Recruiter Harvey Nash bucks Brexit fears as profits rise in first half
Tech recruiter Harvey Nash reported rising profits in its interim results this morning, despite the sector suffering from uncertainty surrounding Brexit negotiations in the UK.
Despite the decent results, shares in the company were trading almost one per cent lower early on Tuesday.
The figures
Gross profit rose 7.2 per cent to £51.7m, while profit before tax got a 19.2 per cent boost to stand at £5.2m.
Revenues grew 14.8 per cent in the six months up to 31 July 2018, to stand at £292.2m.
Investors were also given a dividend boost, as it increased 6.5 per cent up to 1.75p per share.
Why it's interesting
Harvey Nash, a recruitment consultancy specialising in IT outsourcing, has turned in a strong set of results, in spite of Brexit concerns taking their toll on the wider industry.
A Linkedin UK survey earlier this year showed almost half of recruiters thought Brexit had made Britain less attractive to applicants, while 96 per cent of recruitment and HR workers said Brexit had impacted their hiring strategies.
Harvey Nash has also been helped by recent news of its £100m acquisition by The Power of Talent, an entity controlled by funds managed by Dbay Advisors.
What Harvey Nash said
Harvey Nash chief executive Albert Ellis said:
I am pleased that in a challenging market our UK business has increased revenues and delivered a robust financial performance despite declines reported across the recruitment sector in light of uncertainty surrounding the negotiations between the European Union and the UK.
The group’s businesses in Mainland Europe performed well whilst results from the rest of the world were mixed, with a decline in US revenue set against a strong performance from our Vietnam based IT outsourcing business. Overall, trading remains in line with the Board’s expectations for the full year.
Read more: New PwC recruits to set own hours under flexible working scheme