Harvey Nash confident as robust demand continues

Shares of recruitment and IT outsourcing services group Harvey Nash firmed after it posted improved revenues and gross profit despite challenging trading conditions.

Adjusted profit before tax increased to £4.2m for the six months ended July 31st 2012 from £3.8m a year earlier. Revenue gained 15% to £292.5m for the period after progress across all of its geographical areas.

US operating profit soared 42%, UK & Ireland operating profit rose 15% while operating profit in mainland Europe increased 18%.

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Commenting on the results, Chief Executive Officer Albert Ellis, said: "Given the uncertainty in the market, this has been a robust first half performance, demonstrating the value of a diversified geographical footprint and a broad portfolio of services to offer clients."

"The general trend across our markets is for a shift away from permanent employment in favour of temporary and contract recruitment, to which we have been swift to adapt. We are also continuing to focus on fast growing technology markets, in particular the digital, mobile and social media sectors. The Board is confident that the group remains on track to deliver full year results in line with expectations."

An interim dividend of 1.125p per share has been offered, up from 1.025p in 2011.

CJ