Hydrogen Group on track to meet profit expectations
· Investment in Technology practice showing returns with NFI increasing by 40%
· Continued strong growth in Singapore, with NFI increasing by 16% (28% in constant currency) against the same period in 2013
· Office opened in Kuala Lumpur, Malaysia, in support of major contract win and to support growth in Asia region
· Headcount in Houston office increased following successful US opening in April 2013
· Tight working capital control and strong cash collection trade receivables measured as days of sale outstanding (DSOs) maintained at year-end level of 22 days (1H 2013: 21 days)
Commenting, Ian Temple, Chairman of Hydrogen Group plc said:
"The Group invested heavily in headcount towards the end of 2013 on the basis of a strong client pipeline and improving activity. Unfortunately, for differing reasons, the improvement failed to materialise within the timeframe anticipated and the Group faced increased costs during a period when net fee income growth was constrained. Management acted decisively to address the situation, simplifying the organisation, focusing areas for investment and reducing costs.
Throughout the change we have continued to invest in our business for the medium term, focusing on the development of long term relationships with strategic clients, and increasing headcount in areas where growth in NFI and profitability are available.
We saw an improving trend in profitability through the half year and this has continued into the third quarter. Our focus remains on the development of client relationships, robust performance management and continued vigilance over costs. I am confident that the Group remains on target to meet its expectations for the year."