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UK – Harvey Nash forecasts full year profit growth, despite strong currency headwinds

27 February 2015

UK-based staffing firm Harvey Nash (HVN: LSE), in a trading update released today, confirmed that adjusted profit before tax for the full year ending 31 January 2015 is expected to be in line with management's revised expectations.

This is despite further adverse currency movements since the trading statement issued on 25 November 2014.

Harvey Nash expects to report gross profit growth for the year of 0.8% (5.1% in constant currency), driven primarily by the company’s Contracting and Outsourcing divisions.

Expected gross profit growth/decline for 2014 by division, compared with 2013, is as follows: 

2014 Actual Constant Currency
Permanent -2.2% +2.6%
Contracting +2.7% +6.4%
Outsourcing +2.8% +7.4%
Total +0.8% +2.1%

Albert Ellis, Chief Executive Officer of Harvey Nash, commented: "These results reflect the significant progress made by the Group over the past year, despite strong currency headwinds and challenging markets in many parts of the world. Strong trading cash flow has enabled us to continue to invest in the future growth of the Group with fee-earning capacity increased by 10% and additional locations established in the UK and Asia.”

In trading today, the company’s share price increased by 0.4% to £0.86, a decrease of 24.7% compared with a year ago. Based on its current share price, the company has a market value of £63.1 million.