(Alliance News) - AIM-listed Hydrogen Group PLC on Thursday said income slipped slightly in the first half of its current financial year amid political uncertainties in the UK and Hong Kong.
The London-based recruitment company said trading in the UK in 2019 was hurt by both political uncertainty and the impact of the proposed changes to the IR35 legislation on clients' contract hiring plans. IR35 allows UK tax collector HMRC to demand additional tax and National Insurance contributions where it determines a contractor is effectively an employee.
Elsewhere, Hydrogen said its trading was hurt by the public disorder and demonstrations in Hong Kong.
In the US, Hydrogen said year-on-year growth levels were "strong". However, it has experienced some reduction in quarter-on-quarter growth rates amid recent investment in both new staff and physical infrastructure.
Hydrogen said net fee income for the year totalled GBP29.4 million, down 3.6% compared to GBP30.5 million a year ago, with pretax profit expected to be broadly in line with expectations.
Looking ahead, Hydrogen said it believes that the US market provides "significant and sustainable" growth opportunities moving forward.
The stock was trading 1.0% higher in London on Thursday at 47.95 pence a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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