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UK – Harvey Nash reports Q3 growth

29 November 2013

Staffing Firm Harvey Nash (HVN: LSE) announced in its trading update today that the Group is trading in line with expectations with continued momentum, particularly in the permanent recruitment market, beginning to feed through to the Group’s results.

Revenue for the quarter ending 31 October 2013 increased by +19% compared to the same period last year, while gross profit and operating profit both increased by +6%. Gross profit from permanent recruitment for the quarter was +11% higher than the previous year, gross profit from contracting was +9% higher and, due to redundancy costs in Germany, gross profit from outsourcing was -13% lower.

For the nine months ending 31 October 2013, revenue was +15% higher than the equivalent period in the previous year, gross profit was +6% higher and operating profit was unchanged. This represents significant progress over the course of the year to date. Gross profit from permanent recruitment for the nine months was +8% higher than the previous year, gross profit from contracting was +11% higher and gross profit from outsourcing was -12% lower.

Albert Ellis, Chief Executive Officer of Harvey Nash, commented: “Recovery appears to be taking hold in the USA and the UK with the likelihood that Europe will follow. Whilst clients continue to favour temporary and contract recruitment there are some positive signs of an improvement in permanent revenue. Demand for offshore services is stable although visibility continues to be limited in Europe.”

“Our successful strategy for growth during the downturn has resulted in improved revenues and profits whilst strong cash generation has supported a +10% increase in the interim dividend. The Group is in excellent shape to benefit from an improving global economy in 2014 whilst leveraging its unique portfolio of services and strong brand to increase further its market share,” he concluded.

In trading today, the company’s share price rose by +4.4% to £0.96, an increase of +75.1% compared with a year ago. Based on its current share price, the company has a market value of £69.4 million. 

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