Harvey Nash shares drop on half-year results

The AIM-traded firm reported strong cash flows despite increasing revenues, with a 5% uplift in the its interim dividend.

Revenue increased by 14.9% overall, or 8% at constant currencies, to £377.7m, with gross profit improving 6.5% overall and 0.8% at constant currencies to £47.3m.

It posted a strong operating cash inflow of £15.2m, with net borrowings reduced by £8.9m on the prior year.

Harvey Nash’s board declared an Interim dividend increase of 5.0% to 1.565p per share.

“The six months under review have produced year-on-year growth in revenue and gross profit, as well as strong cash generation,” said chief executive Albert Ellis.

“An increased interim dividend, despite the challenges of the first half, reflects the board's confidence in the resilience of the group's business model and its strong balance sheet.

“Although mindful of macro-economic challenges, client demand for new hires continues to be driven by digital transformation, cybersecurity and data analytics and the group's strategy remains the prudent expansion of fee-earning capability and growth in market share, coupled with tight control of costs and working capital.”

At 1131 BST, shares in Harvey Nash Group were down 6.4% at 61.89p.