Hydrogen Group, the UK-based specialist recruitment group, provided an update on trading for the year ended 31 December 2019.

As reported in the group's interim report on 3 September 2019, the Hydrogen Group said it traded in line with expectations during Q3.   Subsequently, trading conditions in two of the group's key markets have deteriorated.   

In the UK, the group said demand levels have continued to be impacted by growing political uncertainty. 

“This is now being exacerbated by the impact of the proposed changes to the IR35 legislation on clients' contract hiring plans,” the group stated.

In the Asia Pacific region, Hydrogen Group said public disorder and demonstrations in Hong Kong are now having a material impact on local activity levels.     

As a result of the uncertainty highlighted in the UK and Asia Pacific, the Board expects the group's full year underlying profit before tax to be below current management expectations. 

“The Board continues to have confidence in the group's future prospects and will provide a further update in the new year,” Hydrogen Group stated.

After issuing its profit warning on Friday, Hydrogen Group shares closed at £40.00, down 26.61% on the day and 6.52% above its 52-week low of £37.55, set on 15 November 2019. Based on its current share price the company has a market value of £13.19 million.