Longbridge International, the executive search firm, received a boost today when independent research claimed the company was undervalued.

The note from Hardman & Co said Longbridge was the most cheaply rated stock in the sector.

But the analyst predicted a 10% increase in turnover, with a slight rise in gross margin.

Other executive search firms are set to enjoy an increase in profitability because of the last round of cost-cutting.

The note added: "Many executive search companies are now in the position that they should be able to return to, or increase profitability on the back of flat turnover."