2013: GBP0.5m).
Contingent consideration paid during the year amounted to GBP0.7m
(2013: GBP0.3m).
Post-employment benefits
The group operates both defined benefit and defined contribution
schemes as detailed in note 27 to the Annual Report and
Accounts.
The principal defined benefit scheme is the AGPS, for which the
sponsoring employer is Hyder Consulting (UK) Limited. There are no
group guarantees in place in relation to the AGPS and the scheme
was closed to future accrual on 30 April 2011.
The gross deficit in the scheme at 31 March 2014 increased to
GBP21.8m (2013: GBP19.1m); the deficit net of deferred tax
increased to GBP17.4m (2013: GBP14.7m). The increase in the deficit
reflects actuarial losses due to asset returns. The scheme's
triennial valuation to 1 April 2014 is in progress. Fixed annual
contributions for the current year will amount to GBP1.6m plus
scheme expenses; increasing by RPI plus 1% thereafter. Contingent
contributions may become payable annually up to a cap of GBP0.7m,
dependent on the cash performance of the UK business.
The main assumptions in valuing the deficit are disclosed in
note 27. The sensitivities of the AGPS scheme liabilities to
changes in these assumptions are shown below:
Assumption Change in assumption Indicative effect on scheme
liabilities
------------------ --------------------- ----------------------------
Increase / decrease Decrease / increase by
Discount rate by 0.5% 8-9%
Increase / decrease Increase / decrease by
Rate of inflation by 0.5% 5-6%
Longevity Increase by 1 year Increase by 2-3%
The group also operates certain overseas and annuitants schemes,
which principally relate to benefits payable to staff when they
leave employment in the Middle East. Net liabilities in relation to
overseas and annuitants' schemes decreased to GBP9.3m (2013:
GBP10.3m) as a result of foreign exchange movements.
Changes to IAS 19 'Employee Benefits' have taken effect this
year and been applied to the pension financing charge. The prior
year charge has been restated accordingly.
Consolidated income statement for the year ended 31 March
2014
March 2014* March 2013**
--------------------------------- ---------------------------------
Total Total
before before
adjusted Adjusted adjusted Adjusted
items items Total items items Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------- --------- ---------- ---------- --------- ----------
Revenue 2(a) 296,807 - 296,807 298,101 - 298,101
Operating costs (277,849) - (277,849) (274,542) - (274,542)
Amortisation of acquired
intangibles, acquisition
costs and contingent
consideration adjustments 3 - (4,755) (4,755) - (631) (631)
Exceptional items 4 - (6,771) (6,771) - (4,365) (4,365)
---------- --------- ---------- ---------- --------- ----------
Operating profit/(loss) 2(b) 18,958 (11,526) 7,432 23,559 (4,996) 18,563
Finance costs 5 (2,352) - (2,352) (2,296) - (2,296)
Finance income 5 353 - 353 350 - 350
---------- --------- ---------- ---------- --------- ----------
Profit/(loss) before
tax 16,959 (11,526) 5,433 21,613 (4,996) 16,617
---------- --------- ---------- ---------- --------- ----------
Taxation 6 (3,131) 1,087 (2,044) (5,259) 495 (4,764)
---------- --------- ---------- ---------- --------- ----------
Profit/(loss) for the
year 13,828 (10,439) 3,389 16,354 (4,501) 11,853
========== ========= ========== ========== ========= ==========
Profit/(loss) attributable
to:
Owners of the parent 13,698 (10,439) 3,259 16,475 (4,501) 11,974
Non-controlling interests 130 - 130 (121) - (121)
---------- --------- ---------- ---------- --------- ----------
13,828 (10,439) 3,389 16,354 (4,501) 11,853
========== ========= ========== ========== ========= ==========
Earnings per share
(p)
Basic 7 8.44 31.17
Diluted 7 8.39 30.72
Adjusted basic 7 35.47 42.89
Adjusted diluted 7 35.25 42.27
*In presenting the group's adjusted numbers, amortisation of
acquired intangible assets, acquisition costs, contingent
consideration adjustments and exceptional items have been excluded
as the directors believe that this assists with understanding the
underlying performance of the group.
