HYDG Hydrogen Group Plc

TIDMHYDG

RNS Number : 9481Z

Hydrogen Group PLC

16 January 2020

Hydrogen Group plc ("Hydrogen Group", the "Group")

Trading Update

Hydrogen Group, the global specialist recruitment group, is pleased to provide the following trading update for the year ended 31 December 2019.

As reported in its trading update on 15 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 totalled approximately GBP29.4 million (2018: GBP30.5 million).

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 31 December amounting to GBP4.5m (2018: GBP4.9 million), net of payments during the year of approximately GBP1.3m in respect of dividends, share buy backs, and earn out payments in relation to the acquisition of Argyll Scott.

Enquiries:

   Hydrogen Group plc                                                      020 7090 7702 

Ian Temple CEO

John Hunter COO & CFO

   Shore Capital (NOMAD and Joint Broker)                020 7468 7904 

Edward Mansfield / James Thomas

   Whitman Howard (Joint Broker)                                020 7659 1234 

Hugh Rich

Notes to the editor

Hydrogen Group is a group of specialist recruitment and people solutions businesses with a proven global platform with clients' in over 50 countries. We deliver by building market leading niche specialist teams that develop a deep understanding of candidate and clients' needs and developing solutions.

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