Hyder Consulting has enjoyed a surge in profitability

Hyder Consulting has enjoyed a surge in profitability, with its latest interim pre-tax profit figure trebling to £8.1m, thanks largely to an exceptional gain of £4.3m as a result of efforts to transform its pension fund problems.

A pensionable salary freeze of up to five years has been implemented for active members, resulting in an immediate £4m drop in the deficit. In addition, further acceptances from deferred members on the offer to transfer out of the scheme generated a further £800,000 gain.

The group upped its pension contributions to £3.9m in the period, including an initial £2m special contribution that is being paid for through a 15-year unsecured loan.

Hyder’s financial results, covering the six months to 30 September, show turnover higher at £97m (£81m). The pre-tax profit in the first half of last year ran out at a much more modest £2.6m.

“We are very pleased with our results,” said Sir Alan Thomas, chairman. “Markets are strong, our margins are improving and we are successfully integrating our acquisitions.”

[Contract Journal, 29 November 2006, p 3]