East Asia is still the big story at recruitment outfit Harvey Nash (HVN). The group has shifted some of its workforce to Vietnam in recent months, but the latest development is the acquisition of executive recruitment company Beaumont KK in Japan. Chief executive Albert Ellis said the “recovery story” in Japan played into recruiters’ hands, and demand for technology appointments in the region remained strong.
Technology recruitment is a booming business elsewhere, too, says Mr Ellis, with growing demand for software and website developers as more companies go digital. London’s reputation for technology innovation helped push revenues in the UK and Ireland up 2 per cent to £114m in the first half, driving a 10 per cent improvement in operating profit to £1.9m.
European revenues leapt 13 per cent to £217m in the period, with muted performances in Germany and the Nordic regions offsetting roaring growth from the Benelux countries. But costs also grew, so that gross profits actually fell. Germany was held back by a plunge in permanent recruitment revenues, but Mr Ellis said trading had picked up during the third quarter.
Brokerage Numis expects pre-tax profits of £9.8m for the current financial year, giving EPS of 9.4p, up from £9m and 8.8p respectively.
| HARVEY NASH (HVN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 104p | MARKET VALUE: | £ 76m | |
| TOUCH: | 100-106p | 12-MONTH HIGH: | 125p | LOW: 87p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 87p* | NET DEBT: | 7% | |
| Half-year to 31 July | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 329 | 1.8 | 1.7 | 1.24 |
| 2014 | 356 | 4.2 | 4.2 | 1.36 |
| % change | +8 | +133 | +151 | +10 |
Ex-div: 23 Oct Payment: 21 Nov *Includes intangible assets of £49.6m or 68p per share | ||||
