International recruiter Harvey Nash says it remains “appropriately cautious” due to the current economic climate but expects to reports an increase in operating profit, in a trading update for the six months to 31 July 2010.

According to the update,Harvey Nash anticipates an increase in operating profit (adjusted for non recurring items) of at least 10% for the period on the same period last year, while revenue and gross profit for the six month period to 31 July  is expected to be broadly similar to the same period last year with the increase in profit before tax (after non recurring items) likely to be more than 40% when compared to 2009.

Harvey Nash adds that it currently has a sound balance sheet with no long-term debt and expects to report a favourable cash position for the period.

The update says: “The group continues to trade well in the current environment but we remain appropriately cautious given the economic climate in which we operate.

“The group, however, continues to benefit from significant market share gains particularly in the UK and Europe and, with geographic exposure in the stronger US and Nordic economies, we look forward to making further progress in line with the board’s expectations.”

Half year results will be announced on 30 September 2010.

Meanwhile, the firm has also announced the opening of another office in the City.

The additional office will serve financial services clients in the City and Canary Wharf areas of London, as well as financial services organisations headquartered in New York, Connecticut, Edinburgh, Frankfurt and Zurich looking to recruit into their London operations.