Hyder Consulting PLC
LSE : HYC

November 28, 2008 02:00 ET

Half-yearly report

Hyder Consulting PLC
28 November 2008


                                Hyder Consulting PLC (HYC.L)

                     Half Year results for the six months ended 30 September 2008


Hyder Consulting PLC, the international advisory and design consultant, is pleased to announce its Half
Year results for the period ended 30 September 2008.

Highlights

*     Order book up 10% from 31 March 2008 to £346m

*     Revenue up 39% to £151.6m, of which 65% was from overseas

*     Adjusted* operating profit up 33% to £8.9m

*     Adjusted* net operating margin 7.0% (2007: 7.3%)

*     Adjusted* earnings per share up 18% to 17.43p (2007: 14.82p)

*     Interim dividend up 50% to 1.35 pence per share

*     Integration of acquisitions progressing well


* before exceptional items and amortisation of intangible assets arising on business combinations.



Sir Alan Thomas, Chairman of Hyder Consulting PLC commented:

"I am pleased to report that our half year results are well ahead of the prior year and in line with
expectations.  Our international spread, strong order book and low gearing position us well in the
current climate."


Interim Management Report

I  am  pleased to report that our half year results are well ahead of the prior year and in  line  with
expectations.


Results

Our  order  book  has increased by 10% from 31 March 2008 to £346m, and by 29% from 30 September  2007.
Approximately two thirds of this order book is outside the UK.

Revenue  and  net  fee for the period increased by 39% to £151.6m (2007: £108.7m)  and  £127.1m  (2007:
£91.8m)  respectively, with 65% of revenue generated from overseas.  Organic growth in revenue and  net
fee was 24%, driven mainly by our overseas businesses.

Adjusted  operating profit increased by 33% to £8.9m (2007: £6.7m), with a contribution of  £1.7m  from
acquisitions  made  in  the prior year.  Operating profit, after exceptional items,  was  £6.7m  (2007:
£6.1m).

Our adjusted net operating margin was 7.0% compared with 7.3% for the same period last year, largely as
a  result  of  tighter  margins  in  the UK.  In Germany our operating margins  improved  significantly
following  the  acquisitions  of Seib and Voigt, whilst in the Middle East  and  Asia  Pacific  regions
margins  have been sustained on significantly higher net revenues.  Corporate overheads have  increased
by  39%  as  a  result of the increased scale of the business and one-off costs associated  with  Board
succession.

Net  finance  costs  increased to £1.1m (2007: £0.5m) primarily as a result of  the  unwinding  of  the
discount  on acquisition consideration and increased notional interest costs on the pension scheme  due
to higher discount rates.

The effective rate of tax is 10.7% (2007: 12.9%) reflecting an increased proportion of profits from the
Middle East at low tax rates, and Research and Development tax credits in the UK and Australia.

Adjusted  earnings per share increased by 18% to 17.43p (2007: 14.82p).  Basic earnings per share  were
13.18p  (2007: 13.47p).  Exceptional items relating to the restructuring of the UK region, and in  2007
gains relating to the pension scheme, are excluded from the calculation of adjusted earnings per share.

We now employ over 5,000 people, an increase of approximately 20% over the last year.


Dividend

In  recognition of the growth in profits the Board has declared a 50% increase in the interim  dividend
to 1.35p (2007: 0.9p) payable on 12 January 2009 to shareholders on the register at 12 December 2008.


Funding

Net  debt was £8.7m at 30 September 2008, compared to £11.1m at 31 March 2008.  The reduction of  £2.4m
reflects the collection of contract payments which were delayed over the year end, partially offset  by
increases  in working capital arising from higher revenues.  Our long term revolving credit  facilities
with  our principal banks total £38m, giving headroom of approximately £30m.  These facilities will  be
due  for renewal in April 2012 and February 2013.  Our balance sheet is strong and we shall sustain our
efforts to manage working capital efficiently.


Pension fund

The  deficit in the AGPS as reported under IAS19 reduced by £2.3m net of deferred tax to £15.7m. During
the  period  the  Group  made cash contributions of £1.8m.  Actuarial gains of  £2.3m  were  recognised
following increased discount rates, mitigated by lower than expected returns on the fund's assets.  The
deficit will increase in the short term should discount rates reduce.


Regional review

UK / Europe

Revenue increased by 16% to £65.0m (2007: £55.9m) whilst operating profits increased 8% to £4.8m (2007:
£4.4m).  Turnover growth, excluding the two acquisitions in Germany, was 3%.

In the UK water sector, our resources continue to be well utilised despite the slowdown towards the end
of the AMP4 cycle and we are well prepared for the transition to AMP5.  Our transportation business has
performed well over the period, although opportunities in the rail sector have been slower to  come  to
fruition than anticipated.  The private sector property market, which represents less than 5% of  Group
revenue,  has  slowed although we have successfully redeployed resources to Middle East projects  where
our workload remains strong.

We  made  changes  to  our  operations in the UK during the period  in  order  better  to  address  the
opportunities  in the present conditions.  This included a small number of redundancies and  associated
costs which are shown as exceptional items.

In  Germany  we are pleased with the performance of our two recent acquisitions, Seib and Voigt,  which
work  primarily  on  public sector infrastructure projects, positioning us well in the  current  German
economic climate.  Their integration into the wider Group is progressing well.


Middle East

Revenue  increased  by  80% to £43.7m (2007: £24.3m) whilst operating profits increased  77%  to  £3.6m
(2007: £2.0m).  Organic turnover growth was 53%.

