19th Jun 2009 07:00
HARVEY NASH GROUP PLC
('Harvey Nash' or the 'Group')
Interim Management Statement
The Board of Harvey Nash is issuing the first Interim Management Statement for the financial year ending 31 January 2010.
This covers the period from 1 February 2009 to 19 June 2009 and there have been no material events or transactions in the period from 1 February 2008 to 19 June 2009 other than as detailed in this statement.
Current trading
For the year ended 31 January 2009, the Group announced excellent financial results with turnover up 32%, gross profit up 18% and profit before tax up 25%.
The Board is pleased to confirm that current trading was in line with expectations for the first quarter ended 30 April 2009. The Group increased its revenues by 3% when compared to the prior year. As we stated in February, and as has been widely reported, the challenging economic environment has had a significant impact on demand for permanent recruitment services and this led the Board to review its revenue and profit expectations for the current year at that time. Whilst, as foreseen, demand for permanent hires has continued to soften this has been partially offset by favourable demand for outsourcing and offshoring. We have made limited reductions to the cost base without damaging the Group's revenue earning potential.
Financial position
The Group continues to enjoy substantial headroom in relation to its overall banking arrangements (£30m) for working capital, renewed in March 2009 with the notice term extended to 1 year. The Group has no term debt following the early repayment of the balance of its term loan on 31 January 2008.
On 18 December 2008, the Group acquired 75% of an Executive Leadership Consultancy based in Poland. In March 2009 contingent consideration of £30k was paid in cash. No further consideration is payable during the financial year ending 31 January 2010 in relation to any of the Group's recent acquisitions.
Dividends
Subject to approval at the Annual General Meeting on 3 July 2009, and already announced, the Group will pay a final dividend on 17 July 2009 for the year ended 31 January 2009 of 1.2p per share, an increase of 9% (2008: 1.1p) to shareholders on the register as at 3 July 2009.
The total dividend for the year of 2.0p per share (2008:1.8p) represents an increase of 11%.
Summary
Although the market for permanent recruitment remains weak and visibility is very limited, the Board remains confident that Harvey Nash's market leading businesses will continue to benefit from strong market share gains and the increased demand for offshore and outsourcing services and is well placed to benefit from the upturn when it comes.
19 June 2009 ENQUIRIES:
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Harvey Nash |
Tel: 020 7333 2635 |
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Albert Ellis, Chief Executive Officer |
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Richard Ashcroft, Group Finance Director |
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College Hill |
Tel: 020 7457 2020 |
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Mark Garraway, Gareth David |
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