NFI down at year-end 2019 for Hydrogen
Hydrogen Group has provided a trading update for the year ended 31st December 2019.
As reported in its trading update on 15th November 2019, trading conditions were adversely impacted in the UK by both political uncertainty and the impact of the proposed changes to the IR35 legislation on clients' contract hiring plans, and by the public disorder and demonstrations in Hong Kong. These headwinds continued throughout the fourth quarter.
In the US year-on-year growth levels were strong. However, the Group has experienced some reduction in quarter-on-quarter growth rates as recent investment in both new staff and physical infrastructure was onboarded and bedded in. Overall the board believes that this market provides significant and sustainable growth opportunities moving forward.
As a result, net fee income for the year totaled approximately £29.4m (2018: £30.5m).
Notwithstanding these challenges, the Group's underlying profit before tax for the year will be broadly in line with current management expectations.
The Group's balance sheet remains strong with net cash at 31st December amounting to £4.5m (2018: £4.9m), net of payments during the year of approximately £1.3m in respect of dividends, share buy backs, and earn out payments in relation to the acquisition of Argyll Scott.
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