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UK – Harvey Nash results to be “ahead of expectations”

17 February 2012

The professional services group Harvey Nash (HVN:LSE) today announced that its results for the full year ended 31 January 2012 are expected to be ahead of expectations. The firm also reported that it intends to  recommend an increase in its final dividend of circa 10%.

The company stated that unaudited results for the full year amount to a total revenue of circa £532 million, with a gross profit of circa £78 million and profit before tax of about £8.2 million, up +31% on the previous year.

“Skills shortages in niche markets, and the fast growing digital and mobile markets in particular, continued to drive demand for technology professionals. However, the general decline in business confidence in Europe and the UK has impacted the executive appointment market. Whilst a general softening of demand for permanent recruitment was evident across the world, technology outsourcing and freelance contracting continued to be robust in the second half and increases in the productivity of consultants working on client projects, particularly in December and January, exceeded our expectations,” the company stated in a press release.

However, the firm was very aware of “ongoing economic uncertainty about the Eurozone” and expects clients to be cautious although the outlook for freelance contracting remains encouraging with little evidence of a slowing of temporary recruitment. However, should executive recruitment globally continue the trend seen in the fourth quarter of calendar year 2011 then this is likely to result in profits being lower than the previous year, excluding the effect of the relocation and fresh investment in Asia.

The firm will announce preliminary results for the year ended 31 January 2012 on 30 April 2012.

Harvey Nash Group is a professional recruitment and outsourcing consultancy that operates in three segments: UK and Ireland, Rest of Europe and United States, whereby Asia Pacific is included in the UK and Ireland. The firm’s professional recruitment includes technology, finance and engineering recruitment.

In Staffing Industry Analysts’ ranking of the top recruitment firms in the UK, Harvey Nash ranked 26th.

In early trading this morning, company shares went up +4.76% at 68.75 GBP, which is +11% above the 52-week low of 48.04 GBP set on 3 January 2012. This values the company at £48.20 million.

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