Harvey Nash buoyed by UK and Nordic markets

Recruitment consultancy and IT outsourcing service provider Harvey Nash revealed a robust set of annual results amid strong demand from its UK and Nordic markets.

The group said it gained significant market share in the Nordics and the UK, with robust demand for flexible labour continuing despite uncertainty in the euro zone.

UK & Ireland exceeded expectations with operating profit up 19%, while Germany and the Nordic region underpinned a 59% rise in operating profit from Europe.

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The group, which operates from 39 offices in the US, Europe and Asia, said total revenue for the year ended 31 January 2012 rose to £533m from £422m the year before while pre-tax profit rose 35% to £8.5m. Gross profit climbed 15% to £78.5m and operating profit surged 41% to £9m.

Commenting on current trading CEO Albert Ellis said, "We are seeing the benefits of our focus both on high growth technology markets and on the robust economies of Northern Europe."

"We made significant market share gains which delivered an increase in operating profit of 19% in the UK despite the widely reported weakness in the recruitment market and a 59% increase in operating profit in Europe against a background of uncertainty over the euro zone. All of this growth is organic."

The group said current trading is in line with company expectations and it looks forward to expanding its geographical footprint in Asia in the coming year.

Harvey Nash has recommended a 10% increase in final dividend to 1.635p per share.

CJ