Harvey Nash has announced a fall in profits for the first half of 2009.

After tax profits for the six months ended 31 July were down 54% at £1.8m compared with £3.9m in the first half of 2008.

Gross profits declined by 4.9% to £31.7m as revenue remained virtually unchanged at £200m.

UK revenue fell by 8% to £56.4m and operating profits declined by 41% to £1.2m as all the company’s markets, except the public sector, were hit by the downturn in recruitment.

Executive search and permanent recruitment were hit the hardest, with Ireland the worst affected geographically. Revenue in the rest of Europe declined by a relatively modest 1%.

In the US, revenue increased by 28% to £15.7m (2008: £12.3m) and gross profit increased by 13% to £4.8m (2008: £4.3m).

Chief executive Albert Ellis says: “Most of our businesses across the group have performed exceptionally well in very challenging markets and we are pleased to have maintained our revenues in line with the previous year, demonstrating tangible gains in all of our geographic segments. Our businesses are focused on remaining profitable as well as planning for growth when the upturn comes.

“Demand for outsourcing, whilst highly competitive, continues to be buoyant, generating an encouraging volume of opportunities positioning the group well to take advantage of the recovery.”