European growth is boosting IT recruitment specialist Harvey Nash, and analysts say the coming year will be even better. 
Nash reported pre-tax profit of £4m for the year to January, compared with £3.2m a year earlier. Turnover rose to £202.3m, from £163.4m. 

“We’re proud of what we’ve achieved,” chief executive Albert Ellis told Recruiter. “There’s been a range of performances in the sector, and we’re at the top, along with Glotel and SThree.”

The company has 3,000 staff and associates worldwide. The fastest growth was in Europe, where turnover rose 61% to £95.7m.
The company gained from new contracts in Switzerland, notably from investment banking giants UBS and Credit Suisse. Nash opened a new office in Geneva at the end of 2005, and a number of multinationals are relocating their European headquarters there. 

In the UK, turnover was flat at £79.2m, as the group looks to focus on higher-margin opportunities. It said demand for its offshore and outsourcing services division continues to increase. During the year Nash won a three-year contract worth £2.7m with Cedar Open Accounts to build an offshore development centre in Vietnam for its software product business. Other major UK clients include BP and the NHS.

Nash said additional investment in its fast-growing New Jersey office had boosted US business. Among its major clients is SunGard, a supplier of software to the investment banks. But it was not all good news in the US. Nash was hurt by reduced spending by Sun Microsystems.

Ellis said the overall stronger demand had continued into the first quarter of the new year. House broker Numis has forecast that pre-tax profit will rise to £5m for the year to January 2007.