Lead-up to Brexit vote hits SThree profits

Recruitment company SThree posted first-half numbers on Monday, with an 8% fall in profits being attributed to managers putting hiring decisions on ice in the lead-up to the EU referendum.

The London-listed recruiter said group gross profit from permanent placements fell 2% on constant currency terms in the six months to 31 May, with long-term employment decisions particularly hard hit by the global weakening in the financial sector at the start of the year, and Brexit uncertainty in the lead-up to the cote.

SThree has restructured its permanent and banking and finance businesses as a result of the “challenging” market conditions.

Fresh rate caps on public sector businesses created an additional impact on its UK business, its board said.

“While it is too early to assess the impact of the EU referendum result, the effect on client and candidate confidence in our UK business will become clearer as we trade through our seasonally more important second half,” said CEO Gary Elden.