Albert Ellis (pictured) has been promoted to chief executive of the listed recruitment firm, Harvey Nash.

Ellis, 36, takes over from David Higgins, who will step down to become deputy executive chairman.

Formerly the company’s finance director, Ellis will continue in this role until a replacement can be found. Non-executive director David Treacher will also retire.

Harvey Nash reported a healthy pre-tax profit for the year ended 31 January 2005.

The firm reported profits of £1.2m before tax, against a loss of £4.5m last year, while its turnover rose to £163.4m from £130.9m last time.

The pre-tax profit was affected by exceptional items including US acquisitions and an updating of the group’s IT systems.

Chairman Ian Kirkpatrick said: “The IT sector recovered strongly during 2004, with higher levels of requirements and in some areas increases in margins and pay rates.

“The recovery occurred mainly in the first half as a result of a release of pent-up demand and new projects coming on stream.”

But shares in the firm slumped following the announcement despite the surge in pre-tax profits. This was because Harvey Nash warned that its executive search arm had been hit by slowing consumer demand.

However Ellis added that demand for permanent IT professionals had increased as a result of more projects coming on line.

He said: “Once the volume of projects increased, demand picked up for flexible IT consultants, positively affecting the group’s contracting business.”