25th Apr 2014 10:24
LONDON (Alliance News) - Harvey Nash Group PLC Friday said pretax profit declined in its last financial year amid costs relating the restructuring of its European operations, but reported an increase in revenue after a strong second-half, particularly in fourth-quarter trading which has continued into the new financial year.
In a statement, the recruitment group said it made a GBP6.4 million pretax profit in the financial year ended January 31, compared with GBP7.9 million a year earlier. Revenue increased to GBP697.3 million, from GBP594.7 million, while administrative expenses increased to GBP81.4 million from GBP74.3 million.
Non-recurring items, as they are booked on the income statement, increased to GBP2.6 million from GBP813,000.
In the most recently ended financial year, non-recurring items related to the restructuring of Harvey Nash's European operations, while a year earlier they were related to the relocation of the group's London headquarters and acquisition costs.
On an adjusted basis, which excluded non-recurring costs, Harvey Nash reported a GBP300,000 increase in pretax profit, to GBP9.0 million.
"This is a strong set of financial results, which reflect the significant market share gains we have made during the year. Momentum gathered pace in demand for permanent recruitment in the final quarter, particularly in the USA, UK and Nordics, whilst a number of contract management wins during the year boosted revenue. Our investment in Asia is also beginning to show tangible results," Albert Ellis, chief executive, said in a statement.
"The significant upturn in trading which the group enjoyed in the final quarter has continued into the new financial year and I am confident that Harvey Nash is well positioned to capitalise further on the improving market conditions," Ellis added.
Chairman Julie Baddeley said the demand for recruitment services is improving in all Harvey Nash's key markets.
"Permanent recruitment has strengthened in the USA, UK & Ireland, with signs of improvement in the Nordics and Asia Pacific. The pipeline of opportunities for offshore services is stable and demand for contract recruitment remains robust particularly in mainland Europe," Baddeley said.
Harvey Nash increased its dividend to 3.21 pence from 2.92 pence.
Harvey Nash shares were Friday quoted at 110.81 pence, down 7.7%.
By Samuel Agini; [email protected]; @samuelagini
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