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Hyder Consulting well-ahead of forecasts

Strong trading down under means first-half pre-tax profits are well ahead of expectations, leading to broker upgrades and a surge in the share price
October 2, 2012

Construction consultant Hyder Consulting (HYC) is delivering down under. Better-than-expected performance-related bonuses in Australia helped overall trading in the Asia Pacific region despite contract delays and small losses in China. Broker N+1 Brewin lifted its forecast for full-year adjusted pre-tax profit by £1m to £23.5m, giving EPS of 45.8p.

IC TIP: Buy at 420p

Elsewhere, the performance was more mixed. In the Middle East, trading remains in line with plans and well ahead of the previous year, while the UK conditions continue to be 'challenging' and management now expects trading there to be behind target after the highways business was particularly weak.