EU Referendum Hits InterQuest As Company Issues Profit Warning

LONDON (Alliance News) - InterQuest Group PLC Monday said the uncertainty caused by the EU referendum in the UK has caused volatility within the recruitment industry which will continue for the near future, meaning the company's full year results will significantly miss expectations.

InterQuest shares were down 28% to 59.00 pence per share on Monday.

The company, which has been partially shielded from the impact compared to the wider market thanks to the company's focus on niche candidates, said the uncertainty will continue for at least the remainder of 2016 and conceded it is difficult to predict the longer term impact of Brexit.

"In light of the uncertainty in the run up to the EU referendum, the company has experienced variable trading with clients delaying hiring decisions. The result of the referendum is now expected to prolong this period of uncertainty and, whilst it is too early to predict the longer term impact, the company expects trading conditions in the wider recruitment sector to remain challenging for at least the remainder of the current financial year," said InterQuest.

InterQuest said its net fee income and earnings before interest and tax will be "materially below market expectations" in 2016 as a result.

"Operationally the company is in good shape but at this current time forecasting the impact of political and market developments is challenging and the management team have made a cautious assessment of the circumstances," said Non-Executive Chairman Gary Ashworth.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

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