IT recruitment agency Harvey Nash saw a five per cent decline in gross profits in the first six months of this year, but said it maintained revenues thanks to growth in offshoring work.

The agency expects revenues in line with last year and a gross profit of £2m for the half year ended 31 July.

In a statement to the Stock Exchange, the firm said it was increasing its dividend by 11 per cent to 2p a share.

The company said: "As anticipated, the decline in demand for recruitment services has been partially offset by the performance of our IT outsourcing businesses."

Harvey Nash has no long term debt and facilities of £29m ready to fund growth when the upturn begins. ®

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