Harvey Nash’s third quarter trading has been ‘significantly lower’ than last year, according to an interim management statement from  the professional recruiter and IT outsourcing provider covering the period from August to 24 November 2009.

The statement says that Q3 trading, while stable compared to Q2, was significantly lower against a particularly strong comparative last year. Harvey Nash recorded a 23% decrease in revenues and a 72% fall in adjusted profit before taxation in the period.

The statement adds that although the firm has recorded increased demand for its IT outsourcing services, positive sentiment has yet to result in increased demand for permanent recruitment, which it says will ‘materially impact’ the group’s Q4 trading and results for the full year.

The statement continues: “As always, the last four months of the year are critical to the outcome for the year as a whole. Crucially, the typically strong trading month of October was impacted with permanent revenues down 4% sequentially on September at a time when an uplift in activity would ordinarily have been expected.

“Therefore, based on Q3 trading and with limited visibility for the final quarter, the board now expects the second half to be broadly in line with the first half. It should be noted however, that a proportion of the shortfall for the current financial year arises from IT software projects subject to delay and deferred into 2010.

“While the group has not been immune to the global recession, it has remained profitable throughout the downturn. Our broad portfolio of cash-generative services, and our strong balance sheet, will continue to underpin a profitable financial performance for the year.”