**Restated to reflect the adoption of IAS 19 Employee Benefits
(Revised) (note 1) and amended presentation of exceptional items
(note 4).
Consolidated statement of comprehensive income for the year
ended 31 March 2014
2014 2013*
GBP'000 GBP'000
--------- --------
Profit for the year 3,389 11,853
Other comprehensive (expense)/income
for the year
Items which will subsequently be reclassified
to the income statement:
Foreign exchange movements (10,818) 4,644
Cash flow hedges 142 63
--------- --------
(10,676) 4,707
Items which will not subsequently be
reclassified to the income statement:
Remeasurement loss on defined
benefit pension schemes* (4,240) (4,536)
--------- --------
Total other comprehensive (expense)/income
for the year (14,916) 171
--------- --------
Total comprehensive (expense)/income
for the year (11,527) 12,024
========= ========
Attributable to:
Owners of the parent (11,626) 12,130
Non-controlling interests 99 (106)
--------- --------
(11,527) 12,024
========= ========
All balances are shown net of tax. The effect of tax on the
balances shown is disclosed in note 6.
* Restated to reflect the adoption of IAS 19 Employee Benefits
(Revised) (note 1).
Consolidated statement of changes in equity for the year ended
31 March 2014
Share Share Retained Other Non-controlling Total
capital premium earnings reserves Total interests equity
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- -------- --------- --------- ---------- ---------- --------- ---------------- ---------
At 1 April 2012 3,863 29,789 43,646 9,583 86,881 391 87,272
Profit for the year - - 11,974 - 11,974 (121) 11,853
Foreign exchange movements - - - 4,629 4,629 15 4,644
Cash flow hedges - - - 63 63 - 63
Remeasurement loss on post
employment benefit schemes - - (4,536) - (4,536) - (4,536)
New shares issued 14 - - - 14 - 14
Premium on new shares
issued - 270 - - 270 - 270
Dividends paid 8 - - (4,176) - (4,176) - (4,176)
Share based payments - - 719 - 719 - 719
Transfer of own shares
from EBT - - (326) 326 - - -
--------- --------- ---------- ---------- --------- ---------------- ---------
At 31 March 2013 3,877 30,059 47,301 14,601 95,838 285 96,123
Profit for the year - - 3,259 - 3,259 130 3,389
Foreign exchange movements - - - (10,787) (10,787) (31) (10,818)
Cash flow hedges - - - 142 142 - 142
Remeasurement loss on post
employment benefit schemes - - (4,240) - (4,240) - (4,240)
New shares issued 14 - - - 14 - 14
Premium on new shares
issued - 357 - - 357 - 357
Dividends paid 8 - - (4,809) - (4,809) - (4,809)
Share based payments - - 115 - 115 - 115
Employee trust purchase
of own shares - - - (875) (875) - (875)
Transfer of own shares
from EBT - - (1,381) 1,381 - - -
--------- --------- ---------- ---------- --------- ---------------- ---------
At 31 March 2014 3,891 30,416 40,245 4,462 79,014 384 79,398
========= ========= ========== ========== ========= ================ =========
All balances are shown net of tax. The effect of tax on the
balances shown is disclosed in note 6.
