IT recruiter Lorien has warned that uncertainty caused by a failed takeover attempt has destabilised it.

A statement released to the stock exchange claimed the firm was destabilised as a result of prolonged takeover talks with a mystery buyer.

The talks weakened the trading performance of the firm's resourcing business. Key staff have left because of the uncertainty surrounding the group's future, affecting order levels.

Important senior management posts have also been left vacant, meaning the board expects profits to be below market expectations.

The statement added: "Although the board recognises there could be some disappointment that talks have terminated, it welcomes the clarity this will provide to the group's employees and management.

"The board hopes that with the uncertainty removed, the current downturn in trading performance will only be short term in nature."