Headline numbers for UK-based international recruitment, outsourcing and offshoring firm, Harvey Nash looked pretty reasonable for Q1 (to 30th May), with revenues 12% up and gross profit 7% higher yoy. But as signalled in its FY results, various factors – including a set-back in its German outsourcing business and a 'late' Chinese New Year – left operating profit 14% down. Nonetheless, CEO Albert Ellis still expects to make the FY numbers again this year.
Much hinges on Harvey Nash's Vietnam-based offshoring business (see Harvey Nash looks to Vietnam offshoring for growth and also the latest edition of OffshoreViews) which has been providing rather useful profit support, given the still rather fragile outlook for European recruitment markets.