Executive search tiddler Constellation stayed in profit for the six months to June, despite volatile markets and the cost of servicing debt. Pre-tax profits came in at £30,000 (£56,000) after a slightly higher interest charge of £58,000 (£56,000), on turnover of £685,000 (£690,000). Net debt eased from £2m to a still-substantial £1.9m. During the first half, revenues were unpredictable rather than consistent and so a tight rein was kept on costs. Constellation successfully clinched work from FTSE 100 players for both executive search and management consultancy - chairman John Bartle confidently predicts further contracts 'of a similar nature' from new and existing clients and says the potential order book looks promising. These figures follow a return to form at the full year when, after years of losses, Constellation turned in a £2,000 profit versus losses of £858,000 on ongoing turnover of £1.25m (£1.1m). But a big concern is the company's recent attempt to tap the market for working capital via a placing - to date, this has been only 'partially successful'. Constellation had only £325,000 cash at the interim stage but £2m due to creditors in the short term, and talks with potential investors continue. Because of this and the hefty debt, we still feel there are far more compelling stocks in the recruitment sector. Avoid.