According to a trading update for the year to 31 January 2018, group UK & Ireland gross profit is up 6% year on year, with demand improving over the second half of the year for technology recruitment despite widely reported Brexit-related market volatility. The increase in demand is broadly spread across the UK, with a number of financial services companies actively relocating operations outside of London.

Mainland Europe was cited as being the key driver of organic growth in the group, with gross profit up 5% overall year-on-year, led by strong demand for contract recruitment and managed services in the Benelux, up 20% year-on-year.

In the Rest of World, however, GP was down 19% year-on-year, which the group attributes to reduced contractor numbers in the US and the impact of reductions in headcount. The group noted, however, its transformation programme has put the Rest of World in a much better position going forward due to a focus on the group’s geographic presence on its core markets and closed loss-making offices. The group’s outsourcing business in Vietnam exceeded management expectations along with executive search in the US, which reported record results.

Harvey Nash CEO Albert Ellis said: “Last year was an important one for the group, in which we initiated a transformation programme to streamline and refocus the business, and completed two acquisitions. Our acquired businesses are already contributing to the group’s profitability alongside good levels of organic growth.

“We enter 2018, which is the group’s 30th year since incorporation, with a strong balance sheet and well positioned to capitalise on the continued growth in demand for technology and digital skills.”

The group added a more detailed update will follow upon release of preliminary results on 27 April 2018.

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