Hydrogen Group's net fee income fell by 12% to £8.9m in the six months to the end of June.
But the group has moved back into growth with a 6% (3% on a constant currency basis) increase in NFI on the second half of 2015 of £8.5m which is due primarily to:
- 31% growth in EMEA Life Science to £1.7m (H2 2015: £1.3m)
- 8% growth in EMEA Business Transformation to £2.6m (H2 2015: £2.4m)
- Asia NFI up 18% to £1.3m (H2 2015: £1.1m).
- Contract NFI margin increased to 9.6% (H2 2015: 9.3%)
- EMEA Legal Practice held back in the lead up to the EU Referendum with NFI down 12.5% to £1.4m (H2 2015: £1.6m)
- EMEA Energy NFI down 25% to £0.6m (H2 2015: £0.8m)
- US Business building a Life Science contract base with NFI up to £0.2m (H2 2015 £0.1m)
- Administration costs, which are predominantly based in sterling, were down 15% to £8.7m (H1 2015: £10.2m) and 6% down on H2 2015 administration costs of £9.0m
- Selective hiring to support growth. Headcount increasing 6% to 210 (31 December 2015: 199)
- Operating profit of £0.3m (H1 2015: Operating loss before exceptional items £0.1m)
- Net cash position of £1.0m at 30 June 2016 (31 December 2015: £2.6m and 30 June 2015: £0.1m)
Chief executive Ian Temple said: "The first half of 2016 has seen a stabilisation of the business and a move back into NFI growth compared to H2 2015. We have started hiring in the areas where we have identified sustainable growth opportunities.
"We are implementing a new vision for the business focusing resource on building market leading niche businesses. The roll out will continue into Q3 but is already generating results."