UK recruitment firm Hydrogen Group (HYDG: AIM) reported revenue yesterday for the full year ending 30 June 2018 of £68.6 million, an increase of 21% and up 22% in constant currency compared to £56.8 million during the same period last year.

During the H1 period, Hydrogen Group’s growth in NFI was primarily due to last year’s acquisition of London-based recruitment firm Argyll Scott Limited, which Hydrogen Group said has now been substantially integrated into the Group. Hydrogen Group also attributed the increase in NFI to strong underlying growth across the group.

Meanwhile, Underlying Profit Before Tax increased by £0.9 million to £1.1m (H1 2017: £0.2 million).

Permanent NFI grew 100% to £8.5 million, compared to £4.3 million last year. Contract NFI increased by 23% to £6.3 million, compared to £5.1 million last year. The group added that Proforma NFI increased by 10%.

Ian Temple, CEO of Hydrogen Group, commented, "I am pleased to be able to report a strong trading performance in the first six months of the year, with Net Fee Income on a pro-forma basis up 10% on the first six months of 2017. 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. Furthermore, with a strong balance sheet, the group is well placed to make acquisitions and will continue to investigate potential targets.”

Revenue by region was broken down as follows.

Revenue by recruitment classification was broken down as follows.

Looking ahead, Temple said, “With the current levels of activity, the Board is confident that the underlying profit and EPS for the full year will be substantially ahead of current market expectations.”

In trading yesterday Hydrogen Group shares closed at £73.50, up 15.7% on the day. Based on its current share price the company has a market value of £25.40 million.