Trading Update & Termination of Offer Talks

 

TIDMHHC 
 
RNS Number : 9717P 
Hexagon Human Capital PLC 
02 April 2009 
 

Date:              2 April 2009 
On behalf of:       Hexagon Human Capital plc ('Hexagon', the 'Company' or the 
'Group') 
Embargoed until:      0700hrs 
 
 
Hexagon Human Capital plc 
  *  Trading Update 
  *  Termination of offer talks 
 
Hexagon Human Capital plc, (AIM: HHC), the Senior Interim Management and 
Executive Search consultancy, is today issuing a trading update in respect of 
its financial year ended 31 March 2009. 
Early indications of performance for the full year suggest that Net Fee Income 
(NFI) will be in the region of GBP22m and EBITA not less than GBP5.9m. Trading 
conditions in the second half of the financial year have been more difficult 
than in the first half. However, through our market leading position in the 
senior interim management market and diligent cost management we have continued 
to convert NFI to EBITA at a premium level of 27% for the full year. 
After three consecutive quarters of year on year growth, NFI for the quarter 
ending 31 March 2009 is anticipated to be below that of the quarter ending 31 
March 2008. The majority of this shortfall arises from the Group's executive 
search businesses, whilst Hexagon's senior interim management business, which 
accounts for 64% of Group EBITA, remains robust with NFI being broadly in line 
with the comparable quarter last year and enquiry rates remaining stable 
throughout the year. The Directors believe this, coupled with the cost reduction 
initiatives implemented across the Group, puts Hexagon in a strong position for 
the future. 
During the year we have also substantially strengthened the Group's balance 
sheet through the reduction of bank debt by GBP1.1m (from GBP10.0m to GBP8.9m) 
and the reduction of deferred consideration liabilities by GBP8.7m (from 
GBP15.0m to GBP6.3m). Through prudent cash management, settlement of deferred 
consideration obligations and the restructuring of the Group's bank facilities 
via the issue of Convertible Loan Notes to Barclays early in the new financial 
year, as approved at the Group's General Meeting on 6 March 2009, we will be 
providing further strength to our balance sheet. 
On 17 February 2009, the Board of Hexagon announced that it had received an 
unsolicited preliminary indicative approach from a third party that may or may 
not lead to an offer being made for the entire issued share capital of the 
Company. The Board can confirm that these discussions have not resulted in a 
proposal which was capable of being recommended to shareholders and accordingly 
these discussions have now been terminated. 
The Company expects to release its preliminary results for the year to 31 March 
2009 during the week commencing 22 June 2009. 
 
 
Jonathan Wright, Chief Executive Officer of Hexagon Human Capital, said: 
"Given the challenging global economic environment, we are delighted with the 
Group's performance. The economic outlook continues to look challenging in the 
short term but given our strength in senior interim management and our diverse 
portfolio of international executive search businesses we remain optimistic 
about the medium term." 
Contacts: 
 
 
Hexagon Human Capital plc                           Tel: [phone] 
Jonathan Wright, Chief Executivewww.hexagonhc.com 
Carl Thompson, Finance Director 
 
 
Brewin Dolphin Investment Banking (NOMAD)     Tel: [phone] 
Matt Davis/Alison Barrow 
 
 
Redleaf Communications 
Emma Kane/Sanna Sumner/Anna Dunkin               Tel: [phone] 
 
 
Notes to Editors: 
 
§ It was established in 2004 by Jonathan Wright and Dr Swee Lip Quek with a 
strategy to buy and build in the interim management and executive search 
sectors; 
§ Hexagon has already built up a portfolio of profitable companies operating in 
a variety of sectors: 
§ Archer Mathieson: A leading UK provider of interim management and executive 
recruitment in the specialist fields of finance, IT and human resources; 
§ BIE Interim Executive: The UK's leading senior interim management company; 
§ Correlate Search: Provider of specialist executive search in the international 
financial services industry, with operations in the UK and Dubai & Hong Kong; 
§ Euromedica: The UK's leading life sciences and healthcare executive search 
provider with operations in the UK, Benelux, France, Switzerland, Scandinavia 
and India; 
§ Oxygen Executive Search: Providing leadership talent to UK and the US in the 
retail financial services, industrial, consumer, professional services and real 
estate sectors. 
§ Roberts & Corr: Providing board level search to a number of major companies in 
their specialist sectors including media, financial services, retail and 
management consultancy. 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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