Hydrogen Group recorded a loss of nearly £6m as the company was hit by tough trading in the first half of the year. 

The company announced a pre-tax loss of £5.89m in the six months ended 30 June 2009, compared with a profit of £3.03m in the same period in 2008.

Revenue slumped to £34.9m from £49.9m in 2008. Net fee income fell 47% to £7.9m (2008: £14.9m).

However, the company reduced its administration costs by 31% compared to the first half of 2008. Net cash position stood at £2.3m (31 December: net debt £0.9m.)

Tim Smeaton, chief executive of Hydrogen Group, says: “As anticipated, the challenging trading environment seen in 2008 has continued into the first six months of the year as the global macro economic uncertainty continues to impact international recruitment markets.

“In the short term we are focused on managing our business as efficiently as possible. The group reacted quickly to the downturn in the market in 2008 and we remain vigilant for any upturn. Our net cash balance allows us flexibility to invest selectively in new markets and geographies, ensuring we are well placed for long-term growth and to take advantage of future opportunities.”