Harvey Nash, the global executive recruitment and professional services group, issues the following trading update in advance of the group’s final results for the full year ended 31 January 2017 which will be announced on 27 April 2017.

The Board expects to report adjusted pre-tax profit for the year ended 31 January 2017 in line with market expectations. Overall gross profit increased by 8% but declined by 1% on a constant currency basis. While growth was held back in the UK & Ireland by Brexit uncertainty, gross profit was up by 18% in Mainland Europe (4% on a constant currency basis ). The constant currency decline in “Rest of World” was due to challenging market conditions in Hong Kong while in “Offshore Services” it was due to increased costs in Vietnam as a result of the depreciation in the value of sterling during the year.

Gross Profit percentage is broken down by Geography for the year ending i31 January 2017 as follows:

Gross Profit percentage is broken down by Service Line for the year ending 31 January 2017 as follows:

“The group has delivered a resilient trading performance despite the significant uncertainty created by the referendum,” Albert Ellis, Chief Executive Officer, said. “Mainland Europe, which accounts for 40% of total gross profit, continued to make satisfactory progress. Cash flow has materially exceeded expectations with the year ending in a positive net cash position, some £5 million higher than 31 January 2016.”

As of last trade, Harvey Nash Group traded at £60.75, down 1.82% on the day and 20.68% above the 52-week low of £50.34 set on 27 June 2016. Based on its current share price the company has a market value of £45.4 million.