Funds controlled by asset management company DBAY published their recommended final cash offer for recruiter Harvey Nash (HVN) in early September, pricing the business at 130p a share, plus a 1.75p interim dividend for existing shareholders. The deal will be put to a shareholder vote on 2 October and, subject to the usual approvals, is expected to become effective in the fourth quarter of 2018.
With this in mind, the group’s half-year performance is almost an afterthought, but it has put in a respectable performance in the six months to July. Harvey Nash has a healthy contract management services business, where it acts as an agent between clients and third-party agencies. And the strength of the technology sector and rising demand for contractors fed through to a 23 per cent rise in operating profits.
There were some top-line adjustments under the new IFRS 15 accounting treatment, but negative restatements for revenue and cost of sales effectively cancelled each other out. You get a better idea of progress through the period by the 11 per cent growth in like-for-like gross profits.
| HARVEY NASH (HVN) | ||||
| ORD PRICE: | 127p | MARKET VALUE: | £93.3m | |
| TOUCH: | 127-129.5p | 12-MONTH HIGH: | 133p | LOW: 76p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 81p* | NET DEBT: | 36% | |
| Half-year to 31 Jul | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 (restated) | 254 | 4.42 | 4.47 | 1.64 |
| 2018 | 292 | 5.26 | 5.48 | 1.75 |
| % change | +15 | +19 | +23 | +7 |
| Ex-div: | 04 Oct | |||
| Payment: | 29 Oct | |||
| *Includes intangible assets of £67m, or 91p a share | ||||
