Marlborough International chairman Mr Niall Welch is resigning from the company's board with immediate effect. The recruitment company said Mr Welch was stepping down "for personal reasons". Mr Welch, who has been chairman since June 1997, was not available for comment last night.

Mr Clive Brownlee, a non-executive director, will assume the role of chairman pending an appointment.

Market sources suggested last night that Mr Welch's resignation could be a prelude to the company being taken private, a move it has indicated it is considering.