Harvey Nash reveals resilience in face of Brexit vote

Hayley Kirton
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The company's profits grew particularly strongly in the US market (Source: Getty)

Global recruiter Harvey Nash today revealed what it described as a "resilient" performance, adding that it was in a good position to weather Brexit uncertainty.

The figures

In a brief statement on its financial position released ahead of its AGM today, Harvey Nash announced that its gross profit for the four months ended May had increased by four per cent on a constant currency basis and eight per cent on an actual basis.

The company's performance in the United States market had been particularly strong during the period, increasing by 17 per cent on a constant currency basis and 24 per cent on an actual basis.

Although the company did not experience a decrease in profits in any geographical markets it operates in, its performance in the UK and Ireland market for the period stayed flat.

Harvey Nash also revealed that its gross profits for permanent recruitment, while increasing three per cent on an actual basis, slumped two per cent on a constant currency basis. However, in the market for temporary and offshore jobs, its gross profits grew by 12 per cent on an actual basis and eight per cent on a constant currency basis.

Share price in the company was trading up 12.7 per cent at 60p at time of writing.

Why it's interesting

With over a third (39 per cent) of the company's profits coming from its mainland Europe trade, investors are likely looking for guidance on where the company thinks it stands following last week's vote to leave the EU.

However, today's results should provide some reassurance that the company is in a strong position of navigate through the uncertainty that is sure to surround many businesses in the coming months.

What Harvey Nash said

Speaking ahead of the AGM, Julie Baddeley, chairman of the company, commented:

The directors are encouraged by this performance. While mindful of economic uncertainty following the EU referendum and an associated lack of visibility, we believe that Harvey Nash, with its robust balance sheet and strategically defensive mix of contracting, offshoring and high proportion of non-sterling earnings, is well placed to deliver further resilient performances through uncertain times.

In short

A confident trading update putting the firm in a strong position to cope with uncertainties ahead.

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