Hydrogen Group reported a fall in its first-half pre-tax profit as revenue declined.

For the six months to June 30, the company’s pre-tax profits before exceptional items fell to £3.3m from £3.91m a year earlier. Revenue also declined to £49.9m from £51m.

Commenting on the results, Ian Temple, executive chairman said: “Despite a positive start to 2008, the more uncertain macroeconomic environment has resulted in trading conditions for some of our brands becoming more challenging in the UK and this trend has continued into the second half of the year.

Termple added that the group “expected the challenging trading conditions to contine into the second half of the year.”