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Hyder issues profit warning after project delays

Engineering firm Hyder Consulting has issued a profit warning after delayed starts to contracts overseas.

In an interim management statement for the period from 1 October 2013 to 10 February 2014, the firm said results for the financial year were “expected to be materially below current market expectations due to delays in new contract awards in Australia following the election, and project delays in the Middle East”.

In November, Hyder Consulting announced its UK half-year operating profits grew 164 per cent in the six months to 30 September 2013 to £3m.

Delays in infrastructure projects in Australia, coupled with the weakening of the Australian dollar against sterling by 25 per cent over the past year, were the primary factors affecting profits, Hyder announced.

But the company added that its UK results were still “encouraging” and better than in previous years. Hyder said its UK rail business had performed well and should make more than £25m in fees from Network Rail frameworks in the next five years.

It anticipated a small loss in Germany in the second half of this financial year and added that it would have to write off about £6m in goodwill on acquisitions made before 2008.

The group said it had a “strong” order book and said there were still strong opportunities in Australia and the Middle East, despite delayed starts to contracts.

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