Talent management firm Hydrogen has announced its preliminary results for the year ended 31 December 2008.

The group’s revenue fell 7% to £96.2m, compared with £103.4m in 2007.

Hydrogen’s profit before exceptional items was £3.7m, down from £8m in 2007.

Contract net fee income grew 4% to £11.9m, up from £11.4m in 2007 and now represents 45% of net fee income, compared with 36% the previous year.

Cost reduction and debtor management with trade debtors fell by 21.3% and days of sales outstanding were cut to 40 days, down from 43 days in 2007.

Ian Temple, executive chairman of Hydrogen, says: “In line with our expectations of deteriorating market conditions in the second half of 2008, we took swift action to reduce the cost base and focused on cash management. We are particularly pleased to have exceeded our cash generation targets.

“As a result of the business efficiencies achieved in 2008, I am pleased with the profitable start in line with expectations for 2009, despite the ongoing challenging conditions.

“We anticipate 2009 will be a difficult year and will continue to manage the business in line with the economic backdrop, while making prudent investment decisions to enter growth markets of the future, using our proven incubator model.”