Pre-close Trading Update and Notice of Results - February 2017
3 March 2017
Harvey Nash, the global executive recruitment and professional services group, issues the following trading update in advance of the Group's final results for the full year ended 31 January 2017 (the "Period"), which will be announced on 27 April 2017.
The Board expects to report adjusted pre-tax profit(1) for the year ended 31 January 2017 in line with market expectations. Overall gross profit increased by 8% (-1% on a constant currency basis(2)). While growth was held back in the UK & Ireland by Brexit uncertainty gross profit was up by 18% in Mainland Europe (4% on a constant currency basis(2)). The constant currency(2) decline in “Rest of World” was due to challenging market conditions in Hong Kong while in “Offshore Services” it was due to increased costs in Vietnam as a result of the depreciation in the value of sterling during the year.
Net cash of £5.5m at the year-end was achieved due to tight control of working capital. The Group has no term debt.
Albert Ellis, Chief Executive Officer, said:
“The Group has delivered a resilient trading performance despite the significant uncertainty created by the referendum. Mainland Europe, which accounts for 40% of total gross profit, continued to make satisfactory progress. Cash flow has materially exceeded expectations with the year ending in a positive net cash position, some £5 million higher than 31 January 2016.”
- Adjusted profit is before a provision of £0.5m relating to non-recovery of prior year receivables in the United States.
- Constant currency is calculated by re-translating current year figures at prior year rates.
Albert Ellis (CEO) and Richard Ashcroft (CFO)
Tel: 020 7333 2635
Fern Duncan / Cat Valentine
Tel: 020 7796 4133