Engineer consultant Hyder Consulting this week revealed an 81% hike in pre-tax profit, despite reduced margins on water work in the UK.

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

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

Significant projects included the M25 widening contract for the Highways Agency and the awarding of the Mottram-Tintwistle Bypass contract on the edge of the Peak District National Park.

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

The company also announced the acquisition of Australian engineering consultancy Weathered Howe for about £2m.