Hydrogen Group tumbles as interim loss widens, dividend scrapped

(ShareCast News) - Hydrogen Group tumbled after posting a wider interim loss as net fee income slid and the company ditched its dividend.The recruitment company posted a pre-tax loss of 1.9m from £1.1m in the first half of last year as net fee income declined 30.8% to £10.1m amid a downturn in the oil and gas sector. Revenue fell by 24.5% to £65.9m.Hydrogen said it has taken the decision not to pay an interim dividend as the group is "going through a period of major transition". It said it will take a view on its full-year dividend based on how it performs in the second half.The company said costs continue to be taken out of the business to reflect lower levels of NFI and an exceptional charge of £1.8m relating to restructuring has been booked.It said benefits on the cost savings are expected to flow through in the second half of the year.Chief executive officer Ian Temple said: "We have managed to cope with the challenge with our strong and diversified business model producing a break-even underlying performance in difficult circumstances."Since taking over as CEO in March 2015 I have conducted a thorough review of the business. We have a strong position in a number of specialist markets with a great client base."At 1040 BST, Hydrogen shares were down 22.6% to 41p.