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Date: Thursday 01 May 2008

LONDON (ShareCast) - Current economic conditions have caused some weakness in net fee income at Hydrogen Group, the recruitment outfit admitted, as its offer for rival Imprint lapsed.

Profitability for the year to date has been in line with forecasts, it added, while cost control has been “firm”. The company is looking forward to the traditionally strong second quarter of the year.

“We will continue to apply strict financial discipline in assessing future acquisition opportunities, as and when they arise,” said executive chairman Ian Temple.

“We are well placed to address current market conditions through our diversified business model and our focus on mid level professional recruitment.”

The group’s 110p a share cash offer for Imprint lapsed as a recommendation of its bid was withdrawn last month after Irish finance recruitment company Premier offered 115p a share.

Hydrogen will not make any contractual offer to acquire the share capital of Imprint for 12 months, unless otherwise approved in writing by Imprint, it said.

Chromium producer Elementis has agreed to buy Taiwan-based Deuchem for £40.4m in cash.

Closing is anticipated to take place during the second half of 2008 and the transaction is expected to be earnings enhancing in the first full year of ownership.

“Deuchem has a strong presence in Asia in terms of its commercial team, technical organization, and manufacturing group, and when combined with the Elementis infrastructure provides an enviable platform to drive growth,” said chief executive David Dutro.

“Deuchem's complementary product portfolio, customer service culture, and the opportunity to leverage combined technologies globally gives us confidence that this acquisition will create shareholder value,” he added.

In the year to end December 2007, Deuchem reported sales of £37.9m and pre-tax profits of £5.1m.

Irish insurer and financial services group FBD Holdings has rejected an approach from Dutch rival Eureko.

“The board of FBD Holdings notes the continuing weekend press speculation and confirms that it has received a further letter from Eureko B.V. The board again confirms that it has not received an offer or an intention to make an offer,” it said.

The company considered all aspects of the approach with its advisors, including Goldman Sachs, “and has concluded that it is entirely without merit”.

AxisMobile said its cash position has ‘momentarily deteriorated’ due to a slower than anticipated increase in revenue and added that it does not have sufficient cash to see itself through to financial breakeven.

The consumer mobile email specialist said it is now considering its options, including the disposal of certain or all assets of the business or additional funding from strategic investors.

However, the group still believes in the inherent strength of the business and said it is confident its 2008 revenues will be considerably higher than its 2007 results.

Hopes that Microgen will bid for software systems provider Scisys disappeared after the firm declared it has “no present intention” of launching an offer.

Last month, Microgen ended takeover talks after an indicative offer was rejected, but said it remained interested in a combination of the two companies on the basis of its previously submitted proposal.

It bought 3.2m Scisys shares at 32p each on 3 April and almost half a million more the following week at 36.5p, taking its stake to 3.67m shares, or nearly 13% of the company

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