Our  business  in the Middle East has grown substantially over the last year and we now  employ  almost
1,700 people in the region.  We have a long established presence in the UAE, Qatar and Bahrain, and are
benefiting  from  the  client relationships, many of them longstanding, that we  have  developed.   Our
substantial  order  book, which is of high quality, has increased 78% over the last  12  months  which,
despite some slowdown in the property market in Dubai, gives us confidence for the future.

The  acquisition  of Holfords has broadened our service offering and we are expanding its  geographical
application  across our regional networks.  The integration is progressing well and in  line  with  our
expectations.


Asia Pacific

Revenue increased by 51% to £42.9m (2007: £28.5m), net fees by 49%, and operating profits increased  by
46% to £2.5m (2007: £1.7m).  Organic turnover growth was 39%.

In  Australia,  we  are  working on four significant Alliance contracts  which  provide  us  with  good
visibility  of  future earnings.  Further attractive opportunities are available to us in  the  buoyant
Queensland  infrastructure market, which will help to mitigate the effects of recent cut-backs  by  the
New South Wales State Government.

In  East  Asia, our Hong Kong business has performed well, showing a significant improvement  over  the
prior year.  We have continued to grow our businesses in China and Vietnam and are investing in further
opportunities there.


Board of Directors

Tim  Wade and Simon Hamilton-Eddy are retiring from the Board as Chief Executive and Financial Director
on  30  November  and  10  December respectively.  Under their leadership the Group  has  substantially
improved  its  operating performance and developed its capability following the management  buy-out  in
2001  and  the reverse takeover in 2002.  They leave the Group well placed for the future and  I  would
like to express the Board's appreciation to both of them.

Ivor  Catto  will  join  the  Board on 1 December as Chief Executive, having previously  been  Managing
Director  of  W  S  Atkins's  largest division, and Russell Down will become  Finance  Director  on  11
December,  stepping up from his current role of Group Head of Finance and Development.  I am  delighted
to welcome them both to the Board.


Principal risks and uncertainties

The  Group operates a structured risk management process regularly monitored by the Board, which  seeks
to  identify, evaluate and prioritise risk, and review mitigation activities.  The principal risks  and
uncertainties facing the Group relate to significant changes in market conditions, contractual disputes
and claims, recruitment and retention of key staff, project execution, and foreign exchange movements.


Outlook

We  have  already made changes in response to the economic climate and will continue to  adapt  in  the
light  of  market  conditions.   Whilst  the scale and spread of the  economic  slowdown  creates  some
uncertainty  in  the medium term, our geographic reach and balance of public sector and  infrastructure
projects will mitigate the potential effects on the Group.

Over  65%  of our revenues are generated from overseas markets.  This international spread, our  strong
order  book,  and  low  gearing position us well in the present climate.   We  are  responsive  to  the
opportunities  as well as challenges in our geographies, and will be alert to acquisition opportunities
which  may  arise  in  these  conditions.  We have confidence in meeting market  expectations  for  the
remainder of the financial year, with approximately 60% of the next 12 months' revenue secured.

I  would like to take this opportunity to thank all members of the Hyder team for their commitment  and
contribution to these results.



Sir Alan Thomas
Chairman
28 November 2008



Consolidated Income Statement for the six months ended 30 September 2008 (unaudited)
                                                                                                   
                                                        Six months       Six months       Year ended
                                                          ended 30         ended 30        31 March
                                                         September        September            2008
                                                              2008             2007
                                                Note         £'000            £'000           £'000
                                                      ------------------------------------------------
                                                                                             
                                                                                             
 Revenue                                          2        151,558          108,733         233,672
                                                                                          
 Cost of sales                                                                            
     Direct project costs                                 (24,425)         (16,965)        (36,765)
     Other operating costs                                (87,193)         (65,242)       (139,325)
                                                      ------------------------------------------------
                                                                                          
 Gross profit                                               39,940           26,526          57,582
                                                      ------------------------------------------------
                                                                                          
 Administration expenses                                  (33,210)         (20,464)        (44,167)
------------------------------------------------------------------------------------------------------
                                                                                          
 Group operating profit                           2          6,730            6,062          13,415
                                                      ------------------------------------------------

------------------------------------------------------------------------------------------------------         
 Analysed as:                                                                             
                                                                                          
 EBITA (Pre-exceptional items)                               9,496            7,154          16,041
 Amortisation of intangible assets                                                        
    - Software                                               (620)            (446)         (1,004)
    - Business combinations                                (1,586)            (781)         (1,802)
 Restructuring costs                                         (560)                -               -
 Pension scheme settlements and curtailments                     -              135             180
                                                      ------------------------------------------------
 Group operating profit                           2          6,730            6,062          13,415
                                                      ------------------------------------------------

------------------------------------------------------------------------------------------------------
                                                                                          
                                                                                          
 Finance costs                                    3        (1,255)            (628)         (1,641)
 Finance income                                   3            198              119             974
                                                      ------------------------------------------------
                                                                                          
 Profit before taxation                                      5,673            5,553          12,748
                                                                                          
 Taxation                                                    (607)            (717)         (1,575)
                                                      ------------------------------------------------
                                                                                          
 Profit for the financial period                             5,066            4,836          11,173
                                                      ------------------------------------------------
                                                      ------------------------------------------------
                                                                                                     
 Profit attributable to minority interests                       -                3               3
 Profit attributable to equity shareholders                  5,066            4,833          11,170
------------------------------------------------------------------------------------------------------
                                                                                          
 Earnings per share (pence)                                                               
 Basic                                            4          13.18            13.47           30.91
 Diluted                                          4          13.14            13.10           30.04
------------------------------------------------------------------------------------------------------

 Equity - Ordinary 10p shares                                                                
 Dividends (£'000) - paid                         5            789              502             823
 Dividend per share (pence)                       5           2.10             1.40            2.30
------------------------------------------------------------------------------------------------------
 Dividends (£'000) - proposed                                  509              323             792
 Dividend per share (pence)                                   1.35             0.90            2.10

All activities are continuing.



