Harvey Nash Group expects strong pound to hurt growth rates

2nd Jul 2015 08:33

Recruitment group Harvey Nash warned the strong sterling will continue to impact the current's year growth rates.Despite currency headwinds, the company expects its results to be in line with expectations, with gross profits 4% higher in the four months to 31 May 2015 and operating profits up 1% from same time the year before.On a constant currency basis, however, gross profit rose 8% and operating profit 9%.Panmure analysts maintained their 'buy' recommendation and said: "We believe investors will look beyond the impact of FX or the recently reported conversion ratio and focus on how spare capacity within the business should drive earnings higher".In a short trading update, the group said growth rates are expected to be hurt by a strong sterling in relation to the euro and Nordic currencies.Shares in Harvey Nash fell 3.7% to 98.23p on Thursday at 08:03.