Hexagon’s half-year woes

08-July 2009 | By Colin Cottell

Hexagon announced an increase in net fee income for the year ended 31 March, although as Jonathan Wright, its chief executive told Recruiter, it was “very much a year of two halves” as the company was hit by the downturn in permanent recruitment in the second half.

Wright admitted that the downturn has had an impact on the company’s debt position. Hexagon already has agreed short-term funding in place, with Barclays Bank having the option of converting £2.3m of debt into equity at a price of 48p.

However, Wright was confident that further funding would be agreed. “The banks are very supportive, and we are very well advanced in discussions about a long-term financing deal,” he said. Wright suggested the likely outcome was an extension of the existing convertible. “We just need to do more of that,” he said, emphasising that the increase would only be a “modest one”.

The market appeared relatively unperturbed, with Hexagon’s share price continuing to trundle along the bottom.

Meanwhile, the de-listing of OPD looks increasingly likely after the offer led by chairman Peter Hearn was declared unconditional after the percentage of OPD shares over which Hearn has effective control reached 54.11%.

OPD’s other shareholders now have an additional 14 days to decide whether to accept the offer of 57p a share.

Ian Jermin, an analyst at John East & Partners, told Recruiter: “It’s a done deal. I guess other people will accept the offer. And once they get to 75% they will de-list, which is what they said in their offer document.”