Consolidated Statement of Recognised Income and Expense (unaudited)
                                                                                                   
                                               Six months        Six months           Year ended
                                                 ended 30          ended 30             31 March
                                                September         September                 2008
                                                     2008              2007
                                                    £'000             £'000                £'000
                                                 ----------------------------------------------------
                                                                                           
 Profit for the financial period                    5,066             4,836               11,173
                                                                                           
 Exchange adjustments                               1,507                85                3,156
 Cash flow hedges recognised                           44                 -                 (99)
 Transfer from minority interest                        -                16                   16
 Actuarial gains / (losses) on defined benefit      2,362           (1,268)                5,352
 pension schemes
 Deferred taxation on actuarial (gains) / losses    (661)               355              (1,682)
 Effect of UK tax rate change                           -             (775)                (663)
                                                 ----------------------------------------------------
                                                                                           
 Net income / (expense) not recognised in the       3,252           (1,587)                6,080     
 Income Statement                                                                        
                                                 ----------------------------------------------------
                                                                                           
 Total recognised income for the financial period   8,318             3,249               17,253
                                                 ----------------------------------------------------
                                                 ----------------------------------------------------
                                                                                           
                                                                                           
 Equity shareholders                                8,318             3,246               17,250
 Minority interests                                     -                 3                    3
                                                 ----------------------------------------------------
                                                                                         
                                                    8,318             3,249               17,253
                                                 ----------------------------------------------------
                                                 ----------------------------------------------------
      

Consolidated Balance Sheet as at 30 September 2008 (unaudited)

                                                                                                    
                                                         As at 30          As at 30         As at 31
                                                        September         September            March
                                                             2008              2007             2008
                                                Note        £'000             £'000            £'000
                                                     ----------------------------------------------------
 Non-current assets                                                                       
 Intangible assets                               9         42,987            20,850           45,452
 Property, plant and equipment                   9         12,825            10,220           11,142
 Deferred taxation assets                                   7,531            11,003            8,559
                                                     ----------------------------------------------------
                                                           63,343            42,073           65,153
                                                     ----------------------------------------------------
                                                                                        
 Current assets                                                                         
 Trade and other receivables                              113,770            83,977         102,718
 Corporation tax recoverable                                1,066             2,098           1,866
 Cash and cash equivalents                                 17,230             9,836          14,823
                                                     -----------------------------------------------------
                                                          132,066            95,911         119,407
                                                     ----------------------------------------------------
                                                                                        
 Current liabilities                                                                    
 Trade and other payables                                (74,775)          (50,727)        (64,461)
 Current taxation liabilities                             (1,110)           (1,771)         (1,694)
 Financial liabilities                                                                  
    - Borrowings                                          (2,387)           (6,396)         (2,696)
 Provisions                                      6        (2,830)           (3,046)         (2,930)
                                                     ----------------------------------------------------
                                                         (81,102)          (61,940)        (71,781)
                                                     ----------------------------------------------------

                                                     ---------------------------------------------------
 Net current assets                                        50,964            33,971          47,626
                                                     ----------------------------------------------------
                                                                                        
 Non-current liabilities                                                                
 Financial liabilities                                                                  
    - Borrowings                                         (23,495)           (9,034)        (23,252)
 Post employment benefits                        10      (25,077)          (33,922)        (27,363)
 Provisions                                      6          (328)             (237)           (367)
 Deferred taxation liabilities                            (3,729)           (2,583)         (4,111)
 Other non-current liabilities                            (4,411)           (1,744)         (7,952)
                                                     ----------------------------------------------------
                                                         (57,040)          (47,520)        (63,045)
                                                     ----------------------------------------------------
                                                                                        
 Net assets                                                57,267            28,524          49,734
                                                     ----------------------------------------------------
                                                     ----------------------------------------------------
                                                                                        
 Shareholders' equity                                                                   
 Called up ordinary share capital                           3,773             3,591           3,770
 Share premium account                                     28,755            21,411          28,667
 Retained earnings                                         22,006             5,202          15,939
 Other reserves                                             2,707           (1,733)           1,332
                                                     ----------------------------------------------------
                                                                                        
 Total shareholders' equity                                57,241            28,471          49,708
 Minority interests in equity                                  26                53              26
                                                     ----------------------------------------------------
                                                                                        
 Total equity                                    7         57,267            28,524          49,734
                                                     ----------------------------------------------------
                                                     ----------------------------------------------------
      
      
      
Consolidated Statement of Cash Flows (unaudited)
                                                                                                     
                                                       Six months        Six months        Year ended
                                                         ended 30          ended 30          31 March
                                                        September         September              2008
                                                             2008              2007
                                                Note        £'000             £'000             £'000
                                                     ----------------------------------------------------
                                                                                            
 Cash flows from operating activities                                                       
 Cash generated from / (used in) operations      8          8,473           (6,393)             4,195
 Interest received                                            198               119               974
 Interest paid                                              (844)             (521)           (1,442)
 Taxation paid                                              (527)           (1,162)           (1,805)
                                                     -----------------------------------------------------
                                                                                        
 Net cash generated from / (used in)                        7,300           (7,957)             1,922
 operating activities
                                                     ----------------------------------------------------
                                                                                         
 Cash flows from investing activities                                                    
 Acquisition of subsidiaries (net of cash                   (257)           (2,852)          (17,523)
 acquired) and payment of deferred
 consideration
 Proceeds from sale of property, plant and                    194                10                40
 equipment
 Purchase of minority interests                                 -             (129)             (159)
 Purchase of property, plant and equipment                (4,102)           (1,369)           (4,067)
                                                     ----------------------------------------------------
                                                                                         
