The Board of Hydrogen Group plc (“Hydrogen Group” or the “Group”) (AIM: HYDG) announces its unaudited results for the half year ended 30 June 2019.
Highlights
· Underlying** Profit Before Tax (“PBT”) increased by 51% to £1.9m (H1 2018 as restated^: £1.2m) and profit conversion of Net Fee Income* (“NFI”) increased to 12.1% (H1 2018 as restated: 8.3%)
· Reported PBT increased by 19% to £1.4m (H1 2018 as restated: £1.2m)
· NFI increased by 4% to £15.3m (H1 2018: £14.8m)
o Permanent NFI grew 8% to £9.2m (H1 2018: £8.5m)
o Contract NFI decreased by 2% to £6.1m (H1 2018: £6.3m)
o Group contract margin increased to 11.2% (H1 2018: 10.4%)
· Net cash of £3.4m at 30 June 2019 (31 December 2018: £4.9m and 30 June 2018: £1.3m)
· Underlying EPS*** in the period increased by 1.3p, 38%, to 4.7p (H1 2018 restated: 3.4p)
· Reported EPS in the period increased to 3.6p (H1 2018 restated: 2.9p)
· 20% increase in interim dividend to 0.6p per share (2018: 0.5p per share)
* Net Fee Income is the equivalent of gross profit
** Adjusted for foreign exchange (gains)/losses, share based payments, non-controlling loss/(interest), amortisation of acquired intangibles and exceptional items.
*** Underlying PBT less tax divided by weighted average number of shares
^ Restated in respect of the first-time adoption of the new IFRS 16 standard applicable for periods beginning on or after 1 January 2019 and applied retrospectively
Commenting, Ian Temple, CEO of Hydrogen Group plc said:
“I am delighted to be able to report continued strong earnings growth despite the Group experiencing more challenging market conditions in a number of Asian markets, and the impact of Brexit related uncertainty on demand levels for certain skill sets in the UK. The performance is a testament to both the operating model that we have developed and our agile business model that has allowed us to pivot investment into higher growth markets, particularly in the USA. Our balance sheet remains strong, and the Group continues to be well placed to make acquisitions and investigate potential targets. The Board remains confident that the full year outturn will be in line with current market expectations.
“I would like to take this opportunity to thank all our staff for their commitment and hard work over the period.”
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