fantastic order book,profits up 250+% , div increased , bullish forward statement and .......................................



B R E A K I N G O U T



B A R G A I N S T O C K

Questor share tip: Buy Hyder Consulting as its reveals record order book
Hyder Consulting has secured 65pc of this year's revenue. Questor says buy.
Garry White By Garry White
6:00AM BST 14 Jun 2013
Hyder Consulting
440p+14
Questor says BUY

Hyder Consulting

Shares in Hyder Consulting were weak in the first half 2013, a trait common across the engineering sector. However, this week’s full-year results revealed a record order book, strong cashflow and management raised its dividend a third. Now looks like a good entry point.

Hyder has provided engineering and design services for famous buildings including Sydney Harbour Bridge, Tower Bridge in London and the world’s tallest, Burj Khalifa, in Dubai. It has a market value of around £150m.

The business has a global presence, but it operates three “design excellence” centres. One in the Philippines undertakes the design of highways and property projects, with its Indian centre focusing on utility and rail projects. A third in Bulgaria opened in 2011 to support its German business.

These centres employ more than 10pc of group headcount. The advantage of carrying out global business from these regions instead of the UK, is their highly educated and motivated workforce and overall costs are much lower.


The group’s businesses are plugged into some major bullish investment themes. These are urbanisation, increased investment in mass transit schemes worldwide, low carbon design to tackle climate change and water and power scarcity.

In the 12 months to March, revenues rose by 8pc to £298.1m and pre-tax profit jumped 9pc to £18.8m. The group’s net cash balance soared to £24.3m from £15.6m, which is a useful war chest for strategic acquisitions.

The group’s order book increased by 14pc to a record £413.2m, which means about 65pc of the current year’s forecast revenue is already secured.

This has created a degree of confidence in the future great enough for the group to increase its dividend by much more than the market expected. The final payment of 8p, which will be made on August 9, brings the total for the year to 12p, an increase of 33pc.

Analysts had pencilled in a dividend of 11.99p next year, which is below the full-year announced this week. This means that the prospective yield next year of around 2.8pc is likely to be understated as analysts will increase their forecast this week.

The company’s business in Australia has low exposure to the resources sector, which makes up just 5pc of its revenues. Mining giants in the country are reining in expenditure after years of runaway investment.

In its Middle Eastern business, operating profits rose 82pc over the year to £7.1m and the company has won some major contracts recently, including a £70m contract for the design and supervision for a section of Doha Expressway. It has increased exposure to the infrastructure market in Saudi Arabia, which should help make up for a slowdown in Dubai and the wider United Arab Emirates.

The shares are trading on a 2014 earnings multiple of 9.8, falling to 9.3. This does not seem overstretched for a company with such a solid underlying performance. Questor thinks the recent fall is a buying opportunity.

Consensus recommendation

As of Jun 10, 2013, the consensus forecast amongst 9 polled investment analysts covering Hyder Consulting PLC advises investors to purchase equity in the company. This has been the consensus forecast since the sentiment of investment analysts improved on Jun 10, 2013. The previous consensus forecast advised that Hyder Consulting PLC would outperform the market.


Summary


On Friday, Hyder Consulting PLC (HYC:LSE) closed at 469.00, 4.29 % below its 52-week high of 490.00, set on Apr 15, 2013.
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12 Jun Investec 535.00 Buy
12 Jun Liberum Capital 520.00 Buy

17 Jun Liberum Capital 553.00 Buy

16:50 24/06/2013
Director Deals - Hyder Consulting PLC (HYC)

Russell Down, Financial Director, sold post-exercise 60,801 shares in the company on the 21st June 2013 at a price of 440.00p. The Director now holds 56,703 shares. Story provided by StockMarketWire.com Director deals data provided by www.directorsholdings.com

16:50 24/06/2013
Director Deals - Hyder Consulting PLC (HYC)

Russell Down, Financial Director, sold post-exercise 94,115 shares in the company on the 21st June 2013 at a price of 0.00p. The Director now holds 117,505 shares. Story provided by StockMarketWire.com Director deals data provided by www.directorsholdings.com

16:50 24/06/2013
Director Deals - Hyder Consulting PLC (HYC)

Ivor Catto, Chief Executive Officer, sold 35,250 shares in the company on the 21st June 2013 at a price of 440.00p. The Director now holds 170,647 shares. Story provided by StockMarketWire.com Director deals data provided by www.directorsholdings.com

31 Jul Numis 550.00 Buy
31 Jul Investec 535.00 Buy

Hyder Consulting: Panmure Gordon takes target price from 488p to 550p keeping a buy recommendation

A buy in this weeks IC .

Dreamcatcher 2.20 Newmarket.

Did it fall. lol

Or stayed in the stalls munching grass. lol

8th out of 14.. next time..

lol

Questor share tip: Focus on Hyder long-term and benefit from discount to peers
TelegraphBy John Ficenec | Telegraph – Sat, Oct 5, 2013 21:00 BST.

The engineering consultant is benefitting from a construction boom in the Middle East, says Questor.

Hyder Consulting (LSE: HYC.L - news) 487p Questor says BUY

Hyder Consulting, the engineering consultant, is offering rapid dividend growth to investors. So the shares trading on a discount to sector peers are well worth a second look.

Hyder has more than doubled its dividend over the past four years. That has seen the payout to shareholders soar from 4.5p in 2009, to 12p today.

There is still plenty of room for that dividend to increase further. Analysts expect it to rise by 10pc both this year and next, reaching 14.5p by 2015.

This looks very reasonable as well. The dividend was covered 3.5 times by earnings and cash flow in the year ended March 2013.

Hyder has achieved this performance by focusing on high growth overseas markets. More than two-thirds of Hyder's revenue comes from engineering work in Asia Pacific and Middle East regions.

The Middle East is going through something of an infrastructure boom as it uses petrodollars to build hospitals, railways and motorways.

Hyder is working on the "M25 of the Middle East", referring to the Qatari's £3bn Doha expressway project, on which Hyder Consulting recently won a £70m design contract.

Middle East growth is offsetting a difficult European market. German elections have delayed contract decisions, and it is a similar picture in Australia, with some bidding referral around the recent election. However these are short-term, one-off impacts and, with the political backdrop now more secure, long-term construction decisions can be made.

In the most recent trading update, Hyder said currency weakness in the Australian dollar would hurt full-year forecastsand brokers trimmed backprofit expectations.

Investors should focus on the long-term story here, which is very much intact. The shares trading on a PE ratio of 11.8 times forecast 2014 earnings, falling to 10.7 times next year, are therefore on an unfair discount to sector peer WS Atkins (LSE: ATK.L - news) on a PE ratio of 13 times. Buy.

On Friday, Hyder Consulting PLC (HYC:LSE) closed at 534.00, 0.19 % below its 52-week high of 535.00, set on Oct 11, 2013

Sold. In at 460P out at 534p.