 Net cash used in investing activities                    (4,165)           (4,340)          (21,709)
                                                     ----------------------------------------------------
                                                                                         
 Cash flows from financing activities                                                    
 Net cash from movements in issued share                    (232)                83             4,020
 capital
 Finance lease principal payments                           (686)             (661)           (1,665)
 Net proceeds from issue of new borrowings                 13,322             6,411            31,619
 Repayment of borrowings                                 (12,896)           (1,822)          (17,447)
 Dividends paid to shareholders                  5          (789)             (502)             (823)
                                                     ----------------------------------------------------
                                                                                         
 Net cash (used in) / generated from                      (1,281)             3,509            15,704
                                                     ----------------------------------------------------
 financing activities
                                                                                         
 Effects of exchange rate fluctuations                        553              (39)               243
                                                     ----------------------------------------------------
                                                                                         
 Net increase / (decrease) in cash and cash                 2,407           (8,827)           (3,840)
 equivalents
                                                     ----------------------------------------------------
                                                                                         
 Cash and cash equivalents at 1 April                      14,823            18,663            18,663
                                                     ----------------------------------------------------
                                                                                         
 Cash and cash equivalents at period end                   17,230             9,836            14,823
                                                     ----------------------------------------------------
                                                     ----------------------------------------------------


Notes to the Consolidated Financial Statements (unaudited)

1. General information

(a) Basis of preparation

This  condensed unaudited consolidated financial information for the half year ended 30 September  2008
has  been  prepared in accordance with the Disclosure and Transparency Rules of the Financial  Services
Authority  and with IAS 34, "Interim financial reporting" as adopted by the European Union  (EU).   The
half  year  condensed  consolidated financial report should be read  in  conjunction  with  the  annual
financial  statements  for the year ended 31 March 2008, which have been prepared  in  accordance  with
International Financial Reporting Standards (IFRS) as adopted by the EU.

The  condensed consolidated half yearly financial statements have been prepared in accordance with IFRS
as  adopted by the EU, and those parts of the Companies Act 1985 related to reporting under  IFRS  that
the  Directors  expect  to  be  applicable as at 31 March 2009.   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.

The  financial information does not constitute statutory accounts within the meaning of section 240  of
the  Companies Act 1985.  The financial information relating to the year ended 31 March 2008  has  been
delivered  to the Registrar of Companies.  The report of the auditors on these accounts was unqualified
and did not contain a statement under Section 237(2) or (3) of the Companies Act 1985.

(b) Principal accounting policies

The  accounting policies adopted are consistent with those of the annual financial statements  for  the
year ended 31 March 2008, as described in those financial statements.

The  Group's  significant  accounting  policies under IFRS  are  available  on  the  corporate  website
www.hyderconsulting.com within the "Investors" section.


2.   Segmental analysis by location of operations

Reflecting  the  Group's management and internal reporting structure, primary segmental information  is
presented  within the Financial Statements in respect of geographical segments.  The Group manages  its
business  on  a  global basis with operations in three main geographical regions,  UK  /  Europe,  Asia
Pacific  and the Middle East.  The UK is the home country of the parent.  Inter-segment revenue relates
to  contracts priced on an arm's length basis.  The secondary reporting format is by business  segment.
The  Directors  consider that there is only one secondary business segment, being  engineering  design,
planning,  environmental  and  management consultancy.  Therefore, the disclosures  for  the  secondary
segment have already been given in these Financial Statements.

(a)  Segment revenue
                                     2008       Inter-      Six months    Six months    Year ended
                                               segment        ended 30      ended 30      31 March
                                               revenue       September     September          2008
                                                  2008            2008          2007
                                    £'000        £'000           £'000         £'000         £'000
                             --------------------------------------------------------------------------
                                                                                            
 UK / Europe                                                                                           
   - Continuing operations         65,104        (153)          64,951        55,141       113,051
   - Acquisitions                       -            -               -           769         5,191
 Asia Pacific                                                                               
   - Continuing operations         44,298      (1,370)          42,928        28,512        60,964
   - Acquisitions                       -            -               -             -           605
 Middle East                                                                                
   - Continuing operations         48,534      (4,855)          43,679        24,311        53,183
   - Acquisitions                       -            -               -             -           678
                             --------------------------------------------------------------------------
                                                                                            
                                  157,936      (6,378)         151,558       108,733       233,672
                             --------------------------------------------------------------------------
                             --------------------------------------------------------------------------

(b)  Segment results
                                                                                                      
 Regional operating profit                                                                  
 UK / Europe                                                                                
   - Continuing operations                                       4,801         4,204         8,799
   - Acquisitions                                                    -           226           946
 Asia Pacific                                                                               
   - Continuing operations                                       2,516         1,719         3,543
   - Acquisitions                                                    -             -           116
 Middle East                                                                               
   - Continuing operations                                       3,600         2,032         4,508
   - Acquisitions                                                    -             -            56
 Corporate overheads                                           (2,041)       (1,473)       (2,931)
                                                            ----------------------------------------
                                                                                             
                                                                 8,876         6,708        15,037
 Amortisation - business combinations                                                       
 UK / Europe                                                                                
   - Continuing operations                                       (667)         (335)         (672)
   - Acquisitions                                                    -         (117)         (389)
 Asia Pacific                                                                               
   - Continuing operations                                       (521)         (290)         (551)
   - Acquisitions                                                    -             -          (59)
 Middle East                                                                               
   - Continuing operations                                       (398)          (39)          (79)
   - Acquisitions                                                    -             -          (52)
                                                                                            