Consolidated balance sheet at 31 March 2014
2014 2013*
Note GBP'000 GBP'000
-------- --------
Assets
Non-current assets
Intangible assets 38,856 46,730
Property, plant and equipment 8,566 9,387
Deferred tax assets 9,746 10,684
57,168 66,801
-------- --------
Current assets
Trade and other receivables 9 126,593 120,098
Cash and cash equivalents 19,287 32,037
145,880 152,135
-------- --------
Liabilities
Current liabilities
Borrowings (1,110) (1,964)
Trade and other payables 10 (73,116) (69,870)
Current tax liabilities (3,485) (3,655)
Provisions (3,430) (3,304)
(81,141) (78,793)
Net current assets 64,739 73,342
-------- --------
Non-current liabilities
Borrowings (4,965) (5,772)
Post employment benefits (31,102) (29,383)
Provisions (510) (966)
Deferred tax liabilities (1,870) (3,185)
Other payables (4,062) (4,714)
(42,509) (44,020)
Net assets 79,398 96,123
======== ========
Equity
Called up ordinary share capital 3,891 3,877
Share premium 30,416 30,059
Retained earnings 40,245 47,301
Other reserves 4,462 14,601
-------- --------
Equity attributable to owners of the parent 79,014 95,838
Non-controlling interests 384 285
Total equity 79,398 96,123
======== ========
*Restated to reflect the adoption of IAS 19 Employee Benefits
(Revised) (note 1) and amendments to the acquisition balance sheet
of BCH Engineering Consultants Pty Ltd.
Consolidated cash flow statement for the year ended 31 March
2014
2014 2013
Note GBP'000 GBP'000
-------- ---------
Cash flows from operating activities
Cash generated from operations 11(a) 10,676 27,868
Net interest paid (570) (796)
Tax paid (3,460) (4,157)
-------- ---------
Net cash generated from operating activities 6,646 22,915
-------- ---------
Cash flows from investing activities
Acquisition of subsidiaries (net of cash
acquired) (4,387) (5,242)
Proceeds from disposal of property, plant and
equipment (incl. software) 100 43
Purchase of property, plant and equipment
(incl. software) (5,167) (6,263)
-------- ---------
Net cash used in investing activities (9,454) (11,462)
-------- ---------
Cash flows from financing activities
Proceeds on issue of shares 371 284
Employee trust purchase of own shares (875) -
Repayments of obligations under finance
leases (65) (269)
Proceeds on issue of new borrowings 2,000 5,000
Repayment of borrowings (2,713) (5,759)
Dividends paid 8 (4,809) (4,176)
-------- ---------
Net cash used in financing activities (6,091) (4,920)
-------- ---------
Net (decrease)/increase in cash and cash equivalents
(including bank overdrafts) (8,899) 6,533
-------- ---------
Cash and cash equivalents at 1 April 30,862 23,218
Effects of exchange rate changes (3,007) 1,111
Cash and cash equivalents at 31 March (including
bank overdrafts) 18,956 30,862
======== =========
Reconciliation of net cash
2014 2013
Note GBP'000 GBP'000
--------- --------
Net (decrease)/increase in cash and cash
equivalents (8,899) 6,533
Decrease in debt 778 1,028
Effect of exchange rate changes (2,968) 1,097
--------- --------
Change in net cash during the year (11,089) 8,658
--------- --------
Net cash at 1 April 24,301 15,643
--------- --------
Net cash at 31 March 11(b) 13,212 24,301
========= ========
Notes to the Financial Statements
1. General information
(a) Basis of preparation
The information within this final results announcement does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006 and should be read in conjunction with the
group's statutory accounts for the year ended 31 March 2014. While
the financial information in these final results has been prepared
in accordance with International Financial Reporting Standards
(IFRS), these results do not in isolation contain sufficient
information to comply with IFRS.
The statutory accounts for the financial year ended 31 March
2014 will be delivered to the Registrar of Companies following the
company's annual general meeting. The auditors have given an
unqualified report on those accounts which does not contain an
emphasis of matter paragraph or any statement under section 498
(2), (3) or (4) of the Companies Act 2006. The company's Annual
Report and Accounts for the financial year ending 31 March 2014 is
expected to be posted to shareholders on 27 June 2014 and will be
available for viewing on the company's website at
www.hyderconsulting.com thereafter.
The condensed consolidated financial statements have been
prepared on a going concern basis under the historical cost
convention, as modified by the valuation of intangible assets
acquired on business combinations, financial instruments and
pension assets and liabilities 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. IFRS are subject to amendment or
interpretation by the International Accounting Standards Board and
there is an ongoing process of review and endorsement by the EU.
