Harvey Nash focussing on tech talent as it prepares AIM move

Recruitment and professional services company Harvey Nash Group was set to hold its annual general meeting on Thursday, with chairman Julie Baddeley preparing to tell investors of the firm’s progress with its new technology-focussed talent strategy.

The FTSE Fledgling company had set out its strategy of focusing on technology and digital talent in its preliminary results announcement on 27 April.

“This, underpinned by the group's robust financial position, puts us in a strong position to generate growth, both organically and through carefully selected acquisitions,” Baddeley was set to say on Thursday.

“A number of acquisitions are being actively considered, each of which would be subject to stringent financial hurdles, and the board is optimistic of being in a position to announce one or more transactions in the current financial year.”

Baddeley said the group was performing in line with management expectations for the financial year so far, and ahead of the prior year, despite the geopolitical headwinds including the UK general election.

"The immediate outlook is positive, with the key measure of contractor work in progress being comfortably ahead of last year.

“Following the appointment of Mark Garratt as group finance director earlier in the year, the executive directors have been undertaking a thorough review of the group's operations and cost base.”

As a result, Baddeley said the company was in the process of implementing a transformation programme, including actions to streamline the business and reduce central overhead.

“Measures have already been taken which will result in a reduction in ongoing trading costs of approximately £1m in the current year.

“One-off incremental cash costs of approximately £1.25m in relation to this exercise will be incurred in the current year in addition to the costs of closing the Hong Kong office and of the proposed move to AIM both previously announced with the preliminary results in April.

“Further cost saving actions will be taken later in the year.”

The company had previously announced that - subject to shareholder approval to be sought at Thursday’s meeting - it intended to move to the AIM market on 28 July.