 Exceptional items                                                                           
 UK Restructuring costs                                          (560)             -             -
 UK Pension scheme settlements                                       -           320           350
 UK Associated pension settlement costs                              -         (185)         (170)
                                                            ----------------------------------------
                                                                                            
 Group operating profit                                          6,730         6,062        13,415
                                                            ----------------------------------------
                                                            ----------------------------------------


3.   Net finance costs
      
                                                          Six months     Six months          Year
                                                            ended 30       ended 30      ended 31
                                                           September      September         March
                                                                2008           2007          2008
                                                               £'000          £'000         £'000
                                                            ----------------------------------------
                                                                                           
 Bank borrowings                                               (678)          (404)       (1,048)
 Interest expense on tax balances                                  -              -         (149)
 Finance leases                                                (100)          (117)         (237)
 Bond facilities                                                   -              -           (3)
 Unwinding of discounts in provisions                           (10)           (15)          (48)
 Unwinding   of  discounts  in  deferred  and   contingent     (306)           (68)         (156)
 consideration
 Net finance cost on pension scheme                            (161)           (24)             -
                                                            ----------------------------------------
                                                                                           
 Finance costs                                               (1,255)          (628)       (1,641)
                                                            ----------------------------------------
                                                                                           
 Investment interest income                                      159            115           251
 Interest income received on tax refunds                          39              1           153
 Interest income received on recovered debts                       -              -           537
 Interest rate financial instruments                               -              3            14
 Net finance income on pension scheme                              -              -            19
                                                            ----------------------------------------
                                                                                           
 Finance income                                                  198            119           974
                                                            ----------------------------------------
                                                                                           
 Net finance costs                                           (1,057)          (509)         (667)
                                                            ----------------------------------------
                                                            ----------------------------------------


4.   Earnings per share

(a) Number of shares
      
                                                              Six months      Six months             Year
                                                                ended 30        ended 30         ended 31
                                                               September       September            March
                                                                    2008            2007             2008
                                                          ----------------------------------------------
                                                                                          
 Weighted average number of shares in issue                   38,419,741      35,889,530       36,132,838
 Effect of dilution                                                                                   
 Share options                                                   123,405       1,019,323        1,051,573
                                                          ----------------------------------------------
                                                                                                      
 Weighted average shares (diluted)                            38,543,146      36,908,853       37,184,411
                                                          ----------------------------------------------
                                                          ----------------------------------------------
      
(b) Earnings used in the calculation of earnings per share
      
                                                              Six months     Six months           Year
                                                                ended 30       ended 30       ended 31
                                                               September      September          March
                                                                    2008           2007           2008
                                                                   £'000          £'000          £'000
                                                          ----------------------------------------------
                                                                                          
 Earnings used for the calculation of basic earnings  per          5,066          4,833         11,170
 share
                                                                                          
 Add back UK restructuring costs                                     560              -              -
 Less pension settlements and curtailments net of costs                -          (135)          (180)
 Add back amortisation of intangible assets on  business           1,586            781            
 combinations                                                                                    1,802
 Add back tax on adjusted items                                    (514)          (161)          (386)
                                                          ----------------------------------------------
                                                                                          
 Adjusted earnings                                                 6,698          5,318         12,406
                                                          ----------------------------------------------
                                                          ----------------------------------------------

(c) Earnings per share
      
                                                             Six months      Six months           Year
                                                               ended 30        ended 30       ended 31
                                                              September       September          March
                                                                   2008            2007           2008
                                                                  Pence           Pence          Pence
                                                          ----------------------------------------------
                                                                                          
 Basic earnings per share                                         13.18           13.47          30.91
                                                                                          
 Add back UK restructuring costs                                   1.46               -              -
 Less pension settlements and curtailments net of costs               -          (0.38)         (0.50)
 Add back amortisation of intangible assets on business            4.13            2.18           4.99
 combinations
 Add back tax on adjusted items                                  (1.34)          (0.45)         (1.07)
                                                          ----------------------------------------------
                                                                                          
 Adjusted basic earnings per share                                17.43           14.82          34.33
                                                          ----------------------------------------------
                                                          ----------------------------------------------
      
                                                             Six months      Six months           Year
                                                               ended 30        ended 30       ended 31
                                                              September       September          March
                                                                   2008            2007           2008
                                                                  Pence           Pence          Pence
                                                          ----------------------------------------------
                                                                                          
 Diluted earnings per share                                       13.14           13.10          30.04
                                                                                          
 Add back UK restructuring costs                                   1.45               -              -
 Less pension settlements and curtailments net of costs               -          (0.37)         (0.48)
 Add back amortisation of intangible assets on business            4.11            2.12           4.84
 combinations
 Add back tax on adjusted items                                  (1.33)          (0.44)         (1.04)
                                                          ----------------------------------------------
                                                                                          
 Adjusted diluted earnings per share                              17.37           14.41          33.36
                                                          ----------------------------------------------
                                                          ----------------------------------------------


5.   Dividends
      
                                                             Six months     Six months            Year
                                                               ended 30       ended 30        ended 31
                                                              September      September           March
                                                                   2008           2007            2008
                                                                  £'000          £'000           £'000
                                                          ----------------------------------------------
                                                                                                      
 Dividends charged to equity in the period                          789            502             823
                                                          ----------------------------------------------
                                                          ----------------------------------------------
                                                                                                      
 Equity - Ordinary 10p shares                                                                         
    Final dividend paid (pence)                                    2.10           1.40            1.40
    Interim dividend paid (pence)                                     -              -            0.90
      
The  Directors  are  proposing  an interim dividend of 1.35 pence per share  (2007:  0.90  pence).   In
accordance with IFRS the interim dividend has not been recognised in the Financial Statements but  will
be paid on 12 January 2009 to shareholders on the register as at 12 December 2008.


