Reed braced for clash over choice

CONTROVERSIAL nursing recruitment group Reed Health has finally drafted in a chairman to replace former trade union baron Lord Sawyer.

The group, split asunder by main backer Alec Reed's shock management coup last autumn, will now be chaired by Barry Hartop, the former chair of the Locum business it bought 16 months ago.

Hartop's appointment is unlikely to calm City investors angry over Reed's behind-the-scenes influence - he was appointed by his son James, a non-executive at the firm and close ally of Sawyer.

Chief executive David Fennell, who replaced coup victim Christa Echtle in January, said he was pleased to have Hartop on board and insisted the management was working well together.

He added that demand for temporary staff had begun to recover from the downturn that caused the group to warn in June that full-year profits would come in below expectations.

Figures showed pre-tax earnings rose 13% to £5.6m in the 12 months to 30 June, on turnover of £116.2m, up 48%.

The dividend is up 17% at 2.35p, meaning a payout of £770,000 for Alec Reed and his family.