International recruiter Hydrogen Group has “traded well” in H1 buoyed by a strong performance from its contract business, according to a trading update for the six months ended 30 June 2011.

The group reports that trading for the first six months of the year was ahead of the board’s expectations, with net fee income (NFI) up roughly 40% year-on-year. While the group’s contract business has delivered a second consecutive period of “record” performance, it has experienced a “slow” start to the year in its permanent recruitment markets, most pronounced in financial services, but activity has increased steadily across the period.

The statement continues: “The group has continued to make good progress during the first half of the year on its strategy of internationalisation. We have maintained our split of around one third of our NFI coming from international markets despite the strong performance of our UK contract business during the period.”

Executive chairman Ian Temple says: ” We have benefited from the investments we have made in our business, both in the UK and overseas. We are well positioned for the remainder of year and will invest in new markets and geographies, while maintaining our strong focus on costs and working capital management.”