Harvey Nash, the global recruitment and professional services group, announces its preliminary results for the year ended 31 January 2016, delivering growth in key service lines.
- Growth of 9% in gross profit and adjusted operating profit on a constant currency basis
- Adjusted earnings per share up 10% on a constant currency basis
- Final dividend up 8.7% to 2.360p (2015: 2.171p) bringing the total dividend for the year to 3.850p (2015: 3.531p)
- Trading cash flow from operating activities up 73%
- Positive net cash position at year end on improved debtor days
- The loss from discontinued operations was £14.4m, resulting in a £7.6m statutory loss for the year and a loss per share of 10.5p.
Regional Highlights (2)
- Strong growth in the USA with gross profit up 25% and operating profit up 56%
- Good growth in UK contracting with a weaker result in permanent placements
- Germany & Sweden experienced strong growth although reported results were held back by currency headwinds
- Record performance from Talent IT, our Belgian acquisition
- Strategic review concluded: Disposal of non-core loss-making German outsourcing business completed in Dec 2015
- Asia: Revenue increased by 77% and new Singapore office opened
Albert Ellis, Chief Executive Officer of Harvey Nash, commented:
"The Group has delivered another year of robust underlying growth in gross profit and operating profit while cashflow was ahead of expectations.
Results were excellent in the USA where a booming technology sector and an acute skills shortage led to record revenues and operating profits. Revenue increased 77% in Asia, driven in particular by outstanding results in Vietnam and Japan.
In Europe, currency headwinds held back results and in the UK the final quarter was affected by weaker business confidence, a slowing economy and fears over Brexit.
The Group continues to win market share and invest in headcount in key locations, focusing on driving profitable growth, whilst remaining flexible and agile."
Albert Ellis (CEO) and Richard Ashcroft (CFO)
Tel: 020 7333 2635
Michael Sandler/Fern Duncan
Tel: 020 7796 4133
1 2015 results have been represented to exclude the effect of discontinued operations.
2 From continuing operations before non-recurring costs. FY16 non-recurring costs predominantly relate to excess consideration payable on settlement of Talent IT earn out. FY15 costs relate to acquisition and the strategic review and restructuring of European operations.