LONDON (Alliance News) - Recruitment company SThree PLC Friday said the uncertainty created by the upcoming European Union referendum has led to a slowdown in its UK business, as it saw "mixed trading conditions" in its first half.
In a trading update, SThree said group gross profit rose 6% at constant currency in the half year to end-May from a year before, as it saw continued strong growth across its ICT business, and a continued strong performance from Continental Europe.
However, this was offset by falls in Banking and Finance, which Sthree attributed to the EU referendum, and in Energy. Excluding Energy, gross profit rose 11% year-on-year.
SThree said it has moved to address some "short term execution issues" in its US ICT and Life Sciences contract businesses, although these businesses continued to report good growth.
"Looking ahead, the continued momentum of our Contract business and improved Permanent yields give us a solid base from which to grow in a macro-economic environment which remains uncertain; in addition restructuring measures taken in our Energy, Banking & Finance and UK businesses will benefit future periods. We remain confident that there are significant growth opportunities for us across the diverse geographies and sectors that we serve," said SThree Chief Executive Gary Elden in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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