LONDON (Alliance News) - Recruitment business Hydrogen Group PLC Tuesday said it expects to report a 2013 pretax profit of about GBP2.3 million, down from GBP3.2 million in 2012, despite trading in line with expectations in the last two months of the year.
Last month, the firm said it expected its pretax profit for the full year to be below market expectations, as it invested in new staff and the recent strength of sterling weighed on its results.
Tuesday, Hydrogen said it expected to report an increase of about 2% in net fee income for 2013.
During November and December, the group saw further strong growth in the Technical & Scientific sector, which now represents 45% of its NFI, it said. However, conditions in the Professional Support Services recruitment markets remained challenging.
The firm said it had continued with its strategy of investing for growth in the medium term. It opened offices in Houston, US and Stavanage, Norway in the first half of 2013 to "take advantage of strength in the global oil and gas markets."
The group has also continued to add heads during the second half of the year and, as a result, year-end headcount was 386, a 10% increase since the half year.
A consequence of this investment is that administration costs for 2013 are expected to increase by around 5% on 2012.
Net debt is expected to be around GBP4.0 million, up from GBP2.8 million in 2012, as it spent GBP1.8 million to fit out its new London headquarters to accommodate the extra staff.
"The group will enjoy a GBP1.4 million cash benefit of a further 21 months' rent free on its new property lease in 2014 and 2015," it added.
The group intends to report full-year results on March 17, 2014.
The stock was trading at 109.03 pence Tuesday morning, down 0.47 pence or 0.4%.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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