New chief exec’s initiatives start to pay off for Hyder

In its pre-close statement, Hyder Consulting confirms trading in line with expectations and ahead of the previous year. It also announced a better than expected net debt position - at £7 million compared to previous market forecasts in excess of £24 million - due to improved cash generation initiatives.

The international advisory, engineering design and environmental consultancy expects to announce results for the year ended 31 March 2009 on 8 June.

The group has now “substantially completed” the restructuring and redundancy plan announced in February (Environment Analyst, 12-Feb-09). On top of the streamlining of operations, the new chief executive Ivor Catto (formerly of Atkins) who joined in December last year has focused on changing the business culture through strengthening management, exiting non-core markets/sectors, focusing on core sectors (transport, utilities, property and environment & energy) and improving staff utilisation, cash flow and account management.

The statement also refers to the collection of trade debt as being “more difficult” in the current economic climate. However, management believes that because Hyder has been a longstanding player in the Middle East – where this is a particular issue – the “quality” of its customers will pay off.

With 65% of revenues derived from overseas, Hyder’s diversity, strong order book (which has grown 16% since the previous interim period) and low gearing they remain confident for the future.

In the 48 hours following the announcement, Hyder’s shares rallied by 67%, rising to 127p – although they are still significantly down on the heights of 400p+ seen a year ago.

• Hyder pre-close statement