HARVEY NASH GROUP PLC
HARVEY NASH GROUP PLC
('Harvey Nash' or the 'Group')
Interim Management Statement
The Board of Harvey Nash is issuing its first Interim Management Statement for the financial year ending 31 January 2012 covering the period from 1 February 2011 to 30 May 2011. There have been no material events or transactions in the period other than those detailed in this statement.
The Board is delighted to report that the Group performed ahead of budget during the first quarter ended 30 April 2011 with revenue up by 23% compared to the same period last year and with gross profit up by 22% and profit before tax up by 32%.
As expected and reported in the Group's full year results on 28 April 2011, mainland Europe reported the strongest growth, the US remained robust, whilst UK growth rates were modest. We therefore continue to be confident that growth from the US and Europe will drive further progress in the next quarter.
Harvey Nash continues to enjoy substantial headroom in relation to its overall banking facility of circa 40m, and the Group has no term debt.
Subject to approval at the Annual General Meeting on 30th June 2011, and as previously announced, the Group proposes to pay a final dividend on 15 July 2011 for the year ended 31 January 2011 of 1.48p per share, an increase of 10% (2010: 1.35p) to shareholders on the register as at 24 June 2011.
The total dividend for the year of 2.42p per share represents an increase of 10% on 2009/10 (2.2p).
Summary and Outlook
The strong first quarter results for the year ending 31 January 2012 build on the resilience shown by Harvey Nash during the recession and the return to growth during the previous financial year across all the markets in which the business operates.
We are confident of continuing growth, albeit against a strong comparative period, particularly in our US and European markets, which will enable us to make further progress in the next quarter.
Albert Ellis, Chief Executive of Harvey Nash, said:
"Our unique strength lies in providing a broad portfolio of professional recruitment, executive headhunting and leadership services to our clients, in highly skilled sectors. Our growth in profits and revenues, strong cash generation and ability to pay a healthy dividend are all the result of the market share gains that we achieved during the recession. The Board is confident that this momentum will continue both in the current year and in the future."