Harvey Nash today announced reduced profits for the six months ending 31 July 2001.

Operating profit was down to £1.7m from £7.1m at the same time last year. Profits before tax were down to £0.7m from £6.7m a year ago. Turnover increased by over £30m to £126.4m.

Commenting on the results, CEO David Higgins said: ‘Following the widely reported slowdown in the technology and telecoms sectors, together with the global economic downturn, the demand for our services has weakened considerably.’

The last six months have been ‘one of the most challenging trading periods’ in the company’s history, he added.

Harvey Nash has cut its cost base via ‘the closure of certain offices and a reduction in headcount’, said Higgins. ‘While trading conditions remain difficult, our strategy is to maintain critical mass and preserve our investment in infrastructure, in order to be well positioned to increase revenue and profits when markets recover.’