FINANCIALS: Profit hit at Hydrogen Group
16 September 2014
Global recruiter Hydrogen Group suffered an 8% profit loss in the six months to June, partially attributable to a restructure of the business.
Tue, 16 Sep 2014Global recruiter Hydrogen Group suffered an 8% profit loss in the six months to June, partially attributable to a restructure of the business.
Its unaudited results showed a net fee income (NFI) decrease of 8%, or 5% at constant currency to £14.6m.
A major restructure within a tight timeframe cost the business an estimated £1.8m, of which £1.5m was spent in the first half of the period, according to the company statement.
Commenting on the results, group chairman Ian Temple said the group had hired many people late last year on the basis of 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 NFI growth was constrained.
“Management acted decisively to address the situation, simplifying the organisation, focusing areas for investment and reducing costs.”
Cost savings from that are already showing in its results, with a 2% reduction in administration costs.
Highlights for the group include growth in Singapore where NFI increased 16%, or 28% in constant currency terms, against the same period last year.
The group also opened a new office in Kuala Lumpur following a major contract win, and to support growth in the Asia region.
Its unaudited results showed a net fee income (NFI) decrease of 8%, or 5% at constant currency to £14.6m.
A major restructure within a tight timeframe cost the business an estimated £1.8m, of which £1.5m was spent in the first half of the period, according to the company statement.
Commenting on the results, group chairman Ian Temple said the group had hired many people late last year on the basis of 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 NFI growth was constrained.
“Management acted decisively to address the situation, simplifying the organisation, focusing areas for investment and reducing costs.”
Cost savings from that are already showing in its results, with a 2% reduction in administration costs.
Highlights for the group include growth in Singapore where NFI increased 16%, or 28% in constant currency terms, against the same period last year.
The group also opened a new office in Kuala Lumpur following a major contract win, and to support growth in the Asia region.
