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Trading Update

27th Feb 2009 07:00

RNS Number : 9807N
Harvey Nash Group PLC
27 February 2009
 



HARVEY NASH GROUP PLC

("Harvey Nash" or "the Group")

Trading Update

Harvey Nash will announce results for year ended 31 January 2009 on 29 April 2009 and is issuing this trading update ahead of entering the Close Period.

Trading during the second half remained strong underpinned by the Group’s broad portfolio of services and geographic diversity. In particular, the outsourcing and offshoring business saw excellent growth. As expected, growth in the UK and Ireland was lower than in mainland Europe, which reported another strong year. The Board was also pleased with the performance in the USA, where profits have almost doubled when compared to the prior year, mainly as a result of its successful IT outsourcing strategy.

 

Accordingly, the Board expects to announce revenues increased by approximately 30% and profits before tax by some 25%, in line with its expectations. 

As has been widely reported, the challenging economic environment has had a significant impact in demand for permanent recruitment services, which accounts for 38% of the Group's revenues during the year. 

Whilst it is early in the new financial year to January 2010, looking forward, the Board believes that in the absence of an upturn in demand for permanent hiring, it has been prudent to review its revenue and profit expectations for the current year.

This will not materially affect the Group's expectations in relation to its cash resources. Strong operating cash flow during the year resulted in a higher than expected net cash position of just under £4m at the year end. All of the Group's recent acquisitions have met or exceeded their targets during last year and all relevant deferred payments for last year were settled by the year end. 

Therefore, the Board remains confident that going forward, there is ample dividend cover to continue with the current dividend policy.

Continuing the Group's tight control of cost and working capital, the Board's approach is to maintain an appropriate level of headcount to reflect current demand, without sacrificing future opportunities to drive growth and value when the upturn comes. 

The Group will announce the detailed results for the year ended 31 January 2009 on 29 April 2009. There will be an analyst presentation that morning at 09.30 at the offices of College Hill*.

 

Enquiries

Harvey Nash

Tel: 020 7333 0033

Albert Ellis, Chief Executive

Richard Ashcroft, Finance Director

College Hill

Tel: 020 7457 2020

Mark Garraway

* The Registry, Royal Mint Court, London, EC3N 4QN

This information is provided by RNS
The company news service from the London Stock Exchange
 
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