For these reasons, it is possible that the information presented in
this report may be subject to change.
The preparation of financial statements in conformity with
generally accepted accounting principles requires the use of
estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reported
period. Although these estimates are based on management's best
knowledge of the amount, events or actions, actual results
ultimately may differ from those estimates.
(b) Principal accounting policies
The group's significant accounting policies under IFRS are
available on the corporate website www.hyderconsulting.com within
the "Investors" section.
The financial statements at 31 March 2013 have been restated to
reflect the effects of the adoption of IAS 19 Employee Benefits
(Revised). The revision requires the financing cost of a defined
benefit pension scheme to be calculated on the net liability and is
effective for the year ended 31 March 2013. The impact of the
restatement increased finance costs by GBP1.3m, reduced finance
income by GBP0.8m and reduced taxation by GBP0.5m. This resulted in
a reduction in profit for the year to 31 March 2013 of GBP1.6m in
the consolidated income statement with a corresponding decrease in
the remeasurement loss on defined benefit pension schemes in the
consolidated statement of comprehensive income.
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, segmental information is presented within the Financial
Statements in respect of geographical segments. The group manages
its business as five segments arranged into 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.
2. Segmental analysis by location of operations (continued)
(a) Segment revenue
Year ended 31 March 2014 Year ended 31 March 2013
-------------------------------------------- ----------------------------------------------
Revenue Revenue
Total from from external
segment Inter-segment external Total segment Inter-segment customers
revenue revenue customers revenue revenue
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------- -------------- ------------- -------------- -------------- --------------
Australia 78,411 (1,109) 77,302 103,316 (765) 102,551
Asia 22,528 (197) 22,331 21,130 (297) 20,833
------------- -------------- ------------- -------------- -------------- --------------
Asia-Pacific 100,939 (1,306) 99,633 124,446 (1,062) 123,384
Middle
East 92,212 (3,881) 88,331 78,222 (3,063) 75,159
UK 88,738 (686) 88,052 76,212 (703) 75,509
Germany 20,894 (103) 20,791 24,445 (396) 24,049
------------- -------------- ------------- -------------- -------------- --------------
Europe 109,632 (789) 108,843 100,657 (1,099) 99,558
------------- -------------- ------------- -------------- -------------- --------------
302,783 (5,976) 296,807 303,325 (5,224) 298,101
============= ============== ============= ============== ============== ==============
(b) Segment results
2014 2013
GBP'000 GBP'000
-------- --------
Australia 8,598 16,120
Asia 429 (1,176)
-------- --------
Asia-Pacific 9,027 14,944
Middle
East 7,692 7,091
UK 6,836 3,416
Germany (1,691) 1,350
-------- --------
Europe 5,145 4,766
Corporate overheads (2,906) (3,242)
-------- --------
Adjusted operating
profit 18,958 23,559
Amortisation of acquired intangibles,
acquisition costs and contingent consideration
adjustments (4,755) (631)
Exceptional items (6,771) (4,365)
-------- --------
Operating profit 7,432 18,563
======== ========
3. Amortisation of acquired intangibles, acquisition costs, and
contingent consideration adjustments
2014 2013
GBP'000 GBP'000
-------- --------
Amortisation of acquired intangibles (3,389) (2,177)
Acquisition costs (509) (306)
Contingent consideration adjustments (857) 1,852
-------- --------
(4,755) (631)
======== ========
In Australia the contingent consideration due for the
acquisitions of GW Engineers Ltd and BCH Engineering Consultants
Pty Ltd was increased by GBP0.6m and GBP0.3m respectively,
following a review of performance against the earn-out targets.
The prior year credit of GBP1.9m relates to the acquisition of
GW Engineers Ltd, where the performance subsequently improved.
