INTERVIEW: Harvey Nash Group – “A lot of value in the shares” Zeus Capital

Harvey Nash Group Plc (LON:HVN) is the topic of conversation when Mike Allen, Head of Research at Zeus Capital joins DirectorsTalk. Mike talks us through the prelim result highlights, explains how the market is performing, how the results affect forecasts and in terms of company value the key things investors should consider.

The Harvey Nash Group is a global technology recruitment and IT outsourcing business, with a focus on technology and digital recruitment. Our unique portfolio of services, executive search, professional recruitment and IT outsourcing, enables us to engage with clients at every stage of the business cycle. Our relationship-based model underpins the delivery of resilient financial returns and supports sustainable returns to shareholders.

Albert Ellis, Chief Executive Officer of Harvey Nash Group, commented on the results: “The Group delivered an excellent performance in the year to January 2018, driven by our transformation programme which saw us sharpen our focus on the buoyant demand for technology skills, streamline our operations and complete two earnings enhancing acquisitions. This combination of organic and acquisitive growth, our renewed strategy and transformed cost base resulted in a 24% uplift in Core profit before tax and an increased core conversion margin from 9.5% to 11.7%.

I am particularly delighted by the outstanding performance of the UK business against a backdrop of Brexit related uncertainty and an overall decline in demand reported by many others in our sector. A successful acquisition in IT solutions, increased demand in the regions and strong growth in Financial Services in London has contributed to this excellent result.

We are encouraged by the strong trading momentum in the second half of the year to January 2018 which has continued into the current year. As a result, the Board is confident the Group will continue to make significant progress in the year ahead.”

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