Harvey Nash Group Regulatory News (HVN)

20 Dec 2007 07:01

Harvey Nash Group PLC20 December 2007 HARVEY NASH GROUP PLC('Harvey Nash' or the 'Group') Interim Management Statement Current trading and financial position In our interim results announcement for the six months ended 31st July 2007,issued on 28 September, we said that we were seeing overall continued growth ofnet fee income into the second half when compared to the same period last year.This remains the case. In the three months ended 31 October 2007, turnover increased by 28% and net feeincome increased by 23% over the comparable period last year. Revenue andprofit for the quarter have improved sequentially over the previous quarterended 31 July 2007. This positive trend has continued to date and the Board isconfident of delivering results for the full year in line with its expectations. Trading cash flows continue to be strong, and the Group's balance sheet issubstantially strengthened when compared to the same point last year throughcontinued tight control of the cost base and excellent working capitalmanagement. As a result of the strong cash generation, the Group has reduced its short termoverdraft facility by 50% and intends to repay its term loan in full, one yearearly, by 31 January 2008. In addition, the Group has extended its workingcapital facilities in Europe increasing the Group's overall cash headroom. Dividends The Group paid an interim dividend of 0.7p per share on 30 November 2007 toshareholders on the register at 12 October 2007. Acquisitions On 17 August Harvey Nash acquired Rescon IT, one of Ireland's leading ITrecruitment and solutions businesses, based in Dublin, specialising intechnology professionals and outsourcing solutions for Fortune 500 clients aswell as public sector organisations. The acquisition successfully launchedHarvey Nash into the Irish market, further extending its European network. Theinitial consideration of approximately €3.7 million was paid in cash during thequarter. On 5 November the Group purchased a 49.9% equity stake in TechDiscovery LLP,based in Atlanta, for an initial consideration of £0.7m with an option toacquire the remaining 50.1%. This expanded the successful existing strategicpartnership between the two organisations, which have worked together closelysince 2006 and have forged a mutually beneficial strategic alliance providingjoint IT Solutions and Consulting to shared clients across the USA. The Group is delighted to report that all the acquisitions made during the yearare performing in line with expectations and have begun making positivecontributions to the Group. Substantial progress has been made with theirintegration and we are achieving the expected synergy benefits. Harvey Nash will be reporting its preliminary results for the year ended 31January 2007 on 17 April 2008. 20 December 2007 ENQUIRIES: Harvey Nash Tel: 020 7333 0033Albert Ellis, Chief ExecutiveRichard Ashcroft, Finance Director College Hill Tel: 020 7457 2020Mark GarrawayMatthew Gregorowski Notes to Editors: Harvey Nash, a global professional recruitment consultancy and IT offshoreservice provider, is committed to delivering the very best talent and ITservices to a broad base of clients. Its 3,500 staff and associates, operating from 35 offices covering the USA,Europe and Asia, work to the highest levels of integrity, professionalism andquality in providing its unique portfolio of services: executive search, interimmanagement, IT recruitment solutions and IT offshore services. For more information please visit www.harveynash.com This information is provided by RNS The company news service from the London Stock Exchange