OPD seeks funding – will chairman come to the rescue?

(By Anthony Miller - Sunday 17th May 2009 7:30 pm). OPD, the holding company for small string of recruitment companies which includes IT&T recruitment firm PSD, is in all sorts of trouble. After a horrible set of FY results (see Odgers weighs heavily on OPD profits), OPD announced on Friday that the rate of decline in net fee income (gross profit) increased in March and April and was down 30% on March and April 2008. Management warned of a highly dilutive fund-raising if trading fails to improve.

However, the company also advised it was discussing a cash offer from chairman Peter Hearn and other executive managers at 57p per share, valuing the company at around £15m. OPD’s shares were languishing around 40p before the announcement. Hearn already owns 27% of the company, with Schroders the next biggest shareholder (20%).

OPD really has no business being a listed company (on the main market, what’s more, not AIM!). It floated in Feb. 1997 when ITSAs (IT staff agencies) were having their pre-Y2K bonanza, but the party has been over for quite some time. It would be hard to imagine a herd of potential buyers fighting amongst themselves to rescue OPD if Hearn’s bid (if so it is) is not successful.