Harvey Nash (HVN: LSE), the UK-based IT staffing firm, announced a trading update for the year ending 31 January 2018. The company stated that results are expected to be in line with market expectations.

During the year, Harvey Nash made a couple of acquisitions, including Crimson Limited, a UK-based IT solutions and recruitment company. The group also announced that through its Swedish subsidiary Alumni AB, that it acquired PAT Management AB, a Swedish HR consultancy.

Gross Profit for the year ended 31 January 2018 was as follows.

UK & Ireland gross profit is up 6% year on year, with demand improving over the second half of the year for technology recruitment despite widely reported Brexit-related market volatility, according to Harvey Nash. This increase in demand was broadly spread across the UK with a number of financial services companies actively relocating operations outside of London.

Meanwhile, Harvey Nash stated that Mainland Europe continues to be the key driver of organic growth in the group, with Gross Profit up 5% overall year on year, led by strong demand for contract recruitment and managed services in the Benelux, which was up 20% year on year.

In the Rest of World, gross profit was 19% lower largely as a result of reduced contractor numbers in the US and the impact of reductions in headcount. Harvey Nash stated that its transformation programme has put the Rest of World region in a much better position going forward as they have focused the group’s geographic presence on its core markets and closed loss making offices.

“Our outsourcing business in Vietnam exceeded management expectations along with executive search in the US, which reported record results,” Harvey Nash announced. “During the year we completed two acquisitions which are expected to be enhancing to earnings per share and are already delivering benefits with further improvement expected in the current year. Our transformation programme is on track, which is focusing the business on its core markets, streamlining the operations and improving efficiency and we anticipate further savings to flow through in the current financial year.”

The group plans to provide a more detailed update in the announcement of its preliminary results on 27 April 2018.

“I am very pleased to report that the outturn in the last financial year is expected to be in line with market expectations which were revised upwards on three occasions during the year,” Albert Ellis, Chief Executive Officer, said. “Last year was an important one for the group, in which we initiated a transformation programme to streamline and refocus the business and completed two acquisitions. Our acquired businesses are already contributing to the group’s profitability alongside good levels of organic growth.”

“We enter 2018, which is the group’s 30th year since incorporation, with a strong balance sheet and well positioned to capitalise on the continued growth in demand for technology and digital skills,” Ellis said.

As of last trade Harvey Nash traded at £89.80, up 3.34% on the day and 13.45% below its 52-week high of £103.75, set on 14 July 2017. Based on its current share price the company has a market value of £63.83 million.