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HARVEY NASH GROUP PLC Interim Management Statement

HARVEY NASH GROUP PLC Interim Management Statement

The Board of Harvey Nash is issuing an Interim Management Statement covering the period from 1 August 2010 to 25 November 2010. There have been no material events or transactions in the period other than as detailed in this statement. The Groups financial year concludes on 31 January 2011.


The Board is pleased to confirm that the progress of the first half continued into the third quarter ended 31 October 2010. Given the relatively strong 2009 comparatives, underlining the Groups resilience during the downturn, the Board is delighted to report that both the Groups revenue and gross profit for the quarter increased 24% compared to the same period last year with profit before tax increasing accordingly.

Growth has been strongest in the USA where, for the first time in 2010, client demand for executive search and permanent recruitment increased. The UK is also performing well whilst recovery in Europe, which has lagged the UK and US, is now gaining pace particularly in the Nordics, Belgium and Germany.

Financial position

Strong cash generation has continued throughout the third quarter, despite increased working capital requirements driven by higher levels of trading, adding to the headroom in relation to the Groups overall banking arrangements. The Group has no term debt.


The Group will pay an interim dividend, in respect of the six months ended 31 July 2010, today (26 November 2010) to shareholders on the register at 29 October 2010, of 0.935p per share (2009: 0.850p), an increase of 10%.

Acquisition and expansion

The Groups recent acquisition in Norway, previously announced on 29 April 2010 is on track and the new offices in Helsinki and Houston which were opened in the first half of 2010, are both performing well.

Whilst the Board acknowledges the continued uncertainty of the global economic outlook, we are encouraged by the growth in revenue and gross profit seen in the year-to-date, and particularly in the quarter ended 31 October 2010. This gives the Board confidence that the Group will continue to make good progress and that the result for the year is likely to fall within the top end of current market estimates.


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