Recruiter Harvey Nash surfs ahead on resilient IT sector

The apparent resilience of the high tech sector to the global credit crunch bodes well for the continued growth of specialist IT recruiter Harvey Nash, chief executive Albert Ellis says.

‘I feel quietly confident even though there have been some uncertainties around the world because in the IT sector we’re not seeing demand falling in any way,’ Ellis told Citywire in an interview.

‘In fact in Europe demand is increasing,’ he added, noting net fee income for the region increased by 25% over the first half to 30 June, the company’s fastest growing segment.

The company posted a 17% increase in pre-tax profit to £3.1 million from £2.6 million during the same period last year on revenue that increased 19% £143.9 million from £121.2 million.

Earnings per share clocked in with a 15% increase to 3.13p against 2.71p and the company reported its first interim dividend of 0.7p per share.

Harvey Nash (HVN)earns about one-third of its revenue from global banks, which have continued to show profit growth and IT demand, although recruitment in account staff in front offices might expect to be impacted, Ellis said.

Harvey Nash, which has about 3,700 staff in 33 countries, looks to organic growth for about two-thirds of its expansion but the other third has been boosted by acquisitions in Ireland, Sweden and Vietnam recently.

The executive search firm Alumni in Sweden bought for £8 million represents an opportunity to take advantage of labour deregulation there which was slower to take hold than in France and Germany.

‘It’s good to be on the ground when these markets open up,’ Ellis said.

Vietnam’s SilkRoad Systems, a software and technology development company, is a £1.8 million expansion in the outsourcing part of Harvey Nash’s business which also cross-pollinates its IT recruitment.