Recruitment firm Hydrogen Group maintained its interim dividend despite a decline in net fee income.
In the six months to June 2014, net fee income fell from £15.9m to £14.6, partly down to the strengthening of the pound, while Hydrogen fell into loss after £1.49m of exceptional restructuring costs with a smaller amount to come in the second half. There would have been a small profit without these charges. The interim dividend is unchanged at 1.5p a share.
The brighter parts of the business are Singapore and the technical recruitment activities.
Net debt was £3.8m at the end of June 2014.
House broker Shore Capital believes the cost reductions achieved will help underlying full year pre-tax profit edge up from £2.4m to £2.5m. It even thinks that the total dividend could be edged up from 4.6p a share to 4.7p a share. That would provide a yield of 5.6%.
At 85.5p a share, Hydrogen is valued at £20.4m. The shares are trading on 11 times prospective 2014 earnings.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFSeptember2014_60.pdf
© 2020 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.