Scottish recruitment firm Search Consultancy has announced it has scrapped plans to float on the Alternative Investment Market this summer.

Chief executive Grahame Caswell claimed that the valuation of the company from potential investors fell short of expectations.

Investors have become more cautious about the short-term prospects for the UK economy and this has affected their appetite for new share issues, he said.

Caswell said the flotation could still go ahead at a later date: “Trading this year remains on budget with net fee income over 20% ahead of last year and our growth ambitions remain unchanged.”