Executive search firms enjoy booming business

Heidrick & Struggles, TMP Worldwide and Korn/Ferry International all report substantial rises in income.

TMP Worldwide saw adjusted net income in its third quarter, ending September 30 this year, grow by 72% to $31.5m (Eu36.5m).

The strong growth in its flagship provider of online recruitment services, monster.com, played a considerable part in the jump in overall commissions and fees to $339.2m.

Monster.com has in turn acquired Jobtrak, an internet player in the arena of college job listings and resumés, with half a million registered users.

This month TMPW also announced the purchase of recruitment firms Search Competence International of Sweden, and Stratascape Inc and Accounting Solutions in the US.

In the UK it recently completed the purchase of the niche legal headhunter Quarry Dougall, for an amount believed to be as much as 45m.

Rival Heidrick & Struggles reported a 46% rise in net income to $10.8m. But the search firm withdrew this year the planned IPO of Leaders Online, its recruiting subsidiary for mid-level executives and professionals.

Leaders Online has had losses in previous quarters that outweighed earnings from warrants.

Last month Heidrick expanded its management appraisal service to a global platform following the success of the business in Europe.

At Korn/Ferry International, the quarter ending July 31 this year has seen the search firm's best-ever first quarter results, with an overall operating profit increase on revenues that rose almost 66% to $173.6m.

This was despite higher losses at Futurestep, its internet-based middle management recruitment business.

Taken on its own, the executive search component of Korn/Ferry's business saw revenues grow by 50.8% to $152.1m, representing more than a 70% rise in operating profit to $11.2m.