City Comment: Kean Marden_5
28 March 2012
Drawing the short straw to write the City Column that covers the last two weeks of 2011 is a little like landing the graveyard slot on late night radio. It shouldn’t surprise any of you to hear that nothing of note occurred in the recruitment sector over Christmas and New Year.
January 2012
Drawing the short straw to write the City Column that covers the last two weeks of 2011 is a little like landing the graveyard slot on late night radio. It shouldn’t surprise any of you to hear that nothing of note occurred in the recruitment sector over Christmas and New Year. So, in an act of desperation, I thought I would instead focus on the main share price winners and losers during the past 12 months. Regular readers of this column won’t be surprised to hear that Healthcare Locums comfortably headed the losers’ table last year with a whopping 97% decline in the share price. On 25 January, Healthcare Locums’ shares were suspended from trading on the London Stock Exchange after the board issued a statement in which it noted that serious accounting irregularities had been brought to its attention and the financial performance of the business would be materially below market expectations. A rather public exchange of stakeholders’ views in the industry and mainstream media ensued but the balance sheet was refinanced through a share placing at 10p in the autumn.
Other notable decliners included Morson (-63%), Savile Group (-62%) and Empresaria (-61%) after the latter was impacted by a legal ruling relating to certain collective labour agreements in Germany. However, a couple of industry heavyweights weren’t far behind with Robert Walters and Hays both down 47%.At the other end of the league table fewer than 10 companies managed to post a share price improvement in 2011. Two comfortably headed the pack. Impellam’s shares ended the year up 57%, despite declining from the heady heights of 387p that they scaled in the spring. Kellan closed up 52% after refinancing its balance sheet in February. Elsewhere, Networkers International (+20%) and HR GO (+19%) also deserve acknowledgment..
On a more personal note, I had the privilege of attending the SThree Christmas party once again this year, which is always an incredibly energising event. Congratulations to all the winners, particularly the 2011 top biller who I was surprised to discover is based in Dublin — proof indeed that despite tough economic conditions there are always opportunities. Wishing you all a prosperous 2012.
Kean Marden, head of support services equity research, RBS Global Banking & Markets
Drawing the short straw to write the City Column that covers the last two weeks of 2011 is a little like landing the graveyard slot on late night radio. It shouldn’t surprise any of you to hear that nothing of note occurred in the recruitment sector over Christmas and New Year. So, in an act of desperation, I thought I would instead focus on the main share price winners and losers during the past 12 months. Regular readers of this column won’t be surprised to hear that Healthcare Locums comfortably headed the losers’ table last year with a whopping 97% decline in the share price. On 25 January, Healthcare Locums’ shares were suspended from trading on the London Stock Exchange after the board issued a statement in which it noted that serious accounting irregularities had been brought to its attention and the financial performance of the business would be materially below market expectations. A rather public exchange of stakeholders’ views in the industry and mainstream media ensued but the balance sheet was refinanced through a share placing at 10p in the autumn.
Other notable decliners included Morson (-63%), Savile Group (-62%) and Empresaria (-61%) after the latter was impacted by a legal ruling relating to certain collective labour agreements in Germany. However, a couple of industry heavyweights weren’t far behind with Robert Walters and Hays both down 47%.At the other end of the league table fewer than 10 companies managed to post a share price improvement in 2011. Two comfortably headed the pack. Impellam’s shares ended the year up 57%, despite declining from the heady heights of 387p that they scaled in the spring. Kellan closed up 52% after refinancing its balance sheet in February. Elsewhere, Networkers International (+20%) and HR GO (+19%) also deserve acknowledgment..
On a more personal note, I had the privilege of attending the SThree Christmas party once again this year, which is always an incredibly energising event. Congratulations to all the winners, particularly the 2011 top biller who I was surprised to discover is based in Dublin — proof indeed that despite tough economic conditions there are always opportunities. Wishing you all a prosperous 2012.
Kean Marden, head of support services equity research, RBS Global Banking & Markets
