News Column

Hydrogen Group Warns Again On Net Fee Income Due To Delays, Forex

July 22, 2014

Tom McIvor

LONDON (Alliance News) - Hydrogen Group PLC Tuesday warned it now expects net fee income in its first half to be lower than the previous year by around 7% due to delays in the conversion of activity into placements and adverse currency translation rates.

The recruitment company gave specific figures to a warning during May in which the company said it has experienced delays in conversions to completed job placements and is yet to see an overall uplift in net fee income despite increases in jobs and interviews across many areas of its business.

On Tuesday, Hydrogen Group said that it also has been hurt by the strength of the Sterling, leading to an expected 7% drop in net fee income during the six months ended June 30.

The company said it has undertaken a major restructuring of the business with the aim of increasing profitability and implementation of the changes was mainly complete by the end of June.

As a result of the changes, Hydrogen Group said it will report expected non-recurring exceptional item costs of GBP1.8 million.

However, the company said it has remained cash generative during the period and control of its working capital remains strong. The company added that it expects profit for the full year before exceptional items to be in line with expectations.

Hydrogen Group shares were untraded at 82.5 pence on Tuesday.

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Source: Alliance News

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