Hydrogen Group swings statutory loss after acquisition of Argyll Scott

Specialist recruitment company Hydrogen Group announced its final results for the year ended 31 December on Tuesday, with group revenue rising to £125.9m from £116.2m in the prior year.

The AIM-traded firm said full year net fee income was 29% higher at £22.8m, primarily due to the acquisition of Argyll Scott, which completed on 2 June.

Underlying profit before tax was in line with 2016, at £0.8m.

Exceptional items in 2017 of £2.0m arose predominantly from the integration of Argyll Scott into the group, the board explained, rising from nil exceptionals a year earlier.

Hydrogen’s statutory loss for the year was £1.3m, swinging from a profit of £1.5m.

The board claimed to have a “strong” balance sheet at year-end, with net assets of £21.2m - up from £19.0m - while the board proposed a dividend of 0.8p per share for approval at its annual general meeting.

“2017 was a transformational year for the group, principally due to the acquisition of Argyll Scott and its subsequent integration into the group,” said chairman Stephen Puckett.

“I am pleased to report that the rationale behind the acquisition has proved sound and significant progress has been achieved against the objectives set out at the time of the acquisition.”

Puckett said organic growth in the firm’s UK contract book together with the opportunities for both revenue growth and cost synergies created by the acquisition placed the group in a position to deliver profit growth in 2018.

“To that end, we are delighted that trading in 2018 has started well and is significantly ahead of 2017.

“The board's confidence in the group's future prospects has enabled it to re-initiate payment of a dividend with the intention to adopt a progressive dividend policy.”