4. Exceptional items
2014 2013*
GBP'000 GBP'000
-------- --------
Germany goodwill impairment (6,111) -
Germany restructuring costs (660) -
Asia goodwill impairment - (3,040)
Asia restructuring costs - (1,325)
-------- --------
(6,771) (4,365)
======== ========
In Germany the business was loss-making in the year and
consequently has been restructured, including closure of four
offices. As a result, a goodwill impairment of GBP6.1m has been
recognised and GBP0.7m of reorganisation costs incurred.
Exceptional items in the prior year of GBP4.4m related to Asia
goodwill impairment and related restructuring.
*Restated to exclude contingent consideration adjustments from
exceptional items, now recorded as acquisition related costs (note
3).
5. Net finance costs
2014 2013*
GBP'000 GBP'000
-------- --------
Bank borrowings (499) (459)
Finance leases (11) (20)
Interest rate swaps: cash flow hedges (110) (143)
Amortisation of arrangement fees (234) (126)
Unwinding of discounts on provisions and
other liabilities (227) (226)
Net finance cost on post employment benefit
schemes (1,271) (1,322)
-------- --------
Finance costs (2,352) (2,296)
-------- --------
Investment income 232 159
Unwinding of discounts on trade receivables 121 191
-------- --------
Finance income 353 350
-------- --------
Net finance cost (1,999) (1,946)
======== ========
Finance costs include:
Interest expense on financial liabilities
held at amortised cost (2,015) (1,927)
Interest expense on cash flow hedges recycled
from equity (110) (143)
*Restated to reflect the adoption of IAS 19 Employee Benefits
(Revised) (note 1).
6. Tax
2014 2013*
GBP'000 GBP'000
-------- --------
Current tax
Current year 4,275 4,452
Adjustment in respect of prior years (585) (296)
-------- --------
Total current tax 3,690 4,156
-------- --------
Deferred tax
Current year (1,126) 2,145
Adjustment in respect of prior years 16 (1,397)
Adjustment to deferred tax attributable
to change in rate (536) (140)
-------- --------
Total deferred tax (1,646) 608
-------- --------
Total tax 2,044 4,764
======== ========
The effective tax rate of 37.6% for the year (2013: 28.7%) is
higher than the standard rate of corporation tax in the UK of 23%
(2013:24%). The differences are explained below:
2014 2013*
GBP'000 GBP'000
-------- --------
Profit before tax 5,433 16,617
Tax at UK standard rate of 23% (2013: 24%) 1,250 3,988
Adjustments to tax in respect of prior
years (569) (1,693)
Effect of different tax rates of subsidiaries
operations in other jurisdictions (1,412) 468
Effect of expenses not deductible for tax 2,514 724
Effect of research and development tax
credits (182) (607)
Effect of movement on deferred tax assets
not recognised 337 1,351
Irrecoverable overseas tax 642 673
Effect on deferred tax balances due to
change in UK corporate tax rate (536) (140)
-------- --------
Total tax 2,044 4,764
======== ========
2014 2013*
GBP'000 GBP'000
-------- --------
Tax on items charged to other comprehensive
expense
Deferred tax charge/(credit) in respect of
actuarial loss on defined benefit pension 536 (229)
-------- --------
536 (229)
======== ========
Factors that may affect future tax charges
The Finance Act 2013 included legislation to reduce the main
rate of corporation tax from 23% to 21% from 1 April 2014 and from
21% to 20% from 1 April 2015. The reductions from 23% to 21% and
from 21% to 20% have been included in the calculation of deferred
tax in these Financial Statements.
The adjusted tax rate of 18.5% (2013: 24.3%) is lower than the
prevailing UK corporate tax rate 23% (2013: 24%), due to lower tax
rates in certain overseas jurisdictions in which the group
operates.
*Restated to reflect the adoption of IAS 19 Employee Benefits
(Revised) (note 1).
