In a trading statement, Harvey Nash says its second half-year trading was underpinned by the group’s broad portfolio of services and geographic diversity, and that in particular its outsourcing and offshoring business “saw excellent growth”.

The statement continues: “As expected, growth in the UK and Ireland was lower than in mainland Europe, which reported another strong year. The board was also pleased with the performance in the US, where profits have almost doubled when compared to the prior year, mainly as a result of its successful IT outsourcing strategy.

“Accordingly, the board expects to announce revenues increased by approximately 30% and profits before tax by some 25%, in line with its expectations.

“As has been widely reported, the challenging economic environment has had a significant impact in demand for permanent recruitment services, which accounts for 38% of the group’s revenues during the year.

“While it is early in the new financial year, to January 2010, looking forward, the board believes that in the absence of an upturn in demand for permanent hiring, it has been prudent to review its revenue and profit expectations for the current year.

“Continuing the group’s tight control of cost and working capital, the board’s approach is to maintain an appropriate level of headcount to reflect current demand, without sacrificing future opportunities to drive growth and value when the upturn comes.”