Mainland Europe drives 17% rise in revenues growth at Harvey Nash
25 April 2014
Mainland Europe was the main driver as international professional recruiter Harvey Nash grew its overall revenue by 17% in 2014 to almost £700m, according to preliminary results issued today.
Fri, 25 Apr 2014
Mainland Europe was the main driver as international professional recruiter Harvey Nash grew its overall revenue by 17% in 2014 to almost £700m, according to preliminary results issued today.
Revenue in mainland Europe increased by 26% to £421m in the year ended 31 January 2014 compared to the previous year, pushing revenue for the group 17% higher to £697m.
However, while revenue surged, profits did not keep pace, with adjusted profit before tax rising by just 4% to £9m.
The company says it saw strong growth in key geographies, with continuing growth in marketshare, particularly in the UK, Nordic and Benelux regions.
Revenue in Harvey Nash’s US business rose 3% to £47m, while Asia-Pacific revenue grew by 17% to £5.5m.
Referring to the company’s performance in mainland Europe, Albert Ellis, chief executive officer, says the company was able to pick up marketshare because it was seen by clients as more financially stable than its competitors.
“We were seen as a safe haven,” Ellis told Recruiter. He added this helped it to pick up some big contract wins, including contracts with Deutsche Telecom, IBM and ING. “That is what is driving the turnover,” said Ellis.
An improvement in the financial services sector in Switzerland in the second half of the year also boosted performance.
While revenue in mainland Europe roared ahead, gross profit failed to keep pace, rising by only 6%. This reflected the fact that 90% of the company’s business in Europe is lower margin contract recruitment, Ellis explained. He added: “The permanent [higher margin] recruitment market is quite weak.”
However, Ellis predicted that margins will begin to improve in the next six to 12 months as the company takes advantage of a recovery in the permanent market in Europe. He said there were already tentative signs of recovery in Sweden and “early green shoots in Northern Europe”.
Ellis said the company’s UK performance, where revenue increased by 6% to £224m, was buoyed by “a robust” digital and technology sector. “There has been a surge in digital demand,” he added.
In conclusion, Ellis said he was optimistic about the future: “I really think we are the beginning of a three to five-year growth path as the world economy recovers, and that is good for recruitment.”
Revenue in mainland Europe increased by 26% to £421m in the year ended 31 January 2014 compared to the previous year, pushing revenue for the group 17% higher to £697m.
However, while revenue surged, profits did not keep pace, with adjusted profit before tax rising by just 4% to £9m.
The company says it saw strong growth in key geographies, with continuing growth in marketshare, particularly in the UK, Nordic and Benelux regions.
Revenue in Harvey Nash’s US business rose 3% to £47m, while Asia-Pacific revenue grew by 17% to £5.5m.
Referring to the company’s performance in mainland Europe, Albert Ellis, chief executive officer, says the company was able to pick up marketshare because it was seen by clients as more financially stable than its competitors.
“We were seen as a safe haven,” Ellis told Recruiter. He added this helped it to pick up some big contract wins, including contracts with Deutsche Telecom, IBM and ING. “That is what is driving the turnover,” said Ellis.
An improvement in the financial services sector in Switzerland in the second half of the year also boosted performance.
While revenue in mainland Europe roared ahead, gross profit failed to keep pace, rising by only 6%. This reflected the fact that 90% of the company’s business in Europe is lower margin contract recruitment, Ellis explained. He added: “The permanent [higher margin] recruitment market is quite weak.”
However, Ellis predicted that margins will begin to improve in the next six to 12 months as the company takes advantage of a recovery in the permanent market in Europe. He said there were already tentative signs of recovery in Sweden and “early green shoots in Northern Europe”.
Ellis said the company’s UK performance, where revenue increased by 6% to £224m, was buoyed by “a robust” digital and technology sector. “There has been a surge in digital demand,” he added.
In conclusion, Ellis said he was optimistic about the future: “I really think we are the beginning of a three to five-year growth path as the world economy recovers, and that is good for recruitment.”
