Despite a buoyant jobs market, profits dip at tech recruiter Harvey Nash Ireland

The company recently announced major expansion plans for its workforce.

By Paul O'Donoghue

DESPITE A BUOYANT market for tech jobs, profits have dipped at the Irish arm of recruiter Harvey Nash amid what it described as “difficult market conditions”.

New accounts just filed for Harvey Nash Ireland, which specialises in sourcing technology staff, show that the company made a profit of almost €726,000 in the year to the end of January 2016.

This was down compared to the firm’s 2015 financial year, when it made a profit of just under €1.1 million. Turnover also fell slightly at the company, dropping from about €28 million to €26.8 million over the year.

Harvey Nash Ireland is focused on recruitment for the tech industry and in May the firm announced that it plans to hire 40 staff in the areas of recruitment and support services over the next 24 months.

The company also said its consultancy division, which employs more than 300 people already in both permanent and contract roles, expects to take on 60 more people.

The IT and communications sector had one of the fastest rates of job growth in 2015, according to CSO figures, with total employment increasing more than 4%.

A startup hub

Harvey Nash Ireland managing director Sonya Curley previously told Fora that the business is experiencing “increased demand because of how much Ireland has emerged as a significant startup hub”.

“Some of the companies that we’ve worked with at an early stage have enjoyed significant investment and they’re now looking at ramping up their hiring,” she said at the time.

harvey nash  Sonya Curley Harvey Nash Ireland managing director Sonya Curley
Source: Youtube

The directors report for Harvey Nash Ireland described the company’s profit for the yeat to January as “satisfactory” and added that the business “looks forward to a period of consolidation and growth in the coming financial years”.

“Given the current difficult market conditions, we are satisfied with the way the current financial year is progressing and we have confidence in the resilience of our strategy and prudent management approach will continue to benefit the company in the financial year ahead,” it said.

Rising expenses

While the company’s ‘cost of sales’ fell during the latest period, from €24.4 million to €23.5 million, administrative expenses increased, rising from €2.36 million to €2.48 million.

The €726,000 profit brought Harvey Nash Ireland’s accumulated profits to €5.3 million at the end of January, compared to €4.6 million at the end of the previous year.

The monthly average number of people employed by the business was 28, compared to 29 during the 2015 financial year.

Harvey Nash Ireland is the local arm of UK-based recruitment giant Harvey Nash PLC. The English company is listed on the London Stock Exchange and more than 40 offices across Europe, Asia and the USA.

In the 2015, the combined revenue for its UK and Irish operations was £230m (€254 million at today’s rates).