16 Jan 2020 07:00
Hydrogen Group plc ("Hydrogen Group", the "Group")
Trading Update
Hydrogen Group, the global specialist recruitment group, is pleased to provide the following trading update for the year ended 31 December 2019.
As reported in its trading update on 15 November 2019, trading conditions were adversely impacted in the UK by both political uncertainty and the impact of the proposed changes to the IR35 legislation on clients' contract hiring plans, and by the public disorder and demonstrations in Hong Kong. These headwinds continued throughout the fourth quarter.
In the US year-on-year growth levels were strong. However, the Group has experienced some reduction in quarter-on-quarter growth rates as recent investment in both new staff and physical infrastructure was onboarded and bedded in. Overall the Board believes that this market provides significant and sustainable growth opportunities moving forward.
As a result, net fee income for the year totalled approximately £29.4 million (2018: £30.5 million).
Notwithstanding these challenges, the Group's underlying profit before tax for the year will be broadly in line with current management expectations.
The Group's balance sheet remains strong with net cash at 31 December amounting to £4.5m (2018: £4.9 million), net of payments during the year of approximately £1.3m in respect of dividends, share buy backs, and earn out payments in relation to the acquisition of Argyll Scott.
Enquiries:
Hydrogen Group plc 020 7090 7702
Ian Temple CEO
John Hunter COO & CFO
Shore Capital (NOMAD and Joint Broker) 020 7468 7904
Edward Mansfield / James Thomas
Whitman Howard (Joint Broker) 020 7659 1234
Hugh Rich
Notes to the editor
Hydrogen Group is a group of specialist recruitment and people solutions businesses with a proven global platform with clients' in over 50 countries. We deliver by building market leading niche specialist teams that develop a deep understanding of candidate and clients' needs and developing solutions.