Hexagon Results Match Expectations
The Board of Hexagon Human Capital plc the UK's leading provider of senior interim managers and one of the UK's major executive search businesses, has announced its unaudited interim results for the six months ended 30 September 2008 which are in line with management expectations.
Net fee income was up 45% to 12.6 million and EBITA up 43% to 3.5 million. On revenues of 19.9 million.
Strong performance in both interim management and executive search divisions and in line with management expectations
Group maintains position of UK's No.1 senior interim management company
Euromedica, a subsidiary of Hexagon, confirmed as the UK's No.1 Healthcare and Life Sciences executive search firm for 2nd year
Interim management NFI up 42% and EBITA up 46%
Executive search NFI up 46% and EBITA up 40%
Earnings from interim management increased to 61% of Group EBITA
Acquisition of Correlate Search UK and Dubai (formerly known as Akamai Financial Markets) in April 2008 and business turned from loss to profit
Commenting on the results, Chairman Robert Walker, said:
"I am pleased to report that the results for the first half of the year are in line with management expectations. Further growth in revenues and trading profits has been achieved in both our market leading senior interim management business and our portfolio of specialist executive search businesses.
In these challenging market conditions, we expect to see stable demand for senior interim managers to drive change and transition programmes and we are pleased to note that customer enquiry levels have remained robust in the period.
Our executive search division enjoyed a record trading period in the first quarter of this financial year although the second quarter has seen demand fall back to budgeted levels.
The Group focuses exclusively on supplying senior management talent. This is fundamental in driving our high margins (28% EBITA/NFI conversion) and strong levels of consultant productivity with over 400,000 NFI per consultant. Additionally, the Group has no over dependence on any single sector which coupled with the recent expansion into new geographies (the Middle East and North America) and into growth sectors such as pharmaceutical and life sciences in Europe, reinforces Hexagon's defensive characteristics.
The volatile economic climate makes it difficult to predict with certainty the trading environment in which the Group will be operating in the coming months. However, the defensive characteristics of Hexagon's operations, its weighting towards interim management and the continued implementation of sound financial controls provide the Board with confidence in respect of the outturn for the full year."