Losses At Hydrogen
Losses At Hydrogen
The Board of Hydrogen Group Plc is pleased to announce its unaudited interim results for the six months ended 30 June 2009.
Revenues were 34.9 million down from 49.9 million and gross profits were 7.9 million, down from 14.8 the previous year. Hydrogen made a loss before tax of 5.8 million versus a prior profit of 3.1 million.
Satisfactory first half performance in a very challenging market. The Group achieved break even, before exceptional items.
Cash generated from operating activities, before exceptional items of 3.7m (H1 2008: 2.0m), resulting in a net cash position at 30 June 2009 of 2.3m (31 December 2008: net debt 0.9m).
Despite significant cost reductions to align the cost base of the Group with market activity, continued investment in international markets and new disciplines has yielded encouraging results.
Contract versus permanent mix of Net Fee Income 55:45 in favour of contract (31 December 2008: 44:56).
Non-UK Net Fee Income for the period represents 19% of the Group's total (30 June 2008: 11%) Australia net fee income increased by 128% to 0.5m (2008: 0.2m).
Engineering business showing strong growth increasing net fee income by 87% to 0.8m (2008: 0.4m).
Reduction in administration costs of 31% on first half 2008 27% reduction in headcount from peak in July 2008.
Commenting, Tim Smeaton, Chief Executive of Hydrogen Group plc said:
"As anticipated, the challenging trading environment seen in 2008 has continued into the first six months of the year as the global macro economic uncertainty continues to impact international recruitment markets.
Whilst the start of the second half of 2009 has seen a modest improvement in some sectors compared with the first half, we are still understandably cautious and believe the market will continue to be challenging for the remainder of the year.
In the short term we are focused on managing our business as efficiently as possible. The Group reacted quickly to the downturn in the market in 2008 and we remain vigilant for any upturn. Our net cash balance allows us flexibility to invest selectively in new markets and geographies, ensuring we are well placed for long term growth and to take advantage of future opportunities."