6.   Provisions
      
                                                     Professional             Vacant            Total
                                                        indemnity           property
                                                        insurance
                                                            £'000              £'000            £'000
                                                  -------------------------------------------------------
                                                                                       
 At 31 March 2008                                           2,897                400            3,297
 Charged to the Income Statement                              159                  -              159
 Released to the Income Statement                           (224)                  -            (224)
 Utilised in the period                                     (161)               (30)            (191)
 Amortisation of discount                                       -                 10               10
 Exchange adjustments                                         107                  -              107
                                                  -------------------------------------------------------
                                                                                       
 At 30 September 2008                                       2,778                380            3,158
                                                  -------------------------------------------------------
                                                  -------------------------------------------------------
                                                                                       
 At 30 September 2008                                                                  
 Current liabilities                                        2,778                 52            2,830
 Non-current liabilities                                        -                328              328
                                                  -------------------------------------------------------
                                                                                        
                                                            2,778                380            3,158
                                                  -------------------------------------------------------
                                                  -------------------------------------------------------
                                                                                       
 At 30 September 2007                                                                  
 Current liabilities                                        2,723                323            3,046
 Non-current liabilities                                        -                237              237
                                                  -------------------------------------------------------
                                                                                       
                                                            2,723                560            3,283
                                                  -------------------------------------------------------
                                                  -------------------------------------------------------
                                                                                       
 At 31 March 2008                                                                      
 Current liabilities                                        2,897                 33            2,930
 Non-current liabilities                                        -                367              367
                                                  -------------------------------------------------------
                                                                                       
                                                            2,897                400            3,297
                                                  -------------------------------------------------------
                                                  -------------------------------------------------------
                                                                                       

Professional indemnity insurance
The  provision  reflects  management's estimate of the likely cost  of  claims  including  professional
indemnity  insurance excesses and has been provided in accordance with Group policy.  These  provisions
will  be  carried  forward  until the claims to which they relate are agreed and  amounts  utilised  or
released as appropriate.

Vacant property
The provision represents the estimated net present value of future rentals where properties are vacant.
These  provisions  will be utilised up until such time as the vacant properties are  re-let  (when  the
requirement for a provision will be reassessed), or the lease terminates, which ever occurs earlier.


7.   Shareholders' funds and statement of changes in shareholders' equity
      
                                    Share       Share   Retained   Fair value      Total     Minority         Total
                                  capital     premium   earnings    and other                interest        equity
                                                                     reserves 
                                    £'000       £'000      £'000        £'000      £'000         £'000        £'000     
                             -------------------------------------------------------------------------------------
                                                                                                        
At 31 March 2007                    3,585      21,262      2,437      (1,592)     25,692           242       25,934
New shares issued                       6           -          -            -          6             -            6
Premium on new shares issued            -         149          -            -        149             -          149
Profit for the period                   -           -      4,833            -      4,833             3        4,836
Acquisition of minority                 -           -          -            -          -         (168)        (168)
interests
Dividends paid                          -           -      (502)            -      (502)             -        (502)
Actuarial losses on defined             -           -    (1,268)            -    (1,268)             -      (1,268)
benefit pension schemes
Deferred tax on actuarial               -           -        355            -        355             -          355
losses
Effect of UK tax rate change            -           -      (775)            -      (775)             -        (775)
Share options charges                   -           -         79            -         79             -           79
Deferred tax on share options           -           -         27            -         27             -           27
Incentives granted in the               -           -          -        (300)      (300)             -        (300)
period
IFRS 2 charge for the period            -           -          -           74         74             -           74
Transfer to retained earnings           -           -         16            -         16          (16)            -
Exchange adjustments                    -           -          -           85         85           (8)           77
                             -------------------------------------------------------------------------------------
                                                                                                      
At 30 September 2007                3,591      21,411      5,202      (1,733)     28,471            53       28,524
New shares issued                     179           -          -            -        179             -          179
Premium on new shares issued            -       7,256          -            -      7,256             -        7,256
Profit for the period                   -           -      6,337            -      6,337             -        6,337
Acquisition of minority                 -           -          -            -          -           168          168
interests
Dividends paid                          -           -      (321)            -      (321)             -        (321)
Actuarial gains on defined              -           -      6,620            -      6,620             -        6,620
benefit pension schemes
Deferred tax on actuarial               -           -    (2,037)            -    (2,037)             -      (2,037)
gains
Effect of UK tax rate change            -           -        112            -        112             -          112
Share options charges                   -           -        100            -        100             -          100
Deferred tax on share options           -           -       (74)            -       (74)             -         (74)
Cash flow hedges recognised             -           -          -         (99)       (99)             -         (99)
IFRS 2 charge for the period            -           -          -           93         93             -           93
Minority interest acquired              -           -          -            -          -         (195)        (195)
Exchange adjustments                    -           -          -        3,071      3,071             -        3,071
                             -------------------------------------------------------------------------------------
                                                                                                        
At 31 March 2008                    3,770      28,667     15,939        1,332     49,708            26       49,734
New shares issued                       3           -          -            -          3             -            3
Premium on new shares issued            -          88          -            -         88             -           88
Profit for the period                   -           -      5,066            -      5,066             -        5,066
Dividends paid                          -           -      (789)            -      (789)             -        (789)
Actuarial gains on defined              -           -      2,362            -      2,362             -        2,362
benefit pension schemes
Deferred tax on actuarial               -           -      (661)            -      (661)             -        (661)
gains
Share options charges                   -           -         89            -         89             -           89
Cash flow hedges recognised             -           -          -           44         44             -           44
Incentives granted in the               -           -          -        (298)      (298)             -        (298)
period  
IFRS 2 charge for the period            -           -          -          122        122             -          122
Exchange adjustments                    -           -          -        1,507      1,507             -        1,507
                             -------------------------------------------------------------------------------------
                                                                                                      
