First-half growth for Harvey Nash as margins slip again

In today’s trading update it looks like the first half of the year got off to a fine start on the top line for UK-based international recruitment, outsourcing and offshoring firm, Harvey Nash, with headline revenues in H1 (to 31st July) rising by 15% to £293m. However, gross margins continued their downward trend, to 14.0%, about a point lower yoy. The recent acquisition of tiny Antwerp-headquartered ITSA (IT staff agency) Talent-IT (see here) should help move the profitability needle a tad to right, but the real problem appears to be in the UK business, the source of one-third of Harvey Nash’s revenues, where gross margins lost over four points last year. More when the full interim results are out at the end of September.