Hydrogen reaps cash as profits top expectations

Recruitment outfit Hydrogen Group continued to trade "robustly" towards the end of its financial year, with profit now set to come in ahead of market expectations.

Hydrogen reported "strong" cash generation throughout the second half, driven both by profit growth and improved cash conversion resulting from a renewed focus on working capital management.

As a result, the AIM-listed firm wrapped up the year with a cash balance of £4.9m - a marked improvement on the £400,000 in debt it held at the same time a year earlier.

During the fourth quarter, Hydrogen opened two new offices in the US and relocated its existing Houston premises to a larger location as it continued to develop its US platform. It also announced plans to set up a new location in Charlotte, North Carolina later in the year.

Hydrogen said it had built a "scaleable platform to sustain future growth" and noted that it was currently exploring a number of acquisition opportunities that fit its criteria.

As of 0825 GMT, Hydrogen shares had shot up 12.07% to 65p.