FINANCIALS: Heidrick & Struggles sees slight rise in revenue

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Global executive search firm Heidrick & Struggles has seen a marginal increase in revenue for the quarter ended 30 June 2017.

The group’s results, published yesterday, reveal consolidated net revenue (revenue before reimbursements) rose 2.3%, or $3.4m (£2.6m), to $152.2m from $148.9m in the corresponding quarter last year. 

Across the business, the group’s executive search division posted an increase of 2.9% in net revenue year-on-year, or $3.8m, to $134.5m from $130.7m, with highest growth recorded by its European business and its industrial, education & social enterprise, healthcare & life sciences and financial services industry practices.

However, the group witnessed declines in growth for its Asia-Pacific and global technology & services and consumer markets practices.

Meanwhile, its leadership consulting business saw net revenue increase 35.3%, or $3m, to $11.4m from $8.5m in the same quarter last year. However, its culture shaping business saw net revenue decline 35.7%, or $3.5m, to $6.2m from $9.7m year-on-year.

The group also recorded a non-cash impairment charge of $39.2m related to its culture shaping business, which contributed to an operating loss for the group of $28.4m.

In a separate announcement, H&S revealed it plans to bring together its leadership consulting and culture shaping business into one business known as Heidrick Consulting.

The business will offer leadership services across leadership assessment & development, organisation & team effectiveness and culture shaping. The integration of these two businesses will be led by Colin Price, executive vice president and managing partner of leadership consulting, and Mike Marino, executive VP and managing partner of culture shaping.

Commenting on the group’s performance, Heidrick & Struggles president and CEO Krishnan Rajagopalan said: "Our 2017 second quarter results reflect solid performance in our core business, executive search, and strong growth in leadership consulting. 

"Going forward, we will integrate our leadership consulting and culture shaping operations into a single business, Heidrick Consulting, which will provide a comprehensive service offering that will help our clients accelerate their performance. We have built a scalable foundation for Heidrick Consulting through the development and acquisition of relevant tools and intellectual property, and are now in a position to drive operational efficiencies and move to a better trajectory of profitable growth.”

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