By Li-mei Hoang
LONDON (Reuters) - British firms are likely to delay hiring decisions ahead of a referendum on EU membership, the head of recruitment firm Hays (L:HAYS) said on Wednesday, adding growth in other parts of the world should offset any weakness.
Chief Executive Alistair Cox told Reuters he was mindful of the effects that Britain's June 23 referendum would have on his clients but Hays maintained a positive outlook after it posted an 8 percent rise in underlying net fees in the first half of its financial year.
The company, which places workers in areas such as finance, construction and IT, said it had seen strong growth from regions like continental Europe and the rest of the world, though Britain and Australia slowed towards the end of 2015.
The cautious note weighed on Hays shares which fell six percent by 0950 GMT and are down 20 percent so far this year.
"There is uncertainty around the world, every time there's any election there will be a period where clients and candidates step back and slow down their decision making," said Cox.
"We saw it with the Scottish referendum (in 2014), we saw it with the general election (last year), and I'm sure we will see it with an EU referendum that is imminent here."
Group net fees rose to 397 million pounds ($555 million) for the six months ended Dec. 31, from 384 million pounds a year earlier, an 8 percent rise on a like-for-like basis.
The UK and Ireland, which accounts for a third of the business, posted net fee growth of 3 percent.
($1 = 0.7145 pounds)