SThree's shares flop as Brexit jitters slow its UK business

(ShareCast News) - Shares in SThree flopped almost 10% after a first half trading update revealed Britain's in-out European Union referendum on 23 June had caused a slowdown in its UK business, while weak Energy and Banking & Finance markets had dented its US growth rate.The specialist staffing company saw first-half gross profit rise to £119.7m, up from £110.5m a year earlier, amid mixed trading conditions."The uncertainty created by the forthcoming EU referendum has led to a slowdown in our UK business, and weak Energy and Banking & Finance markets impacted our US growth rate," SThree said in its update."Our US ICT and Life Sciences Contract businesses continued to report good growth but we have moved to address some short term execution issues," it added, expecting these measures would start to take effect over the second half.Looking ahead, SThree said the continued momentum of its Contract business and improved Permanent yields give it a solid base from which to grow in a macro-economic environment that remained 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."