28th Apr 2016 08:00
LONDON (Alliance News) - Recruiter Harvey Nash Group PLC on Thursday said pretax profit grew in the financial year to the end of January but said its UK business has suffered from uncertainty caused by the upcoming referendum on the country's European Union membership.
Pretax profit for the year to January 31 grew 7.0% year-on-year to GBP9.1 million from GBP8.5 million the year before, Harvey Nash said.
Gross profit grew to GBP90.3 million from GBP84.9 million, up 6.0%, but revenue was broadly flat at GBP676.5 million against GBP677.9 million.
The company said it saw good growth in the US market, where gross profit rose 25% year-on-year, but while UK contracting performed well, permanent placements were weaker year-on-year. Harvey Nash said the UK market had been particularly weak in the fourth quarter, hit by a slowing economy and reluctance among companies to hire staff ahead of the Brexit referendum in June.
Germany and Sweden also proved strong in the year, though both were held back by weak currencies.
Harvey Nash said it will pay a final dividend of 2.36 pence per share, up from 2.171p a year earlier and taking its total payout to 3.850p from 3.531p.
"The group has delivered another year of robust underlying growth in gross profit and operating profit while cashflow was ahead of expectations. The group continues to win market share and invest in headcount in key locations, focusing on driving profitable growth, whilst remaining flexible and agile," said Chief Executive Albert Ellis.
Harvey Nash shares were down 5.5% to 73.45p.
By Sam Unsted; [email protected]; @SamUAtAlliance
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