The firm has increased capacity from £40m to £52m, split between RBS Corporate & Institutional Banking (RBS CIB) and RBS Invoice Finance (RBSIF), as it looks to capitalise on strong business momentum in 2012 and further opportunities for growth.
The £52m deal from RBS is split between a £50m invoice finance facility from RBSIF and a £2m working capital facility from RBS CIB. Significantly, the invoice finance deal has been designed to be used by Harvey Nash’s international businesses and not just for the UK operation.
Established in 1988, Harvey Nash works with world's leading organisations to recruit, source and manage highly skilled talent. The firm, which employs 4,000 professionals in 40 offices across the US, Europe and Asia, recently announced that its earnings for the full year ended 31 January 2013 will be slightly ahead of expectations: total revenue of circa £590m versus £533m in 2012 and profit before tax up to £8.6m.
The group benefitted from significantly increased market share in the UK and Ireland in 2012. It also successfully captured more business in temporary and contract recruitment in the Benelux and Germany, and achieved steadily improving results in Asia, where investments in two additional offices in Hong Kong and Sydney were made during the course of 2012. The integration of the Talent IT business in Belgium, acquired in May 2012, has also surpassed expectations.
"We have been banking with RBS since the company was formed 25 years ago. RBS has been a trusted partner all of that time supporting the group through good times and particularly through not so good times, fully appreciating our business model and specific market dynamics. Their ongoing support has been crucial to the unprecedented decade of growth we have just delivered. So we are delighted that RBS have been able to deliver this additional complex global financing for Harvey Nash so that we can focus on managing the next phase of business growth."
Albert Ellis, chief executive officer at Harvey Nash
"Harvey Nash has delivered consistently strong growth through challenging market conditions. The firm remains a leading global recruitment brand with significant international experience in the technology and telecoms sectors. There is a strong, long-standing relationship and we are delighted that we have been able to support this leading player in our sector."
Gareth Thompson, relationship director, RBS Corporate & Institutional Banking
"Harvey Nash is an impressive global operation with ambitious growth plans and a highly valued RBSIF client. This latest deal is an extension of the current invoice finance facilities in place and is being used to support the firm’s continued success and expansion in the UK, US and Europe by enabling them to immediately raise funds through the cash benefit of its sales and in turn manage their cash flow effectively."
David Handley, relationship manager, RBSIF Corporate