Harvey Nash publishes interim management statement
Harvey Nash has today issued its interim management statement covering the period from 1st August 2013 to 28th November 2013.
The board has reported that the group is trading in line with expectations with continued momentum, particularly in the recruitment market, beginning to feed through to the group's results.
Revenue for the quarter ended 31st October 2013 increased by 19% compared to the same period last year, while gross profit and operating profit both increased by 6%. Gross profit from permanent recruitment for the quarter ended 31st October 2013 was 11% higher than the previous year, gross profit from contracting was 9% higher and, for the reasons explained in the Interim Report, gross profit from outsourcing was 13% lower. There were no exceptional or non-recurring items during the period.
For the nine months ended 31st October 2013, revenue was 15% higher than the equivalent period in the previous year, gross profit was 6% higher and operating profit was unchanged. This represents significant progress over the course of the year to date. Gross profit from permanent recruitment for the nine months ended 31st October 2013 was 8% higher than the previous year, gross profit from contracting was 11% higher and gross profit from outsourcing was 12% lower.
An interim dividend of 1.238p per share, up 10% on the prior year interim dividend (2012:1.125p) in respect of the six months ended 31st July 2013, was paid on 22nd November.
Strong trading cash flow and tight control of working capital have resulted in a much improved financial position compared to the comparable period in the prior year. The Group has no term debt and continues to enjoy substantial headroom in relation to its banking facilities.
Overall, the Group's performance has continued to improve in the third quarter, increasing revenues and profits. The Group is well positioned to take further advantage of improvements in the markets in which it operates. The Board remains confident of delivering results for the financial year ending 31st January 2014 in line with its current expectations.
Albert Ellis, chief executive officer of Harvey Nash, commented, "Recovery appears to be taking hold in the USA and the UK with the likelihood that Europe will follow. Whilst clients continue to favour temporary and contract recruitment there are some positive signs of an improvement in permanent revenue. Demand for offshore services is stable although visibility continues to be limited in Europe.
"Our successful strategy for growth during the downturn has resulted in improved revenues and profits whilst strong cash generation has supported a 10% increase in the interim dividend.
"The Group is in excellent shape to benefit from an improving global economy in 2014 whilst leveraging its unique portfolio of services and strong brand to increase further its market share."
There have been no material events or transactions in the period other than those detailed in this statement. The Group's financial year ends on 31st January 2014