Taking marketshare and new contract wins have helped Harvey Nash post a 28% year-on-year increase in revenues, according to chief executive Albert Ellis. 

The group’s results reveal revenues rose from £198.6m to £253.4m in H1 year on year, while gross profit increased to £38.6m from £32m in the period.

Operating profit was £4.1m in H1 2011, rising from £2.8m in H1 2010 and profit before tax was £3.8m, up from £2.6m.

Ellis told Recruiter: “We are winning a lot of marketshare. We have been doing that right throughout the downturn and now we’re capitalising on those gains. There is a shift for large companies to move their recruitment partners to larger organisations that are secure.

“The corporate sector is de-risking. They want stable, large partners they can rely on and have strong balance sheets.

“We have also won a number of contracts right across Europe and in the UK. We have won new business and that has increased revenue.

“There has been a change in mix. There are more longer-term, lower margin contracting than there was in the mix two years ago. It gives us more visibility and more longer-term revenue but we’re not seeing margins decline any further.

“Pricing has generally stablised. There is always pressure on an individual basis to get the right price; the long-term macro trend has stabilised into a much more predictable situation and that by itself will create growth in the market.”