Hexagon Human Capital, brought to AIM in February by former Alexander Mann heavy-hitter Jonathan Wright, has delivered strong interim figures to September.

‘Pro-forma’ figures revealed 15% growth in net fee income to £10.2m and in operating profits to £3.8m, with chief executive Wright attributing the results to a strong performance from the senior interim management division. Hexagon is now the UK’s number one provider in this sector, with over twice the market share of its nearest competitor.

Moreover, the interim managers Hexagon provides are used by clients to ‘drive through change’, be it turnaround or growth, which means strong demand in boom times or bust, and the division, representing more than 60% of operating profit, offers excellent recurring revenues throughout assignments typically lasting for nine months.

Within executive search, Hexagon places senior executives into full-time roles both at home and abroad. Its ‘multi-branded, multi-sector strategy’ removes dependence on any one sector, further buffeting the defensive characteristics of the group. Serving a broad slew of sectors, the company claims to have minimal exposure to the credit crunch-hit financial markets.

Recent acquisition Archer Mathieson, bought for a maximum £17.5m, has positioned the business for further strong growth, boosting market leadership in senior interim management and positioning Hexagon ‘on the verge’ of the top ten UK executive search firms. Recent price weakness reflects concerns about wider recruitment sector cyclicality, ignoring Hexagon’s defensive qualities and prospects. For March 2008, profits of £5.3m and earnings of 18.3p are forecast, placing Hexagon on a forward multiple of 8.9. That is too low and the shares are a strong buy.

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Hexagon Human Capital	AIM	£13.54m	69.50p	0.00p
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