Harvey Nash to boost divi payment after strong year

Harvey Nash, a global professional recruitment and outsourcing group, cheered investors on Wednesday morning with the news its full year results for the period ended January 31st are set to be slightly ahead of recently upgraded expectations, prompting a 10 per cent increase in its final dividend payment.

Harvey Nash, a global professional recruitment and outsourcing group, cheered investors on Wednesday morning with the news its full year results for the period ended January 31st are set to be slightly ahead of recently upgraded expectations, prompting a 10 per cent increase in its final dividend payment.

Total revenue will be in the region of £590m, compared to £533m the previous year, with gross profit of around £80m (2012: £78.5m), and profit before tax of around £8.6m, £0.1m higher than that achieved the previous year.

In a pre-close trading update, the company made the following statement: "Demand for highly skilled technology professionals has created skills shortages in the mobile and digital segments of the technology market. Clients, particularly in Europe, have continued to favour flexible contract and temporary hiring over permanent and executive recruitment.

"However, there has been continued demand for outsourcing and offshoring. With its broad portfolio of services and leading market positions, the group has been very well placed to capitalise on these trends during the year.

"The group has also benefitted from significantly increased market share in the UK and Ireland, temporary and contract recruitment in the Benelux and Germany, and a steadily improving result from Asia, where investment in two additional offices in Hong Kong and Sydney was made during the course of 2012."

Harvey Nash also said the integration of the Talent IT business in Belgium, acquired on May 31st 2012, has gone well and results for the year have met expectations.

During the period the company returned to a positive net cash position of around £4.0m. The group plans to pay a final dividend of 1.795p per share (2012: 1.635p), resulting in an increase of 10% in the total dividend per share for the year (2012: 2.66p).

The company has also completed an agreement with The Royal Bank of Scotland to raise the total amount of facilities and headroom to around £52m (previously around £40m) with immediate effect to fund working capital as required when recruitment markets recover.

The share price rose 3.76% to 69p by 09:16.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021