Hyder shares slump following profit warning

Shares in engineering consultant Hyder plunged this morning after it warned profits this year would fall short of City hopes.

The company, which last year bought East Kilbride firm Power Systems PCS, said it has been hit by delays in new contract awards in Australia and project delays in the Middle East.

As a result, the group said full-year results will be “materially” below market expectations, sending its shares down more than 26 per cent to 471p in early trading.

Hyder said the pipeline for infrastructure work in Australia was strong, but contracts awards have been slower following the change in government, while earnings have also been hit by the weaker dollar.

The firm has won a number of fresh contracts in the Middle East, but delays to projects means profitability there will fall short of the group’s forecasts.

Trading in the UK has been better than expected, helped by a number of deals with Network Rail, and Hyder said: “Our strong order book and positioning leave the group well placed to take advantage of future growth opportunities over the years ahead.”