Hydrogen Group PLC (LON:HYDG) saw its shares rise on Tuesday as the specialist recruiter saw a swing back to a first-half profit thanks to an acquisition boost to revenues and said it expects full-year numbers to beat expectations.
The AIM-listed firm reported a pre-tax profit of £1.1mln for the six months to 30 June, a turnaround from a £611,000 loss a year earlier as revenue jumped 21% higher to £68.6mln.
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The company saw its net fee income leap by 57% to £14.8mln, up from £9.4mln a year earlier, mainly due to the acquisition of Argyll Scott Holdings in June 2017, which has now been successfully integrated.
Hydrogen said it is well placed to make further acquisitions for which it continues to consider potential targets.
Ian Temple, Hydrogen’s chief executive officer said: "The key objectives of the business combination with Argyll Scott have been successfully achieved and we have established a scalable platform that enables us to look forward confidently to further sustainable long-term organic profit growth."
He added: “With the current levels of activity, the board is confident that the underlying profit and earnings per share for the full year will be substantially ahead of current market expectations.”
Hydrogen also reinstated its interim dividend with a 0.5p per share payout, having not paid a dividend the previous year.
In late morning trading, Hydrogen shares were 16.5% higher at 74.00p.