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Upton & Southern

Companies: CST   
27/10/1999

Headhunter chairman Andrew Garner intends to 'build a constellation of synergistic human resource services' from this ailing regional department store. Citing renumeration consulting, training and interim management as some of the services he hopes to offer from 'Constellation' plc, Garner has to content himself with the current executive search offered by Garner International (50.1% of which is owned by U&S) until the sale of the group's retailing outfits is complete. With interim pre-tax losses up 400% to £433,000, on turnover up a quarter to £17m, the move to support services seems a more sensible focus. The development of Garner's 'holistic' vision will be acquisition-based (with possible firms already identified) and will focus on top levels of management, where the fees and margins are higher. Garner hopes to compete with existing well-known brands by taking advantage of its position as a newcomer. The various industry limits and conflicts of interest that arise when market leaders service all the big companies in a specific sector, prohibit them from poaching from the very clients they serve. Thus, U&S, free from this cumbersome baggage, and pledging to work for only a few companies in each sector, can recruit from a wider base. At least that's the plan.

Market cap: £5.1m
PE Average: 17.41
PE Forecast: n/a
PE Historic: n/a
Share price: 2.5p

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