10th Aug 2009 07:00
HARVEY NASH GROUP PLC
('Harvey Nash' or the 'Group')
Trading Update
Harvey Nash will announce its interim results on 30 September 2009.
The Board is pleased to confirm that trading for the six months to 31 July 2009 has remained broadly in line with expectations, underpinned by the Group's broad portfolio of services.
In February 2009, the Board reviewed its revenue and profit expectations for the current year in view of the challenging economic environment. As anticipated, the decline in demand for recruitment services has been partially offset by the performance of our IT outsourcing businesses. The strength of the portfolio of services, combined with actions taken to reduce the cost base, has ensured a resilient performance for the period.
Revenue for the six month period to 31 July 2009 is in line with the previous year while gross profit for the same period has recorded only a modest decline of 5%. Trading cash flow has been strong, and operating profits are expected to exceed £2.0m for the period.
Dividends
Following approval at the Annual General Meeting on 2 July 2009, the Group paid 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). The total dividend for the year of 2.0p per share (2008:1.8p) represents an increase of 11%.
Financial position
The Group has a strong balance sheet and no long term debt. Looking ahead to the recovery, the substantial facilities of circa £29m, in relation to its working capital, position the Group well to fund growth when the upturn comes.
Summary
The Group is trading resiliently in the current difficult environment, although visibility remains limited. With a focus on cash management and tight control of costs, the Board is confident that Harvey Nash's market leading businesses will continue to benefit from strong market share gains and its unique portfolio of services.
10 August 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 Adam Aljewicz |
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