Harvey Nash's annual results exceed expectations

Professional recruitment consultancy Harvey Nash reported an increase in annual revenue that exceeded expectations.

Professional recruitment consultancy Harvey Nash reported an increase in annual revenue that exceeded expectations.

Revenue for the year ended January 31st 2013 came to £594.7m, a 12% increase from the previous year.

Profit before tax, however, fell 7.0% to £7.9m reflecting costs related to the relocation of the group's London headquarters and acquisition.

Non-recurring costs of £0.8m were incurred, comprising £0.6m property charges in relocating the London office and £0.2m in legal fees relating to acquisition of the Talent-IT business in Belgium.

The group also invested in three new offices in Hong Kong, Sydney and Ghent.

Operating profit, adjusted for non-recurring items, increased by 5.0% to £9.4m despite the investment in new offices.

Excluding the investment, operating profit increased 10% with the conversion margin consistent at 11%.

Cash flow from operating activities was 107% higher at £9.6m following a reduction in working capital which fell from £6.7m in the prior year to £1.3m this year.

"I am delighted to report another excellent set of financial results for the year, which have exceeded expectations," said Chief Executive Officer, Albert Ellis.

"As one of Europe's leading technology recruitment companies, we have focused on supporting our clients' investment in new digital and mobile growth strategies by helping them find talent in these areas, in which there is an acute skills shortage."

Chairman Ian Kirkpatrick said the outlook for temporary recruitment and offshore projects remains encouraging but the firm remains cautious in light of weak demand in Europe.

The group expects results to pick up in the second half as market conditions improve.

RD

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020