Harvey Nash Group PLC Trading Update (4156Q)

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RNS Number : 4156Q

Harvey Nash Group PLC

06 June 2018

6 June 2018

HARVEY NASH GROUP PLC

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 
 Geography          Gross profit growth*   % of Group 
                   ---------------------  ----------- 
 
 UK & Ireland                       +20%          44% 
                   ---------------------  ----------- 
 Europe: Nordics                     +7%          15% 
                   ---------------------  ----------- 
 Europe: Benelux                    +13%          20% 
                   ---------------------  ----------- 
 Central Europe                      +5%           7% 
                   ---------------------  ----------- 
 Rest of World                      -23%          14% 
                   ---------------------  ----------- 
 
 Total                               +7%         100% 
                   ---------------------  ----------- 
 

* 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 https://www.harveynash.com/group/investors/. The presentations will not contain any material, non-public information and access to the event will not be possible without pre-registration.

Enquiries

 
                              Albert Ellis (CEO) 
 Harvey Nash                   Mark Garratt (CFO)    020 7333 2635 
                              Ben Thorne 
 Panmure Gordon (Nominated     Erik Anderson 
  Adviser & Broker)            Andrew Potts          020 7886 2500 
 Hudson Sandler (Financial    Michael Sandler        020 7796 4133 
  PR)                          Hattie O'Reilly        or [e-mail] 
 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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June 06, 2018 02:00 ET (06:00 GMT)