22 Jul 2014 07:00
22 July 2014
Hydrogen Group plc
("Hydrogen" or "the Group")
(AIM:HYDG)
Trading Update
Hydrogen Group plc, the global specialist recruitment company, today provides an update on trading for the six months ended 30 June 2014.
As reported in the AGM Statement on 22 May 2014, while underlying levels of activity in terms of vacancies and interviews have been strong, the Group has experienced delay in the conversion of activity into placements and Net Fee Income ("NFI"). In addition, the strength of Sterling has had an adverse impact on reported NFI compared with the first half of 2013. As a result, the Group now expects NFI for the period to 30 June to be lower than in the same period last year by around 7% (4% on a constant currency basis).
Management has undertaken a comprehensive restructuring of the business with the aim of increasing profitability. Implementation of the changes was substantially complete by the end of June. The Group will report an exceptional item for non-recurring costs associated with the changes. Exceptional costs for the full year are currently expected to be in the region of £1.8m.
The business has remained cash generative in the period and control of working capital remains strong.
Throughout the restructuring we have continued to invest in our business development activity, fostering deeper and wider relationships with our clients. As a consequence, our pipeline of business remains as healthy as it has ever been. The strong client pipeline and reduced cost footprint give the Board confidence that future business profitability will improve, and the Board therefore believes that profit for the full year before exceptional items will be in line with expectations.
The results for the six months to 30 June 2014 are expected to be announced on Tuesday 16 September 2014.
Enquiries:
Hydrogen Group plc | 020 7002 0000 |
Ian Temple, Chairman Tim Smeaton, Chief Executive John Glover, Finance Director
| |
Citigate Dewe Rogerson | 020 7638 9571 |
Michael Berkeley Caroline Merrell | |
Shore Capital (NOMAD and Broker) |
020 7408 4080 |
Bidhi Bhoma Edward Mansfield |
Notes to Editors:
Hydrogen is a global specialist recruitment business with a turnover in excess of £160m. We build relationships by finding specialist candidates our clients have difficulty sourcing, placing professionals in more than 75 countries. Our joined-up practice teams combine international reach with local expertise and specialist knowledge, to provide visibility of world class candidates.
http://www.hydrogengroup.com