Recruitment firm Harvey Nash has confirmed the renewed optimism in the IT sector by reporting a three-fold rise in profits in the six months to 31 July. The company also recorded a 23% increase in revenue to £79m for the same period.

Chairman Ian Kirkpatrick said buoyant conditions in the UK, as clients renewed their spending on upgrading computer systems, had been the driving factor behind the company’s improved performance.

Government expenditure on IT as it revamped NHS computer systems had been another revenue booster, Kirkpatrick added.

Harvey Nash’s US operation also enjoyed an upswing in performance, chalking up sales of £11.8m for the period, compared with £2.9m for the same period last year.

In continental Europe, where market conditions are more challenging, it more than doubled its operating profit to just under £500,000.

Kirkpatrick said: “Prospects for the group are encouraging as our geographical coverage has enabled us to benefit from strong US growth and an improving UK market, which will give us further increased revenues and profits in the future.”