House broker Shore Capital has downgraded its profit forecast for recruitment firm Hydrogen.
The 2013 forecast has been cut from £2.8m to £2.3m, while the 2014 figure has been reduced from £3.5m to £2.7m. the current 2013 earnings per share fore cast of 7p a share is more than one-quarter down on the forecast six months ago.
There has been a 10% increase in headcount but revenues will be flat. There are signs of an upturn in financial services demand. Technical and scientific recruitment is growing strongly.
At 106.5p a share, down 12p, Hydrogen is valued at £25.2m. The total dividend should be unchanged at 4.5p a share, giving a yield of 4.2%.
The shares are trading on 15 times 2013 prospective earnings, falling to 13 in 2014.
Net debt is expected to rise from £2.8m to £4m by the end of 2013, thanks to the move to a new head office in London.
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