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19 Jun 2009 07:00
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HARVEY NASH GROUP PLC
('Harvey Nash' or the 'Group')
Interim Management Statement
The Board of Harvey Nash is issuing the first Interim Management StatementΒ for the financial year ending 31 January 2010.Β
This coversΒ the period from 1 February 2009 to 19 June 2009Β and there have been no material events or transactions in the period from 1 February 2008 to 19 June 2009 other than as detailed in this statement.
Β
Current tradingΒ
For the year endedΒ 31 January 2009, the Group announcedΒ excellent financialΒ results with turnover upΒ 32%,Β gross profit up 18%Β and profit before tax up 25%.
The Board is pleased to confirm thatΒ currentΒ tradingΒ wasΒ in line with expectationsΒ forΒ theΒ first quarterΒ endedΒ 30 AprilΒ 2009. TheΒ Group increased itsΒ revenuesΒ byΒ 3%Β when compared to the prior year.Β As we stated in February, and as has been widely reported, the challenging economic environment has had a significant impact on demand for permanent recruitment services and this led theΒ BoardΒ to review its revenue and profit expectations for the current yearΒ at that time.Β Whilst, as foreseen,Β demand for permanent hiresΒ hasΒ continuedΒ to softenΒ this hasΒ beenΒ partially offset by favourable demand forΒ outsourcing and offshoring. We have made limited reductionsΒ toΒ the cost base without damaging the Group's revenue earning potential.
Financial position
The Group continues toΒ enjoyΒ substantial headroom in relation to itsΒ overallΒ banking arrangements (Β£30m)Β forΒ working capital, renewed in March 2009Β with the notice term extended toΒ 1 year. The Group has no term debt following the early repayment of the balance of its term loan on 31 January 2008.
On 18 December 2008, the Group acquired 75% of an Executive Leadership Consultancy based inΒ Poland. In March 2009 contingent consideration of Β£30k was paid in cash. No further consideration is payable during the financial year ending 31 January 2010Β in relation to any of the Group's recent acquisitions.
Dividends
Subject to approval at the Annual General Meeting on 3 July 2009,Β and already announced,Β the Group will pay a final dividendΒ on 17 July 2009Β for the year ended 31 January 2009 of 1.2p per share, an increase of 9%Β (2008: 1.1p) to shareholders on the register as at 3 July 2009.Β
TheΒ total dividend for the year of 2.0p per share (2008:1.8p)Β represents an increase of 11%.
Summary
AlthoughΒ the market for permanent recruitment remains weakΒ and visibility is very limited,Β theΒ Board remains confident thatΒ Harvey Nash'sΒ market leading businesses willΒ continue toΒ benefit fromΒ strongΒ market share gainsΒ and the increasedΒ demand for offshore and outsourcing servicesΒ and isΒ wellΒ placed to benefit from the upturn when it comes.
19 June 2009Β Β ENQUIRIES:
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Harvey Nash |
Tel: 020 7333 2635 |
|
Albert Ellis, Chief Executive Officer |
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|
Richard Ashcroft, Group Finance Director |
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|
College Hill |
Tel: 020 7457 2020 |
|
Mark Garraway, Gareth David |
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