In a mid-year trading statement released today, recruitment firm Hydrogen Group (HYDG: AIM) announced that, while underlying levels of activity in terms of vacancies and interviews have been strong, the group has experienced delay in the conversion of activity into placements and net fee income (NFI).

The company advised that the strength of Sterling has had an adverse impact on reported NFI, compared with the first half of 2013. As a result, the Group now expects NFI for the period ending 30 June 2014 to be lower than the same period last year by around -7% (-4% in constant currency).

Hydrogen’s management has undertaken a comprehensive restructuring of the business with the aim of increasing profitability. Implementation of the changes was substantially complete by the end of June.

The Board, however, remains confident that future business profitability will improve and that profit for the full year, before exceptional items will be in line with expectations.

In trading today, the company’s share price fell by -6.1% to £0.78, a decline of -11.4% compared with a year ago. Based on its current share price, the company has a market value of £18.5 million.