Steppingstone Associates, an operating company in the recruitment sector, has floated on AIM as well as acquiring Inspired Selection.
The move towards AIM was led by the chief executive Steve Hyde, of recruitment firm Hamblyn, who wanted to raise money for acquisitions and established Steppingstone as a vehicle to gain funding and perform buy-ups.
To prepare for the float he boosted his team by bringing in chartered accountant Andy Mintern, a regional director at Secantor, which provides businesses with part-time finance directors and services. Mintern is now a member of the company’s board.
After he and Mintern had prepared the business for funding the company arranged for a loan with Barclays Bank to buy Inspired Selection.
With the funding and plan in place the company was then ready to approach the City and prepare for a float.
Coming from a background in advertising, he was an executive at Saatchi and Saatchi and founder of Zenith Media, he says that he enjoyed the pitching process. However, he was talking to financial institutions during a dark period during which banks were still reeling from the credit crunch.
Nevertheless, Hyde says he was received well and was able to raise the money required for both loan and float.
More acquisitions are now expected for Steppingstone over the coming year and the company is sure there are plenty of good targets.
“It can be difficult for many owners of recruitment companies to exit as they often come from a specific industry and if they leave the experience goes with them,” Hyde says.
“We are interested in buying companies with a similar ethos to ours and retaining their brands and expertise.”
The company is now hiring more staff and Inspired has moved to the same building as Hamblyn to ease the integration and management of the business.
© Crimson Business Ltd. 2008
