Underlying profit to be ahead at year-end 2018 for Hydrogen
Hydrogen Group has released a pre-close trading update and notice of preliminary results for the year ended 31st December 2018.
The group continued to trade robustly though the latter part of 2018 with all regions maintaining growth. As a result, the board has reported that underlying profit for 2018 will be ahead of current market expectations.
In the fourth quarter of 2018, the group opened two new offices in the USA, in San Diego and Austin, as well as relocating its existing Houston office to larger premises. The group is continuing to develop its US platform, and as a result the board will be opening a fourth office in the region in Charlotte, North Carolina. Together, these offices will provide a foundation for continued sustainable growth in the region.
Cash generation throughout H2 2018 was strong, driven both by profit growth and improved cash conversion resulting from a focus on working capital management. As a result, the board has reported that year end net cash was £4.9m (31 December 2017 net debt of £0.4m).
As reported in the interim results on 18th September 2018, the group has built a scaleable platform to sustain future growth, which can be supplemented by selective acquisitions that meet the board's strict criteria relating to financial, operational, strategic and cultural fit. Supported by the group's continued strong trading performance strengthening the balance sheet, the Board is currently actively exploring a number of acquisition opportunities that it believes may meet these criteria.
Photo courtesy of Shutterstock.com