The performance of recruitment companies has been less than impressive in recent years. A common strategy has been to buy small businesses with a view to cutting costs and maximising efficiencies by bringing those companies under one banner. In some cases this has worked, but in many others, the execution has been poor, leading to cost over-runs and a fall in profits.

There is no doubt the recruitment industry lends itself to growth by acquisition. Apart from a few big players, the industry is fragmented and consolidation is still occurring. Some companies, large and small, have investment appeal, but others still appear to be struggling to overcome internal problems.