UK recruitment firm Hydrogen Group (HYDG: AIM) reported revenue today for the full year ending 30 June 2019 of £64.1 million, a decrease of 9% in constant currency compared to £68.6 million during the same period last year.

Lower demand for contractors in the UK drove the decline in group revenue for the period. This was slightly offset by increased and higher margin contract activity in the US.

Group net fee income fell by 2% in constant currency. Permanent revenue growth and improved contract margins contributed to group net fee income. Permanent NFI grew 8% to £9.2 million. Meanwhile, contract NFI decreased by 2% to £6.1 million.

EMEA net fee income was broadly flat at £8.6 million on both a reported and constant currency basis. While the Middle East business grew strongly, in the UK, which accounts for the greater part of the group's EMEA operations, client demand and confidence levels have been impacted by Brexit related uncertainty. Notwithstanding this, NFI grew in all core UK practice areas save for Business Transformation, where demand was adversely impacted by the significant fall in activity levels, due to the completion of existing projects and a lack of new projects, at the group's largest client.

In APAC, Net fee income fell by 12% (16% in constant currency terms) to £4.9 million. The group said market conditions have been challenging in Hong Kong and Singapore, which has been partially offset by continued growth in Australia and Thailand. Activity levels have improved during Q3, positioning the region for a more robust performance in H2.

USA net fee income grew exceptionally strongly by 233% in constant currency to £1.9 million.

Ian Temple, CEO of Hydrogen Group, commented, "I am delighted to be able to report continued strong earnings growth despite the group experiencing more challenging market conditions in a number of Asian markets, and the impact of Brexit related uncertainty on demand levels for certain skill sets in the UK. The performance is a testament to both the operating model that we have developed and our agile business model that has allowed us to pivot investment into higher growth markets, particularly in the USA.”

Revenue by region was broken down as follows.

Revenue by recruitment classification was broken down as follows.

“Our balance sheet remains strong, and the group continues to be well placed to make acquisitions and investigate potential targets,” Temple said. “The Board remains confident that the full year outturn will be in line with current market expectations.”

As of last trade, Hydrogen Group PLC (HYDG:LSE) traded at £50.75, up 4.46% on the day and 44.46% above the 52 week low of £35.13 set on 29 October 2018. Based on its current share price the company has a market value of £16.09 million.