Hyder Consulting Share Discussion Threads

[c lau] 11/8/2010 23:18

The Naked Trader suggests this can be a take over target at 500p!!

[grigor] 10/8/2010 21:59

Giles Hargreaves is a consistently good performer.

[rivaldo] 10/8/2010 12:45

New article - HYC is the largest holding in Giles Hargreaves' (star fund manager) Marlborough Special Situations Fund:



"In addition around 65% of the portfolio has exposure to overseas earnings, including in higher growth, yet high risk, emerging markets. A good example is the fund's largest holding, Hyder Consulting, an engineering consultancy with operations worldwide. Over the past 150 years they have worked on some of the world's most iconic landmarks such as Tower Bridge in London and the Burj Khalifa in Dubai, the world's tallest building."

[rivaldo] 09/8/2010 12:22

Yet another contract win today...this time a £25m project in Manchester:



"Network Rail appoints Hyder for Victoria station revamp
9 Aug 2010, 10:55

Network Rail has awarded a contract to Hyder Consulting to cover the first three stages of a process to transform Manchester's Victoria railway station.

Hyder has subsequently appointed BDP as architects to deliver the project, aimed to be complete by December 2014.

Jo Kaye, Network Rail's route director, said: "Manchester relies on rail and the go-ahead for this vital project underlines Network Rail's commitment to improving Manchester Victoria. Awarding this contract is the confirmation that everyone wants - funds are secure and the work will happen.

"Over the next four years, the station will undergo a complete makeover that will make it a key point of entry to a part of the city that has undergone a renaissance in recent years."

The project is being jointly funded by Network Rail, which is contributing £16m, Manchester City Council, £5m, and Greater Manchester Integrated Transport Authority, £4m....."

[greenroom78] 06/8/2010 12:33

Certainly a lot of M&A activity about.

Decent bit of volume again today.

[wcjan26] 06/8/2010 12:01

Headline : Stantec could grow via organic and acquisitive means

Main body : Stantec (NYSE: STN), the Edmonton, Alberta-based engineering design firm, could grow organically and acquisitively during the second half of 2010, according to a report appearing in the National Post on 6 August. Commenting on his company's 2Q10 financial results, Stantec CEO Bob Gomes said in a report syndicated from Postmedia News that his company still sees opportunities to grow both internally and courtesy of M&A.

The company, which last month announced the acquisition of Naples, Florida-based WilsonMiller for an undisclosed sum, has a market cap of USD 1.12bn.

[wcjan26] 05/8/2010 16:06

wonder if DTZ is being looked at too?

[greenroom78] 05/8/2010 14:20

Interesting wcjan - Thanks.

I do a lot of work with the Project Management and QS arms of Davis Langdon, will be interesting to see whether this changes at all.

[wcjan26] 05/8/2010 14:07

yet another deal in the sector:



higher multiples than the atkins deal earlier this week

[rivaldo] 04/8/2010 15:33

New contract win dated 2nd August:



"Sahara Mall extension

Hyder's architecture team has been appointed by Bukhatir Properties to provide tenancy fit out and lease outline drawing (LOD) services for the Sahara Mall east extension. The east extension is a new 3 storey mall comprising about 150 tenancies. The new mall will form the base of a larger tower development, and will link with the existing mall along its east side. The scope of services includes full LOD package and tenant design manual, including tenant reviews and inspections.

The project was secured by submitting a winning proposal in terms of price and highlighting Hyder's technical expertise. The client was impressed by the team's portfolio of mall interiors projects, particularly the recently completed Mirdif City Centre.

This is the first time that the architecture team has worked with Bukhatir Properties. The company has very aggressive time scales for the initial project deadlines and Hyder's performance as a consultant will be measured against these.

Winnfred van den Akker, Bid Manager, commented "Bukhatir Properties was impressed with Hyder's extensive retail experience. This commission provides us with an opportunity to demonstrate our level of service. We are establishing a rapport with the client and our ongoing involvement as well as a strong performance could secure the other elements of work. These include design work on the refurbishment of the existing mall finishes and further supervision on the east extension." "

[greenroom78] 03/8/2010 17:05

After a week or so of consolidation I see we have a bit of volume returning again today.

[cockneyrebel] 29/7/2010 20:29

I meant what the eventual take out price was for SWG and what someone was prepared to pay forthem Indomie.

Perhaps there isn't a bidder about for HYC. But from the price SWG got took out on you can see what an actual buyer thought they were worth compared to what the market was valuing them at.

If I see a Russel Flint painting in a shop window at £2K and then visit an auction and see one sell for £10k then...... well, I think you see where I'm coming from :-)

CR

[indomie] 29/7/2010 20:20

that pe ratio is based on £2.90 per share for swg - unless you believe a bidding war will break out for HYC, £2.10 was the price URS originally wanted to pay (and got a board recommendation) for SWG so this would surely be a better valuation point for HYC? That would make a p/e of 11.47 for SWG on my calcs....which wouldnt be £6.45! that's what indo means.

[v11slr] 28/7/2010 23:28

Market cap is a measure of size not value. Look at the p/e, SWG is currently on 16.72 and HYC on 8.96, for HYC to be on the same p/e as SWG its price would have to rise to approx. £6.45. That's what CR means.

[indomie] 28/7/2010 22:47

CR

Can you elaborate what you mean by this?

'The valuation here compared to SWG is stark'

The 1st agreed offer for SWG from URS was for £161m, which is not too far off current valuations. If you look at historic share prices (clearly no guide to future performance/value) but SWG was valued at a higher mkt cap than HYC for most of the period since SWG was floated.

