Harvey Nash's (HVN) shares slipped about 4 per cent on the back of these full-year figures after the recruiter revealed an uninspiring European performance. Moreover, and while group net fee income (NFI) rose 6 per cent to £83m, headline profit was hit by £800,000 in exceptional charges - largely related to the relocation of the head office to Heron Tower in London. But that should deliver £900,000 in annualised savings.
In Europe, net fee income (NFI) slipped 2 per cent to £38m - although, reflecting tight cost controls and changes in revenue mix towards temporary and contract recruitment, operating profit there rose 5 per cent to £5.9m. The acquisition of Talent-IT in Belgium also helped - indeed the Benelux operations were the region's strongest and NFI there rose 18 per cent while operating profit jumped 38 per cent. Harvey Nash also spent £1.3m buying the remainder of Norwegian executive search company Bjerke & Luther - it had previously held a 49.9 per cent stake. The UK and Ireland business, meanwhile, grew NFI 9 per cent to £31.2m as public sector demand in healthcare and education offset weak financial sector conditions. And US gross profit rose 11 per cent to £11m, with operating profit up 14 per cent to £1m.
Broker Panmure Gordon expects adjusted pre-tax profit of £8.8m for 2014, giving EPS of 8.3p.
HARVEY NASH (HVN) | ||||
---|---|---|---|---|
ORD PRICE: | 77p | MARKET VALUE: | £57m | |
TOUCH: | 76-77p | 12-MONTH HIGH: | 81p | LOW: 47p |
DIVIDEND YIELD: | 3.8% | PE RATIO: | 10 | |
NET ASSET VALUE: | 93p* | NET CASH: | £5m |
Year to 31 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2009 | 420 | 9.53 | 9.00 | 2.00 |
2010 | 376 | 1.28 | 1.09 | 2.20 |
2011 | 422 | 6.25 | 5.85 | 2.42 |
2012 | 533 | 8.54 | 7.97 | 2.66 |
2013 | 595 | 7.87 | 7.49 | 2.92 |
% change | +12 | -8 | -6 | +10 |
Ex-div: 19 Jun Payment: 12 Jul *Includes intangible assets of £52m, or 71p a share |