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

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