Harvey Nash (HVN: LSE), the UK-based IT staffing firm announced its unaudited interim results for the six month period ended 31 July 2018. Revenue rose by 14.8% to £292.2 million. On a constant currency basis, revenue rose by 15.3%.

The group said its results were driven by the increases in contract recruitment, contract management and IT outsourcing as a result of both organic growth and acquisitions. Profits were boosted by acquisitions as well as a growing number of freelancers.

In August, Harvey Nash announced that it had agreed to an acquisition offer from The Power of Talent Ltd (Bidco) an entity owned and controlled by investment funds managed by DBAY Advisors Limited.

On 15 May 2018 the group announced and completed the acquisition of eMenka NV, a Belgian IT solutions company, for an initial cash consideration of €1.0 million (£0.9 m) with a further €1.0 million (£0.9 million) of potential deferred consideration. Based in Antwerp, eMenka focuses on placing Microsoft specialists in full-time employee and independent contractor roles.

Gross Profit by geography was broken down as follows.

In the UK & Ireland, Harvey Nash said the businesses performed well, benefiting from the Crimson acquisition made last year and strong organic growth. This was achieved despite a challenging market and declines reported across the recruitment sector in light of uncertainty surrounding the negotiations between the European Union and the UK. The number of freelancers in the region increased over the period by 6.9%.

In Mainland Europe, the group’s platform in Benelux continues to drive organic growth. The Benelux region reported the biggest gross profit growth of 13.7%.

In the Rest of World region, results were mixed with strong performances from the Vietnam-based IT Outsourcing business set against declining revenues in the USA and Australia.

Chief Executive Officer, Albert Ellis commented on the results, “I am pleased that in a challenging market our UK business has increased revenues and delivered a robust financial performance despite declines reported across the recruitment sector in light of uncertainty surrounding the negotiations between the European Union and the UK.” “Overall, trading remains in line with the Board’s expectations for the full year,” Ellis said.

As of last trade Harvey Nash Group traded at £127.00, down 0.97% on the day and 5.58% below its 52-week high of £134.50, set on 30 August 2018. Based on its current share price the company has a market value of £94.20 million.