Hyder follows pre-tax profits jump with Australian expansion plan

Listed project management group Hyder has expanded its operations in Australia by buying Queensland-based firm Weathered Howe for £3m.

The acquisition is the sixth the firm has made in Australia since 2002 to bolster Hyder’s project management, infrastructure and building engineering services.

The firm has spent a total of £6m on the acquisitions and has a total of 550 staff in offices in Melbourne, Sydney, Brisbane and the Gold Coast.

The buy will increase the firm’s staff in Queensland, which has one of the highest growth rates in Australia, to 100. The Australian firm, which has a turnover of £3.5m, will be renamed Hyder Weathered Howe as of 1 July. It is already working on schemes such as the Brisbane Treasury Casino and the Gold Coast convention and exhibition centre.

The deal came as Hyder announced a 86% jump in pre-tax profits, despite reduced margins on water work in the UK.

Increased levels of activity and improved margins in Australia and the Middle East helped offset a reduction of work in the UK water sector ahead of the regulator’s five-year price review.

The strength of our markets gives us a solid base for delivering further margin improvements

Tim Wade, Hyder

Profit before tax increased to £4.4m for the year ending 31 March 2005, while turnover grew 11% to £136m. The order book at the year-end was £185m.

Hyder said it had a strong year in transport. Significant projects included the growth of the Highways Agency M25 widening contract and the awarding of the Mottram-Tintwistle Bypass contract on the edge of the Peak District National Park.

Meanwhile, government regeneration policies led to an increase in specialist planning work.

Chief executive Tim Wade said: “The strength of our markets and our strategy for increasing our share of higher-value advisory work give us a base for delivering further margin improvements.”