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Harvey Nash Group (HVN)


Wednesday 06 June, 2018

Harvey Nash Group

Trading Update

RNS Number : 4156Q
Harvey Nash Group PLC
06 June 2018


6 June 2018



Trading Update

Strong growth has continued into the current year


Harvey Nash, the global technology recruitment and outsourcing group, is pleased to announce the following trading update in advance of its Capital Markets Day event today.


As stated in the preliminary results announcement on 27 April 2018, we are encouraged by the strong trading momentum at the beginning of the current financial year. This is reflected in the unaudited results with gross profit for the quarter ended 30 April 2018 up 7% overall on the comparable period last year*.


UK & Ireland Gross Profit is up 20% year on year, with robust growth in the volume of contractors year on year, despite uncertainty in relation to the ongoing Brexit negotiations. The Benelux continues to be a key driver of organic growth in Europe with 13% growth led by strong demand for contract recruitment and managed services. The Nordics was up 7% and in Central Europe gross profit was up 5%, driven mainly by Germany. In the Rest of World, Gross Profit was 23% lower largely as a result of an exceptional executive search quarter and higher solutions revenues in the prior year in the USA.

In the current financial year we completed the acquisition of eMenKa on 15 May 2018 which has significantly strengthened our position in Belgium in the niche Microsoft skills market. The demand for specialist technology skills remains high as a result of an acute skills shortage and as companies are increasing investment in technology and systems.


Albert Ellis, Chief Executive Officer, said:


"I am very pleased to report that the strong organic growth reported in the second half of last year has continued into the current year and the first quarter is tracking ahead of budget. The Group has a clear growth strategy, and with the additional contribution from the annualised effect of the acquired businesses and of the transformation programme, we are confident of continuing to make significant progress in 2018."



Quarter ended 30 April 2018


Gross profit growth*

% of Group




UK & Ireland



Europe: Nordics



Europe: Benelux



Central Europe



Rest of World










* Comparative results are stated on a like-for-like basis, excluding the impact of offices closed during the prior financial year.



KPMG Harvey Nash CIO Survey 2018


According to figures from the KPMG Harvey Nash CIO Survey 2018, published this morning, the proportion of companies reporting budget increases are at a record since 2005 with 84% stating that budgets are the same or increasing compared to only 16% reporting decreases. The proportion of companies reporting positive intention to hire additional headcount was also up at 47%, compared to 44% over the last three years.


Capital Markets Day


The Capital Markets Day event for investors and analysts today will highlight the Group's strategic progress over the past 12 months and will include presentations from the wider management team.


A copy of the presentation materials will be made available later today at presentations will not contain any material, non-public information and access to the event will not be possible without pre-registration.




Harvey Nash

Albert Ellis (CEO)

Mark Garratt (CFO)

020 7333 2635


Panmure Gordon (Nominated Adviser & Broker)

Ben Thorne

Erik Anderson

Andrew Potts   

020 7886 2500   

Hudson Sandler (Financial PR)

Michael Sandler

Hattie O'Reilly

020 7796 4133 or [email protected]


This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) no 596/2014.


Notes to editors

The Harvey Nash Group is a global technology recruitment and IT outsourcing business, with a focus on technology and digital recruitment. Our unique portfolio of services, executive search, technology recruitment and IT outsourcing, enables us to engage with clients at every stage of the business cycle. Our relationship-based model underpins the delivery of resilient financial returns and supports sustainable returns to shareholders.




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