7. Earnings per share
(a) Number of shares
2014 2013
----------- -----------
Weighted average number of shares in
issue 38,619,815 38,410,442
Effect of dilution
Share options 236,768 566,468
Weighted average shares (diluted) 38,856,583 38,976,910
=========== ===========
(b) Earnings used in the calculation of earnings per share
2014 2013*
GBP'000 GBP'000
-------- --------
Profit attributable to owners of the
parent 3,259 11,974
Add back amortisation of acquired intangibles,
acquisition costs and contingent consideration
adjustments 4,755 2,483
Add back exceptional items 6,771 2,513
Less tax on adjusted items (1,087) (495)
-------- --------
Adjusted earnings 13,698 16,475
======== ========
(c) Earnings per share
2014 2013*
p p
------- -------
Basic earnings per share 8.44 31.17
Add back amortisation of acquired intangibles,
acquisition costs and contingent consideration
adjustments 12.31 6.46
Add back exceptional items 17.53 6.54
Less tax on adjusted items (2.81) (1.28)
------- -------
Adjusted basic earnings per share 35.47 42.89
======= =======
2014 2013*
p p
------- -------
Diluted earnings per share 8.39 30.72
Add back amortisation of acquired intangibles,
acquisition costs and contingent consideration
adjustments 12.24 6.37
Add back exceptional items 17.42 6.45
Less tax on adjusted items (2.80) (1.27)
------- -------
Adjusted diluted earnings per share 35.25 42.27
======= =======
*Restated to reflect the adoption of IAS 19 Employee Benefits
(Revised) (note 1).
8. Dividends
2014 2013
GBP'000 GBP'000
-------- --------
Dividends charged to equity in the year 4,809 4,176
======== ========
Equity - Per Ordinary 10p share
Final dividend paid (pence) 8.00 7.00
Interim dividend paid (pence) 4.50 4.00
As at 31 March 2014, the employee benefit trust had an agreement
in place to waive dividends on 331,670 ordinary shares (2013:
659,727). This arrangement reduced the dividends paid in the year
by GBP43,000 (2013: GBP78,000).
The directors are proposing a final dividend of 8.50p per share
(2013: 8.00p), with an aggregate cost of GBP3,279,000. In
accordance with IFRS the dividend has not been recognised in the
Financial Statements but, if approved by shareholders, will be paid
on 8 August 2014 to shareholders on the register as at 11 July
2014.
9. Trade and other receivables
2014 2013
GBP'000 GBP'000
-------- --------
Trade receivables 58,019 61,799
Less: Provision for impairment of receivables (4,083) (7,161)
-------- --------
Trade receivables - net of provisions 53,936 54,638
Amounts recoverable on contracts 62,496 52,907
Other receivables 4,940 6,915
Prepayments and accrued income 5,153 5,464
Derivative financial instruments 38 -
Corporation tax recoverable 30 174
-------- --------
126,593 120,098
======== ========
10. Trade and other payables
2014 2013
GBP'000 GBP'000
-------- --------
Trade payables 11,336 9,099
Payments in advance on contracts 28,451 27,254
Other tax and social security payable 5,799 7,597
Other payables 10,374 12,062
Accruals 13,650 11,739
Lease incentives 455 472
Derivative financial instruments 82 123
Contingent and deferred consideration 2,969 1,524
-------- --------
73,116 69,870
======== ========
11. Cash flow note
(a) Cash flows from operating activities
2014 2013
GBP'000 GBP'000
-------- --------
Profit for the financial
year 3,389 11,853
Adjustments for:
Taxation 2,044 4,764
Depreciation 2,931 2,806
Amortisation of software 1,686 1,545
Amortisation of acquired intangibles, acquisition
costs and contingent consideration adjustments 4,755 631
Exceptional items 6,771 4,365
Interest receivable (353) (350)
Interest payable and similar
charges 2,352 2,296
-------- --------
EBITDA 23,575 27,910
(Profit)/loss on disposal of property,
plant and equipment (20) 27
Fair value (gain)/loss
on financial instruments (49) 47
Share option costs 115 719
Decrease in provisions (416) (1,093)
Decrease in post employment benefits (123) (405)
Deficit contributions to the AGPS defined
benefit pension scheme (2,286) (927)
Changes in working capital:
(Increase)/decrease in trade and other
receivables (5,322) 64
(Decrease)/increase in trade and
other payables (4,798) 1,526
-------- --------
Cash generated from operations 10,676 27,868
======== ========
(b) Reconciliation of movement in net cash
At 1 April Non-cash Exchange At 31 March
2013 Cash flow movement movement 2014
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------- ---------- --------- --------- ------------
Cash at bank 32,037 (9,674) - (3,076) 19,287
----------- ---------- --------- --------- ------------
Bank overdraft (1,175) 775 - 69 (331)
Debt due within 1 year (713) 713 (713) - (713)
Debt due after 1 year (5,625) - 713 - (4,912)
Finance leases due within
1 year (76) 65 (66) 11 (66)
Finance leases due after
1 year (147) - 66 28 (53)
----------- ---------- --------- --------- ------------
(7,736) 1,553 - 108 (6,075)
----------- ---------- --------- --------- ------------
24,301 (8,121) - (2,968) 13,212
=========== ========== ========= ========= ============
The cash balance includes GBP2.8m (2013: GBP5.2m) that is
restricted and not available to the group for general use.
