Hyder profits up 35% after job cuts

Hyder has posted a 35% increase in pre-tax profits on falling global revenue, and has seen a sharp dip in business in the Middle East offset by growing work in Asia Pacific.

In preliminary results released this morning the consultant posted pre-tax profits of £18.2m on revenue of £290m in the year to 31 March, down from £309m in 2010.

Yet the consultant was forced to slash 501 jobs over the course of the year, and employed 3,859 people on average over the 12 months.

In the UK, revenue declined to £87.2m from £95.9m last year, and Hyder warned that the transport sector was “challenging”.

Work plummeted in the Middle East, where revenue was down 30% to £65.5m.

This was down to “both a scaling back of operations in Dubai, following the completion of contracts there, and delays in contract awards in the region,” the firm said.

Although did not mention stricken Dubai developer Nakheel, which is thought to have owed the firm around £1m after the Dubai crash in 2008, Hyder did it was having some difficulty in recovering money in the region.

“We have also experienced delayed contract payments, the settlement of aged debts through structured payment plans, and some isolated delays in the recovery of work in progress,” it said.

Hyder said that it had no projects in unrest-hit countries such as Libya, Yemen, Syria and Egypt, and had only suffered  “minimal disruption” in its 100 strong Bahrain office due to protests.

Asia Pacific revenues were up 20% to £114.0m, with the majority of work coming from the Australian market, where revenue increased 6.7%.