Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

High-point rides Far East storm

SHARES in High-Point Rendel rallied last week after the consultancy group sought to dispel City fears that recent financial shocks in the Far East would knock its recovery off course.

Chief executive Ian Reeves said that the group's strategy to return to profit remained 'on plan' despite currency devaluations in the Far East. The group relies on the region for around 40 per cent of its £20 million turnover.

The devaluation of the Malay-sian ringgit and the Indonesian rupiah did prompt High-Point Rendel to make a £300,000 provision to cover exchange losses on balance sheet items - chiefly work in capital - when it unveiled results last week.

The provision meant High-Point's losses were slightly higher than forecast at £13.7 million

for the 14 months to July, although the firm said current year trading was ahead of expectations.

Chief executive Ian Reeves said: 'We could have done without this very serious situation in Asia but we are managing it.'

Shares in High-Point, which had slipped on Far Eastern fears, rose 5p to 53p last week.

But around half of the firm's workload in the region is in Hong Kong where the currency has so far remained tied to the US dollar.

The largest shareholder in High-Point, Mr Reeves returned to the group's board last summer after it underwent a radical financial and management change.

The new strategy involved merging the High-Point management consultancy and RPT consulting engineering businesses into an integrated management and engineering services business.

After selling its US business and cutting property costs the group is now debt-free and is expected to make a profit in the current year.