Headhunter Whitehead Mann chops 10 per cent of staff

The recruitment company Whitehead Mann yesterday named Stephen Lawrence as its new chief executive as it announced a cost-cutting programme to reduce staff numbers by 10 per cent had cost it £2m.

The moves came as the company painted a gloomy picture of trading going forward. "The outlook for the business continues to be uncertain," the company said and shares in Whitehead Mann closed down 9.6 per cent, or 12.5p, at 117.5p.

Mr Lawrence, who joins Whitehead Mann from the South African-listed IT firm Datatec, replaces Gerard Clery-Melin who is stepping down for "health reasons" after three years in the position.

Mr Clery-Melin will remain with the company in the post of chairman, Continental Europe, where his role will be to focus on business development.

The appointment came as Whitehead Mann announced profits had more than halved. In the six months to 30 September, pre-tax profits plunged to £2m from £4.3 a year before on sales of £34.5m, up from the previous year's £31.5m.

Operating profits, before the £2m charge to cover the 10 per cent headcount reduction and a £1.1m goodwill amortisation charge, were £5.4m, up from £5.2m.

The company said its financial services business had declined in the half year and warned it did not see a "material" improvement in that market until the middle of next year at the earliest.

Its telecoms and media business, however, grew "strongly" in the half year and the outlook there remained "positive", the company said.

It said its assessment business started the half year "slowly" although noted that the pipeline had improved over the past few months and that the business was likely to perform better in the second half of the year.

Whitehead Mann said that it was continuing to explore opportunities to strengthen its consulting team further while retaining "close control" of its cost base. It said it would manage its cost base "in line" with changes in market conditions.