Payment on some big Australian contracts helped Hyder Consulting (HYC) turn in a record first-half performance, and left the engineering consultant flush with cash to take advantage of its growing order book - up from £291m to £353m. Adjusted pre-tax profits were up 28 per cent to £12m in the period, and chief executive Ivor Catto says he is "bewildered" by the share price. "We feel we are very undervalued," says Mr Catto.
The Australian business performed strongly increasing revenue by 25 per cent to £56.3m, which was boosted by the timing of payments, and profits rose £3.5m to £9.7m. The Middle East enjoyed record Qatar contract wins and profits were up £1.7m, to £2.7m. Twenty per cent more staff were taken on in the region to cope with demand. Overall group headcount was up 8 per cent at 3,936. In Asia, delayed Chinese property contracts pushed the region to a loss, and in the UK and Germany difficult markets resulted in falling profits.
Broker Investec forecasts adjusted pre-tax profits of £23.5m, giving EPS 46.2p (2012: £21.6m/ 44.3p).
HYDER CONSULTING (HYC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 405p | MARKET VALUE: | £157m | |
| TOUCH: | 400-408p | 12-MONTH HIGH: | 430p | LOW: 339p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 230p* | NET CASH: | £15m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 139 | 8.1 | 16.8 | 2.00 |
| 2012 | 150 | 11.0 | 22.0 | 4.00 |
| % change | +8 | +36 | +31 | +100 |
Ex-div: 12 Dec Payment: 17 Jan *Includes intangible assets of £42m, or 110p per share. | ||||
