Harvey Nash issues trading update
Gross profit from permanent recruitment was 16% higher, gross profit from contracting was 9% higher and, due to the previously reported reduction in our outsourcing project pipeline in Germany as a result of the slowdown in investment in the mobile telecoms market, gross profit from outsourcing was 2% lower.
UK & Ireland
Overall gross profit in the UK & Ireland increased by 10% compared to the same period last year. The main driver for this growth was gross profit from permanent recruitment which increased by 15%. Gross profit from outsourcing grew by 23%.
In mainland Europe gross profit increased by 3% compared to the same period last year.Gross profit from contracting increased by 16%, more than offsetting a 27% decline in gross profit from outsourcing for the reason referred to above, and a 2% decline in gross profit from permanent recruitment.
Our Nordics business was stable. Gross profit, which is derived mainly from permanent recruitment, increased by 2% compared to the same period last year.
In the United States gross profit increased by 18% compared to the same period last year. The main driver for growth was permanent recruitment, which increased by 43%. Gross profit from outsourcing grew by 21%.
In Asia Pacific gross profit increased by 58% compared to the same period last year. The main driver for this growth was permanent recruitment in Hong Kong.
Full Year ended 31 January 2014
Revenue was 17% higher than the previous year, while gross profit was 7% higher. Gross profit from permanent recruitment was 10% higher, gross profit from contracting was 8% higher and gross profit from outsourcing was 5% lower.
Notwithstanding the increase in turnover compared with the preceding 12 months, strong trading cash flows and tight control of working capital have resulted in a positive net cash position as at 31 January 2014 of circa £4 million, compared with £5 million at the prior year end.