Harvey Nash 'resilient' despite Brexit challenges

Global executive recruitment and professional services group Harvey Nash issued a trading update in advance of its final results for the full year to 31 January on Friday, which it confirmed would be announced on 27 April.

The London-listed firm’s board said it expected to report adjusted pre-tax profit for the year in line with market expectations.

Overall gross profit increased by 8%, though it dropped 1% on a constant currency basis.

While growth was held back in the UK and Ireland by Brexit uncertainty, the board said gross profit was up by 18% in Mainland Europe , or 4% on a constant currency basis.

The constant currency decline in its ‘Rest of World’ market was reportedly 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, the board explained.

Net cash of £5.5m at the year-end was achieved due to tight control of working capital, the board added, and it confirmed the group held no term debt.

“The group has delivered a resilient trading performance despite the significant uncertainty created by the referendum,” said chief executive officer Albert Ellis.

“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.”