Headhunter Whitehead Mann has moved closer to breaking even, following a disastrous 2004, which saw the company lose nearly £9m.

Now listed on the AIM market, Whitehead Mann lost £1.8m before tax, an improvement on last year’s loss of £9.5m.

The results were in line with expectations and the firm has reduced its overheads by 25% following a restructuring programme, which is now largely complete.

“We continue to make progress in implementing our strategic plan,” said chairman Sir Colin Southgate. “The board believes that the group is now entering a more stable period and is starting to see the benefits of concentrating on its strengths.

“We have, however, set tough targets for the second half and will need to maintain our focus and commitment if we are to meet them.”

The firm gave no dividend, but its balance sheet has improved, with net assets of £10.1m compared with a pre-tax loss of £1.8m.