Hyder more choosy in China after contract delays

Hyder Consulting joined the growing throng of companies reporting 'challenging' conditions, though the multi-national design and engineering consultancy said it is doing all right in the circumstances.

The firm's Australian business has continued to perform well, with the acquisition of GW Engineers providing new opportunities in the resources sector and the integration is progressing as planned.

In China, following some contract delays, the firm has concentrated its resources further to those areas and sectors where it has an established competitive advantage.

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In the Middle East the company's results are improving as it mobilises on a number of new projects in Qatar and Saudi Arabia. Working capital in the region has been reduced since the year end due to improved payment terms on new public sector projects and progress on delayed contract settlements.

In Europe results are in line with the firm's plan.

"In the UK rail sector sales and new opportunities have been particularly strong in the period. We are working with an increasing number of German clients internationally, particularly in the Middle East," Hyder said.

"Although market conditions remain challenging, the group's favourable market positioning, strong order book, broad international base and balance sheet strength give us confidence for the year ahead."

The group remains in a strong financial position and has operated throughout the period with substantial net cash balances, and significant headroom against its banking facilities.

The share price fell 3.31% to 365p by 11:15.

NR