US-based international executive recruitment firm Heidrick & Struggles (HSII: NSQD) yesterday reported net revenue for the second quarter ending 30 June 2017 of USD 152.2 million, an increase of 2.3% or 4.1%  in constant currency

Operating income declined from a profit of USD 11.7 million in Q2 2017 to a loss of USD 28.4 million.

"Our 2017 second quarter results reflect solid performance in our core business, Executive Search, and strong growth in Leadership Consulting," Krishnan Rajagopalan, Heidrick & Struggles President and Chief Executive Officer, said. "Going forward, we will integrate our Leadership Consulting and Culture Shaping operations into a single business, Heidrick Consulting, which will provide a comprehensive service offering that will help our clients accelerate their performance. We have built a scalable foundation for Heidrick Consulting through the development and acquisition of relevant tools and intellectual property, and are now in a position to drive operational efficiencies and move to a better trajectory of profitable growth."

In the first quarter, the company reached a settlement with Her Majesty's Revenue & Customs ("HMRC") in the United Kingdom regarding HMRC's challenge of the tax treatment of certain contributions made to Employee Benefits Trusts ("EBT") between 2002 and 2008. This settlement resulted in $1.5 million of salaries & employee benefits expense. In the second quarter, as noted above, the company recorded a non-cash impairment charge of $39.2 million in the second quarter to write off the carrying value of intangible assets and goodwill related to its Culture Shaping business.

 Heidrick and Struggles also reported revenue for the first six months of the year with consolidated net revenue of $292.2 million, an increase of 4.7% from $279.1 million in the first six months of 2016.

The company is forecasting third quarter 2017 consolidated net revenue of between $148 million and $158 million. This forecast is based on the average currency rates in June 2017 and reflects, among other factors, management's assumptions for the anticipated volume of new Executive Search confirmations, Heidrick Consulting assignments, the current backlog, consultant productivity, consultant retention, and the seasonality of its business.

"As a trusted advisor to our clients, we will increasingly combine distinctive, data-driven talent, leadership and culture solutions to accelerate the performance of the world's most influential organizations. We will continue to develop Heidrick Consulting to deliver exceptional and relevant advisory services as a full complement to our Executive Search business," Rajagopalan said. "We firmly believe our clients, our employees and our shareholders also will benefit from the operational efficiency of our integrated services. We see great opportunity ahead and are focused on positioning the firm for sustainable, profitable growth."

In trading yesterday, Heidrick & Struggles shares closed $22.20, down 0.22% on the day and 27.82% above the 52 week low of $17.37 set on 8 November 2016. Based on its current share price the company has a market value of $415.95 million.