Whitehead Mann’s horror story has taken an even more desperate twist, with the company warning that revenues could be £4.5m below market expectations.

The headhunting firm has even admitted that it could de-list from the London Stock Exchange and join the less heavily scrutinised AIM market.

Collapsed takeover talks at the end of last year had destabilised the firm further, a trading statement said. The uncertainty created by rival headhunters sizing up the company as an acquisition target had disrupted new business and reduced the number of new assignments in January, it added.

This had led to the board restructuring the firm in a bid to restore its finances. Operations and management were reorganised into two divisions, dealing with financial services and consumer and industrial sectors respectively.

The firm looks likely to relocate its three London offices under one roof by September to save cash. It will also seek to reduce its commitments in the US, where a botched expansion plan contributed to the current crisis.

The company plans to update shareholders about its plans to move to AIM before Easter.

Chairman Sir Colin Southgate commented: “We are out of the uncertainties of the offer period. The approach being taken has the full support of the board. We are determined to match the firm’s market leading brand with sound financial performance.”

Investors were less confident, however, and shares fell to 62.5p, a sixth of their value a year ago.