At 30 September 2008                3,773      28,755     22,006        2,707     57,241            26       57,267
                             -------------------------------------------------------------------------------------
                             -------------------------------------------------------------------------------------



8.   Notes to the Consolidated Statement of Cash Flows

(a)  Cash flows from operating activities

                                                             Six months          Six months               Year
                                                               ended 30            ended 30           ended 31
                                                              September           September              March
                                                                   2008                2007               2008
                                                                  £'000               £'000              £'000
                                                          ------------------------------------------------------
                                                                                                       
Profit for the financial period                                   5,066               4,836             11,173
Adjustments for:                                                                                   
Taxation                                                            607                 717              1,575
Depreciation                                                      1,477               1,138              2,446
Loss on disposal of property, plant and equipment                    20                   9                  -
Amortisation of software                                            620                 446              1,004
Amortisation of business combinations                             1,586                 781              1,802
Interest receivable                                               (198)               (119)              (974)
Interest payable and similar charges                              1,255                 628              1,641
Fair value loss / (gain) on financial instruments                    77                   -              (476)
Share option costs                                                  236                 186                388
Decrease in provisions                                            (246)               (210)              (306)
Defined benefit pension  scheme charges                           1,923                 959              2,598
Pension scheme curtailments                                           -                   -              (350)
Pension scheme settlements                                            -               (320)                  -
Contributions to defined benefit pension schemes                (2,469)             (3,635)            (6,012)
Changes   in   working   capital   (excluding   effects   of                                       
acquisitions):
Increase in trade and other receivables                        (10,978)             (5,980)           (12,916)
Increase / (decrease) in trade and other payables                 9,497             (5,829)              2,602
                                                          ------------------------------------------------------
                                                                                                   
Cash generated from / (used in) operations                        8,473             (6,393)              4,195
                                                          ------------------------------------------------------
                                                          ------------------------------------------------------
     

(b)  Reconciliation of movement in net debt
     
                                At 30               At 1      Cash     Non cash    Exchange             At 30
                            September              April      flow     movement    movement         September
                                 2007               2008                                                 2008
                                £'000              £'000     £'000        £'000       £'000             £'000
                            ------------------------------------------------------------------------------------
                                                                                                                 
Cash at bank                    9,836             14,823     1,854            -         553            17,230
                            ------------------------------------------------------------------------------------
                                                                                                   
Debt due within 1 year        (4,739)            (1,105)       682        (642)         (2)           (1,067)
Debt due after 1 year         (7,434)           (21,741)   (1,108)          760           3          (22,086)
Finance leases due within 1   (1,657)            (1,591)       641        (333)        (37)           (1,320)
year
Finance leases due after 1    (1,600)            (1,511)        45           28          29           (1,409)
year
                            ------------------------------------------------------------------------------------
                                                                                                   
                             (15,430)           (25,948)       260        (187)         (7)          (25,882)
                            ------------------------------------------------------------------------------------
                                                                                                   
                              (5,594)           (11,125)     2,114        (187)         546           (8,652)
                            ------------------------------------------------------------------------------------
                            ------------------------------------------------------------------------------------
      


9.   Property, plant and equipment and intangible assets
      
      
                                                            Property, plant and             Intangible
                                                                      equipment                 assets
                                                                          £'000                  £'000
                                                               ----------------------------------------------------
                                                                                             
Net book value                                                                                                 
At 31 March 2007                                                          9,443                 18,047
Exchange adjustments                                                        268                    194
Additions - Separately acquired                                           1,576                    610
Additions - On business combinations                                         89                  3,330
Disposals                                                                  (18)                  (104)
Depreciation and amortisation                                           (1,138)                (1,227)
                                                               ----------------------------------------------------
                                                                                             
At 30 September 2007                                                     10,220                 20,850
Exchange adjustments                                                        458                    388
Additions - Separately acquired                                           1,863                  1,618
Additions - On business combinations                                        793                 22,136
Disposals                                                                  (22)                    104
Revaluations                                                                  -                  1,073
Depreciation and amortisation                                           (1,308)                (1,579)
Transfers                                                                 (862)                    862
                                                               ----------------------------------------------------
                                                                                             
At 31 March 2008                                                         11,142                 45,452
Exchange adjustments                                                       (32)                  1,585
Additions - Separately acquired                                           3,396                    872
Disposals                                                                 (204)                    (6)
Revaluations                                                                  -                (2,710)
Depreciation and amortisation                                           (1,477)                (2,206)
                                                               ----------------------------------------------------
                                                                                             
At 30 September 2008                                                     12,825                 42,987
                                                                                             

      
10.  Post employment benefits
      
Employees  of  the Group participate in a number of pension schemes both in the UK and  overseas.   The
principal  scheme in the UK is the Acer Group Pension Scheme (AGPS) which is a defined benefit  scheme.
The amounts included in the balance sheet for post employment benefits are as follows:
      
                                                                 As at 30            As at 30      As at 31
                                                                September           September         March
                                                                     2008                2007          2008
                                                                    £'000               £'000         £'000
                                                               ----------------------------------------------------
                                                                                                                 
AGPS                                                               19,269              30,544        22,481
Unfunded Annuitants scheme                                            653                 684           678
                                                               ----------------------------------------------------
                                                                                                    
Total AGPS and Annuitants scheme                                   19,922              31,228        23,159
                                                                                                    
Overseas schemes                                                    5,155               2,694         4,204
                                                               ----------------------------------------------------
                                                                                                    
Post employment benefits                                           25,077              33,922        27,363
                                                               ----------------------------------------------------
                                                               ----------------------------------------------------
      