[daddy2010] 28/7/2010 20:13

INDOMIE,

I know for a fact that CH2M have spoken to Brewin dolphin (Hyders broker) but not sure what it was regarding or if it was before or after the SWG bid (Brewins also brokers to SWG). So at least HYC are on the radar.

Top up again late in the day following Brewins current rec - 'buy on weakness'. Recent results were ahead og their expectations and they expect they may be updating their forecasts again in the future.

D

[cockneyrebel] 28/7/2010 13:35

AGM Friday - anyone going?

I would think a lot of larger shareholders will come away from that wanting to buy more. The valuation here compared to SWG is stark.

CR

[indomie] 27/7/2010 15:05

wcjan26,

Interesting read but disagree with the argument that overseas assets are key - if you read the two offer documents posted online from URS and CH2M Hill it is clear that both these firms wanted to acquire SWG for its significant UK market position, not smaller mkt shares spread across the world. If they'd wanted HYC then surely either would have bid for them instead?

Alot of money from SWG seems to have been reinvested in HYC which to me has made the stock fairly valued for now IMO - yes there is the chance of a takeover, but at current levels the premium wont be anything like SWG, which makes the likes of MCHL more attractive IMO as they are still almost 2/3rds down on share price at start of this year after VT takeover offer for them fell through.

[cockneyrebel] 26/7/2010 19:08

chart still looks a tad ugly on CHW for me davidwilkin - perhaps when it goes positive I might dabble but not before.

CR

[wcjan26] 26/7/2010 15:36

WSP Group [WSH LN], a UK-listed engineering consultancy, today played down the prospect of a "Scott Wilson-type" takeover of the company, but acknowledged that the sector had become attractive to overseas buyers.

"We're not worried about a bid, but we're not excluding the possibility either," WSP's chief executive Christopher Cole told this news service in an interview.

The recent two-way bid battle between URS and CH2M Hill, two US construction companies, for UK-listed consultancy Scott Wilson [SWG LN] has highlighted the attractions of this support services sub-sector and some analysts have tipped WSP as the next possible target because of its high level of overseas earnings.

URS eventually sealed the Scott Wilson deal with a bid of 290p per share – a massive 230% premium to where the shares were trading before the bid and nearly 16.0x last year's earnings. This is thought to be one of the highest takeover premiums paid for a UK company over the past ten years. The bid values Scott Wilson at GBP 223m. The voting record time for the Scott Wilson deal is 6:00 pm on 28 July ahead of the 30 July court meeting.

"At these sort of premiums, our shareholders might like us to be vulnerable to a takeover," said WSP's Cole. "But, unlike Scott Wilson, we don't have a 'for sale' sign over the company and being twice the size of Scott Wilson any potential bidder would have to have deeper pockets."

With its shares trading at 324.5 pence on Monday in London, WSP is currently capitalised at about GBP 207m. Following the approaches for Scott Wilson, its shares have outperformed the market and it currently trades on a current year price/earnings ratio of about 10.0x.

"Multiples have been moving up across the whole industry, including the private sector. This makes it much harder for us to pursue our own acquisitions strategy, especially with some cash-rich overseas buyers still actively looking around," Cole continued.

While CH2M Hill was forced to walk away from the Scott Wilson deal, analysts believe it still remains a potential buyer of UK assets. Other US names linked to the sector include Aecom and Jacobs, while European firms Poyry, the Finnish-based company, and Dutch groups Arcardis and Grontmij, are all highly acquisitive in this space.

"Overseas players are keen to diversify and looking for 'cheap' acquisition opportunities that will expand their international operations with little downside risk. The more favourable exchange rate – especially on the dollar/sterling rate - is also making UK companies more attractive to overseas buyers," one analyst said. WSP derives around two-thirds of its earnings overseas.

On the subject of acquisitions, Cole said WSP was still keen to make complementary bolt-on deals between GBP 10m to GBP 20m in size. "We would like to increase our exposure to the Benelux countries, while infrastructure assets in the US and Australia are two other areas we are looking at. The renewable energy sector is another area where we could leverage our existing expertise."

Net debt at end-June 2010 stood at about GBP 70m, while the group has a GBP 150m banking facility in place until 2013. "We have plenty of headroom on the balance sheet for small, infill deals. A more sizeable transaction may require a capital raise and this is a possible option for us," said Cole.

He pointed out that a beneficial by-product of the Scott Wilson takeover had been to improve the company's share price and put a peg under WSP's stock market valuation. "This would make it easier for us to raise fresh capital if needed," Cole continued. The group is planning to hold an Investor Day in early November when the board is expected to update shareholders on its future strategy.

Meanwhile, half-time profits from WSP illustrated the resilience of the group's overseas earnings with a strong performance from the North European operations helping to mitigate tougher conditions in the UK and US. Overall, group revenues were down by 9% – in constant currency terms – to GBP 354m, while operating profits were steady at GBP 18.3m.

[grigor] 22/7/2010 22:31

up, up and away

[qs9] 22/7/2010 22:18

CHW does look very cheap, IMO, results should be end of August so maybe a tick up will begin ahead of that.

[davidwilkin] 22/7/2010 20:31

sorry o/t. talking about cheap stocks, has anyone had a look at Chime (CHW), forward pe of 7. I know CR was or is invested in them.

[cockneyrebel] 22/7/2010 19:56

Nice day - yep, spoton Greenroom.

Not expecting a t/s at the AGM but reckon there will be buying off that in a weeks time - will be an upbeat affair imo.

[jong] 22/7/2010 19:54

Mouchel (MCHL) were up 18% today (very similar business, but a bit more UK biased)

Must be bid speculation in the sector I reckon