Harvey Nash (HVN: LSE), the UK-based IT staffing firm, announced a trading update for the first quarter ended 30 April 2018. Gross profit for the quarter was up 7% on a like-for-like basis when compared to the same period last year.

The trading update comes in advance of Harvey Nash’s Capital Markets Day investor event today.

Gross profit growth for Q1 2018 on a like-for-like basis was as follows.

UK & Ireland Gross Profit was up 20%, on a like-for-like basis, when compared to the previous year and had robust growth in the volume of contractors, despite uncertainty in relation to the ongoing Brexit negotiations.

The Benelux operations continued to be a key driver of organic growth in Europe with 13% growth led by strong demand for contract recruitment and managed services.

The Nordics was up 7% and, in Central Europe, gross profit was up 5%, driven mainly by Germany.

In the Rest of World, Gross Profit was 23% lower, largely as a result of what the company described as “an exceptional executive search quarter and higher solutions revenues in the prior year in the US”.

The group completed the acquisition of eMenKa, a Belgian IT solutions firm, on 15 May 2018.  Harvey Nash added that demand for specialist technology skills remains high as a result of an acute skills shortage and as companies are increasing investment in technology and systems.

Albert Ellis, Chief Executive Officer, commented, "I am very pleased to report that the strong organic growth reported in the second half of last year has continued into the current year and the first quarter is tracking ahead of budget. The group has a clear growth strategy, and with the additional contribution from the annualised effect of the acquired businesses and of the transformation programme, we are confident of continuing to make significant progress in 2018."

Harvey Nash Group set a new 52-week high during today's trading session when it reached £113.00. Over this period, the share price was up 35.14%. As of last trade, the group traded at £112.00, up 5.66% on the day. Based on its current share price the company has a market value of £76.78 million.