Depends on where the emphasis is wanted
Explanation: "We are looking for new students", said the headmaster. In this case it is a bit more important that the one who spoke was the headmaster (and not someone else). "We are looking for new students", the headmaster said. In this case it is a bit more important that someone did speak. Perhaps an uncomfortable silence was broken or a general thought (about the need for students) was eventually verbalized. Nuances of emphasis aside, Ian, I think that your version in general sounds more natural. Cheers, Elena
| Elena Sgarbo (X) Native speaker of: Spanish
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