Harvey Nash sees City jobs bounce back

RECRUITMENT specialist Harvey Nash said yesterday that a rise in jobs in financial services had helped the company to boost its profit.

The firm saw pre-tax rise to £2.6m from £1.8m a year earlier as new life was breathed into the jobs market following the recession.

An increase in regulation has seen companies recruit more risk specialists, according to the company.

Banks are also hiring more IT specialists as mergers – like that of Lloyds and HBOS – have created problems as incompatible computer systems have caused confusion.

Harvey Nash chief executive Albert Ellis said: “Things are looking better. We have seen an improvement in jobs in the City.

“Companies are employing more permanent staff and the added regulation means companies need specialists to deal with that.

“Jobs in tech are also picking up and things seem to be improving.”

The company saw revenue drop despite the profit rise.

Ellis attributed the lower revenue to a fall in the number of contract staff being employed.

He added: “There is less activity with contracts but on the whole things are picking up.”

However, he issued a stark warning to the government that the recovery should not be strangled through a hike in taxes in the financial services sector.

Ellis said: “The government has to be very careful not to overstep the mark and attack the City because of the huge contribution it makes. To raise taxes would be a very bad idea with a fragile economy.”

The company announced an interim dividend of 0.935p per share has been recommended, up from 0.850p in 2009.