12. Post balance sheet event
Effective 1 June 2014 the group acquired nuclear safety
specialist SR(3) C Management Limited in the UK, for initial
consideration of GBP3.5m in cash. A maximum contingent
consideration of GBP3.0m is payable dependent on future business
performance over the next 2 years.
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. Risks and uncertainties
The group faces a number of risks, which are regularly monitored
by the board. Risk management and internal control systems provide
a means of identifying, evaluating and managing the significant
risks facing the group. However these systems can only operate to
mitigate risk rather than eliminate it completely. The group's
principal risks and uncertainties will be described in the group's
Annual Report and Accounts. These relate to changes in market
conditions, management of projects, contractual disputes and
claims, recruitment, utilisation and retention of key staff,
management of working capital, defined benefit pension schemes,
acquisition integration, crisis event/business continuity, health
and safety, foreign exchange movements, the global regulatory
environment and economic conditions.
15. Cautionary Statement
This final results announcement contains certain forward-looking
statements with respect to the financial condition, performance,
results, strategy and objectives, operations and businesses of the
group. By their nature, these statements involve uncertainty
because they relate to future events and circumstances which are
beyond the group's control. As a result the group's actual future
financial condition, performance and results may differ materially
from the plans or expectations expressed or implied within any
forward-looking statement. Any forward-looking statements reflect
knowledge and information available at the date of preparation of
this final results announcement and the company assumes no
obligation to update or revise any forward-looking statement,
resulting from new information, future events or otherwise.
Liability arising from anything in this final results announcement
shall be governed by English law. Nothing in this final results
announcement should be construed as a profit forecast.
16. Statement of directors' responsibilities
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company's website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
The responsibility statement below has been prepared in
connection with and is included in the company's full Annual Report
and Accounts for the year ended 31 March 2014. Certain parts of
that report are not included within this final results
announcement:
"The directors confirm that to the best of their knowledge:
-- the group and company financial statements in this Annual
Report, which have been prepared in accordance with IFRS and UK
GAAP respectively, give a true and fair view of the assets,
liabilities, financial position and profit or loss of the group and
the company taken as a whole; and
-- the Strategic Report includes a fair review of the
development and performance of the business and the position of the
group and the company taken as a whole, together with a description
of the principal risks and uncertainties that they face.
The directors consider that the Annual Report and Financial
Statements, taken as a whole, are fair, balanced and understandable
and provide the information necessary for shareholders to assess
the company's performance, business model and strategy."
The directors of Hyder Consulting PLC at the date of this
announcement are listed below:
Sir Alan Thomas
Ivor Catto
Russell Down
Elisabeth Astall
Jeffrey Hume
Kevin Taylor
Paul Withers
This responsibility statement was approved by the board and
signed on its behalf by
Ivor Catto Russell Down
Chief Executive Group Finance Director
11 June 2014 11 June 2014
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR BRGDLCBBBGSG
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
