Chief Executive Officer, Albert Ellis commented:
“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.”
Harvey Nash Group plc (LON: HVN), the global technology recruitment and outsourcing group today announced its unaudited interim results for the six month period ended 31 July 2018.
Highlights
· Transformation programme now substantially complete, delivering against strategy
· Robust UK performance in weaker market
· Continued growth in Europe particularly in the Benelux
· Strong results from Vietnam based IT outsourcing business
· Recent acquisitions trading in line with expectations
· Gross profit up 7.2%, 11.1% on a like-for-like basis
· Profit before tax up 19.2%, up 52.0% before non-recurring items,
· EPS up 22.6%, up 48.7% before non-recurring items
· Interim dividend of 1.75p per share, up 6.5%
· Net debt up to £21.5m (2017: £10.0m) reflecting expanding working capital
Financial Highlights |
July 2018 |
July 2017 |
Change |
Constant Currency |
|
|
Revenue^ |
292,186 |
254,462 |
14.8% |
15.3% |
|
|
Gross profit |
51,680 |
48,213 |
7.2% |
8.7% |
||
Operating profit before non-recurring items |
6,531 |
4,225 |
54.6% |
47.7% |
||
Non-recurring items* |
(739) |
467 |
(258.4%) |
|
|
|
Operating profit |
5,792 |
4,692 |
23.4% |
|
|
|
Profit before tax before non-recurring items |
6,003 |
3,951 |
52.0% |
44.6% |
|
|
Profit before tax |
5,264 |
4,418 |
19.2% |
|
|
|
EPS before non-recurring items |
6.24p |
4.19p |
48.7% |
|
|
|
EPS |
5.48p |
4.47p |
22.6% |
|
|
|
Cash outflow from operating activities |
(5,858) |
(7,594) |
(22.9%) |
|
|
|
Net Borrowings |
21,540 |
10,025 |
114.9% |
|
|
|
^ The adoption of IFRS 15 resulted in a reduction in reported revenue, where the Group operates as an agent, under the criteria of this new standard. The comparative revenue figure has been restated. There is no impact on gross profit. See note 12 for further details.
* Non-recurring items mainly comprise the cost of the Group transformation programme offset by a release of aged accrued liabilities.