Hydrogen remains profitable in tough year for global recruitment

Hydrogen (AIM: HYDG) reported a decline in full year revenues and profits, though the group still called it a good performance amid challenging market conditions and highlighted its cost cutting moves and return to profits in the second half.

The revenues for the year to 31 December 2009 declined 23% from £96.2 million to £74.1 million as net fee income (NFI) decreased 37% from £26.7 million to £16.8 million, while profits declined from £3.7 million to £0.3 million.

However, the group’s administration costs were reduced by 28%, a £0.9 million debt turned into net funds of £3.7 million and a NFI growth of 12% year-on-year was recorded in the second half.

The full year report also highlighted operational achievements including the opening of the group’s first Far East Asian office in Singapore, an NFI growth of 50% in its engineering business and a rise of the share of the group’s international operations of total NFI to 22% from 12%, while Australian NFI soared 186% to £1.2 million.

The group offered a cautiously optimistic outlook for 2010, while noting continued signs of improvement in the UK and its positive balance sheet that it said gave it confidence for 2010.

“We are cautiously optimistic in our outlook for 2010 at this early stage in the year.  Our strong business model and sound balance sheet give us confidence that we are well positioned for the year ahead,” said executive chairman of Hydrogen Ian Temple.

http://www.proactiveinvestors.co.uk/companies/news/13981/hydrogen-remains-profitable-in-tough-year-for-global-recruitment-13981.html