Headhunter wary despite pick-up
BUSINESS has picked up at Reed Executive but the headhunter is cautious. Chief executive James Reed said trade in the first three months had improved on the last quarter of 2001 - but was still down 10% on the year-earlier period.
'Market conditions continue to be unpredictable,' Reed added. The low point in the cycle may have been passed, but the firm was 'cautious about the economic outlook for the remainder of the year'. Reed held its dividend at 6p a share.
The company, which specialises in IT and accountancy recruitment, suffered a 21% drop in business in the fourth quarter, and 12% for the full-year. Turnover for its continued operations - it has spun off its healthcare arm - rose 18% to £373.6m and pre-tax profits dropped 7.7% to £14.2m.
The profit figure includes a £1.8m charge relating to demerging Reed Health in July. The results consequently only include six months contribution from the healthcare arm. Reed said it was considering further demergers.
Reed also took a £1.3m charge for litigation against subsidiaries of publishing group Reed Elsevier. The group instigated a High Court action in July 2000 for trademark infringement and passing off. The action went to trial in January this year and it is awaiting judgement.
