Headhunter Hexagon Human Capital says talks with an unnamed potential bidder ‘have now been terminated’.

The AIM-quoted executive search specialist confirms that the discussions, initiated in February, have not resulted in a proposal the board could recommend to shareholders. At the same time, Hexagon has issued a trading statement, suggesting net fee income for the newly completed financial year to March will grow nearly 13 per cent to around £22 million, with earnings before interest, tax, depreciation and amortisation showing an increase of not less than 3.5 per cent to £5.9 million.

The company, steered by chief executive Jonathan Wright, warns that trading conditions worsened in the second half-year and says it expects net fee income in the last quarter to March to be below the previous year’s last quarter. Hexagon blames this mostly on a shortfall in its executive search business, arguing that its senior interim management ‘remains robust’.

Meanwhile, the company has reduced its bank debt by £1.1 million to £8.9 million, cut its deferred consideration liabilities from £15 million to £6.3 million and is restructuring its bank facilities by issuing convertible loan notes to Barclays. Floated at 165p two years ago, Hexagon shares soon reached 196p, but have now fallen all the way to 31.5p, valuing the company at £6.1 million.