5th Jun 2014 11:31
LONDON (Alliance News) - Harvey Nash Group PLC Thursday said its performance in the first-quarter has been in line with management expectations, with operating profit on the rise due to strong demand for recruitment services in its key markets and good activity, although some markets remain weak.
Harvey Nash, whose financial year ends on January 31, said that on a like-for-like basis first-quarter operating profit increased by 12%, driven by a corresponding increase in revenue.
"Demand for recruitment services continues to improve in our key markets and activity levels remain elevated although there is variation in the pace of that improvement across the markets in which the group operates," the company said in a statement.
The executive recruitment and professional services group noted strong demand for permanent recruitment in the US, UK and Hong Kong, along with signs of continuing signs of improvement in Sweden and Finland, but weakness in Norway. Weak demand for permanent recruitment in mainland Europe was offset by "robust" demand for contractor services. Meanwhile, Harvey Nash said demand for offshore services in the US is picking up, offsetting lower demand for contracting as a result of the swing to permanent recruitment.
On April 25, Harvey Nash reported a drop in full-year pretax profit, to GBP6.4 million from GBP7.9 million a year earlier, but said that strong second-half momentum, particularly due to a pick-up in demand for permanent recruitment in the final quarter, had continued into the new financial year. Harvey Nash Thursday confirmed that that momentum has continued.
The group added that it has higher levels of net available cash than at the equivalent point of last year due to "substantial headroom" in its banking facilities, which total GBP52 million, and a slight improvement in debtor days since the end of its last financial year.
Harvey Nash shares were Thursday quoted at 118.67 pence, up 2.7%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Harvey Nash Group