                                                                   As at 30          As at 30          As at 31
                                                                  September         September             March
                                                                       2008              2007              2008
AGPS and Annuitants scheme:                                               %                 %                 %
                                                               ----------------------------------------------------
                                                                                                                
Rate of increase in salaries                                           3.70              3.40              3.60
Rate of increase to pensions in payment:                                                                        
 - Index linked pensions with max 3% per annum increases               3.00              3.00              3.00
 - Other index linked pensions                                         3.70              3.40              3.60
Discount rate                                                          6.50              5.80              6.20
Inflation assumptions                                                  3.70              3.40              3.60
Expected rates of return on scheme assets:                                                                      
Equities                                                               8.40              8.50              8.30
Bonds                                                                  5.60              5.70              5.50
Other                                                                  5.00              5.75              5.25
                                                                                                                
Longevity at age 65 for current pensioners                                                                      
- Men                                                            21.9 years        21.4 years        21.9 years
- Women                                                          23.8 years        23.9 years        23.8 years
Longevity at age 65 for future pensioners                                                                       
- Men                                                            23.8 years        22.9 years        23.8 years
- Women                                                          25.7 years        25.4 years        25.7 years
                                                                                                                
The amounts included in the balance sheet for the AGPS and            £'000             £'000             £'000
Annuitants scheme are as follows:
                                                               ----------------------------------------------------
                                                                                                               
At 31 March 2008                                                   (23,159)          (33,320)          (33,320)
Current service costs                                                 (740)             (800)           (1,519)
Notional interest on pension liability                                (161)              (24)                15
Contributions by employers                                            1,767             3,864             5,707
Actuarial gains / (losses) due to:                                                                  
- Changes in mortality assumptions                                        -          (10,425)          (13,105)
- Changes in other actuarial assumptions                              7,526             7,687            15,265
- Return on assets                                                  (5,155)             1,470             3,448
Settlements                                                               -               320               350
                                                               ----------------------------------------------------
                                                                                                    
Deficit in AGPS and Annuitants scheme                              (19,922)          (31,228)          (23,159)
                                                                                                    
Related deferred tax asset                                            4,217             6,744             5,123
                                                               ----------------------------------------------------
                                                                                                    
Net pension deficit                                                (15,705)          (24,484)          (18,036)
                                                               ----------------------------------------------------
      

11.  Contingent liabilities
      
The  Directors estimate that at 30 September 2008 contingent liabilities, primarily in respect  of  the
insurance  excesses relating to potential professional indemnity claims, with regard  to  contracts  of
Group  companies  and  joint ventures, in excess of amounts provided for in the  Financial  Statements,
amounted  to £6.0m (2007: £5.8m).  The Directors do not consider any provision is necessary in  respect
of  these amounts as they consider the likelihood of loss to be remote based on legal and other  advice
received.

Hyder  Consulting  PLC  and  various  Group  companies have entered  into  performance  guarantees  and
performance  bonds  supporting  project requirements and certain other  bonds  and  guarantees  in  the
ordinary course of business.  The Group's liabilities under performance guarantees are only limited  to
the extent of the underlying contracts.  The potential liability of subsidiary undertakings under bonds
and  guarantees as at 30 September 2008 totalled £15.4m (2007: £12.3m).  The Directors do not  consider
any provision is necessary in respect of guarantees and bonds.
      

12.  Cautionary statement
      
This  Half  Year Report has been prepared solely for the Company's members, as a body.  The report  may
contain  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 in any forward-looking  statement.  The
Company  assumes  no obligation to update or revise any forward-looking statement, resulting  from  new
information,  future events or otherwise.  Nothing in this Half Year Report should be  construed  as  a
profit forecast.


13.  Further information
      
An  electronic version of the Half Year Report and 31 March 2008 financial statements can be viewed  on
the corporate web site: www.hyderconsulting.com.
      

Statement of Directors' Responsibilities

The  Directors  confirm that to the best of their knowledge this condensed set of financial  statements
has  been  prepared in accordance with IAS 34 as adopted by the European Union, and  that  the  Interim
Management Report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8.

The  Directors  of  Hyder  Consulting PLC are listed in the Hyder  Consulting  PLC  Annual  Report  and
Financial Statements 2008.  There have been no changes of directors since the Annual Report.  A list of
current directors is maintained on the Hyder Consulting website www.hyderconsulting,com.


Independent Review Report to Hyder Consulting PLC

Introduction
We have been engaged by the company to review the condensed set of financial statements in the half-
yearly financial report for the six months ended 30 September 2008, which comprises the consolidated
income statement, consolidated balance sheet, the consolidated statement of recognised income and
expense, consolidated statement of cash flows and related notes. We have read the other information
contained in the half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed set of financial
statements.

Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the directors. The
directors are responsible for preparing the half-yearly financial report in accordance with the
Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority.

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with
IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-
yearly financial report has been prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting", as adopted by the European Union.

Our responsibility
Our responsibility is to express to the company a conclusion on the condensed set of financial
statements in the half-yearly financial report based on our review. This report, including the
conclusion, has been prepared for and only for the company for the purpose of the Disclosure and
Transparency Rules of the Financial Services Authority and for no other purpose. We do not, in
producing this report, accept or assume responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come save where expressly agreed by our prior
consent in writing.

Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and
Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the
Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim
financial information consists of making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A review is substantially less
in scope than an audit conducted in accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set
of financial statements in the half-yearly financial report for the six months ended 30 September 2008
is not prepared, in all material respects, in accordance with International Accounting Standard 34 as
adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.



PricewaterhouseCoopers LLP
Chartered Accountants
Bristol
28 November 2008

Contact Information

  • Hyder Consulting PLC