Risk Warning

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Prime Markets in the Press - Sage (SGE)

05/05/2011

One to watch: Hyder Consulting

Hyder Consulting is a multi-national engineering and design consultancy operating in Asia, Australia, the Middle East, Germany and the UK. The company has designed some of the world's most-famous landmarks, including London's Tower Bridge, Sydney Harbour Bridge and the Taiwan High Speed Railway.
In a recent trading update, Hyder confirmed it was trading in line with board expectations. More than 70 per cent of the company's revenue and 80 per cent of its operating profits comes from overseas. Australia has performed well, while in the Middle East the group has been winning business in the UAE, Qatar, Bahrain and Saudi Arabia. Despite challenging markets, UK trading experiences have also improved.

The company has a strong balance sheet with net cash of about £9.6 million, which leaves it well-placed to make further acquisitions when opportunities occur. The yield is not especially generous given that the dividend would be covered around four times on forecast earnings but the share's recent weakness brought on, perhaps, by the flooding in Australia and the tensions in the Middle East, could be an opportunity.

Hyder Consulting
365p +4p
Scotsman says BUY

• The value of your investment could fall and you may get back less than you invested. Take professional advice if you have any doubt about the suitability of this company for your portfolio.

BROKER SNAPS

Standard Chartered
1,604p -61.5p
Broker says ACCUMULATE

Following first quarter results from Far East-facing bank Standard Chartered, Charles Stanley has said it is prepared to "give management the benefit of the doubt at the moment" when it comes to keeping staff hiring costs down in Asia and has maintained its "accumulate" recommendation.

Sage
286.4p -0.3p
Broker says BUY

Interim results from software firm Sage have prompted Prime Markets to stick with its "buy" rating. Noting that the US business had returned to growth, head of dealing Richard Curr said: "Unlike a lot of IT sector plays, Sage is a mature constituent, invariably delivering a steady rather than spectacular performance."

The Scotsman

Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.