Harvey Nash Group PLC Pre-close Trading Update and Notice of Results (4087Y)
March 03 2017 - 1:00AM
UK Regulatory
TIDMHVN
RNS Number : 4087Y
Harvey Nash Group PLC
03 March 2017
3 March 2017
HARVEY NASH GROUP PLC
("Harvey Nash" or the "Group")
Pre-close Trading Update and Notice of Results
Harvey Nash, the global executive recruitment and professional
services group, issues the following trading update in advance of
the Group's final results for the full year ended 31 January 2017
(the "Period"), which will be announced on 27 April 2017.
Trading update
The Board expects to report adjusted pre-tax profit(1) for the
year ended 31 January 2017 in line with market expectations.
Overall gross profit increased by 8% (-1% on a constant currency
basis(2) ). While growth was held back in the UK & Ireland by
Brexit uncertainty gross profit was up by 18% in Mainland Europe
(4% on a constant currency basis(2) ). The constant currency(2)
decline in "Rest of World" was due to challenging market conditions
in Hong Kong while in "Offshore Services" it was due to increased
costs in Vietnam as a result of the depreciation in the value of
sterling during the year.
Year ended 31 January
2017
------------------------------
Gross profit %
----------------- ------------------------------
Geography Actual Constant currency(2)
----------------- ------- ---------------------
UK & Ireland 0% -3%
----------------- ------- ---------------------
Mainland Europe +18% +4%
----------------- ------- ---------------------
Rest of World +6% -7%
----------------- ------- ---------------------
Total +8% -1%
----------------- ------- ---------------------
Year ended 31 January
2017
------------------------------
Gross profit %
----------------------- ------------------------------
Service line Actual Constant currency(2)
----------------------- ------- ---------------------
Permanent recruitment +10% 0%
----------------------- ------- ---------------------
Contracting
recruitment +9% 0%
----------------------- ------- ---------------------
Offshore services 0% -10%
----------------------- ------- ---------------------
Total +8% -1%
----------------------- ------- ---------------------
Financial position
Net cash of GBP5.5m at the year-end was achieved due to tight
control of working capital. The Group has no term debt.
Albert Ellis, Chief Executive Officer, said:
"The Group has delivered a resilient trading performance despite
the significant uncertainty created by the referendum. Mainland
Europe, which accounts for 40% of total gross profit, continued to
make satisfactory progress. Cash flow has materially exceeded
expectations with the year ending in a positive net cash position,
some GBP5 million higher than 31 January 2016."
Notes
1. Adjusted profit is before a provision of GBP0.5m relating to
non-recovery of prior year receivables in the United States.
2. Constant currency is calculated by re-translating current year figures at prior year rates.
ENQUIRIES:
Harvey Nash Albert Ellis Tel: 020 7333
(CEO) 2635
Richard Ashcroft
(CFO)
Hudson Sandler Fern Duncan Tel: 020 7796
Michael Sandler 4133
This information is provided by RNS
The company news service from the London Stock Exchange
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