By John Revill
ZURICH (Reuters) - Adecco (S:ADEN) said Britain's vote to quit the European Union has had only a limited negative impact on hiring, so far, though it could eventually help the largest staffing company's business in the country as the weaker pound supports exports.
Zurich-based Adecco on Tuesday reported a 4 percent revenue increase from Britain and Ireland, when currency effects were stripped out, during its latest quarter, and said revenue growth had speeded up in October, CEO Alain Dehaze said.
"Overall our UK business has given us good growth and there's good momentum going into the fourth quarter," Dehaze told Reuters in an interview.
The effect of June's Brexit vote had so far been limited to weaker hiring in the financial sector, London and among permanent employees, a trend which the company was keeping an eye on, the executive said.
He said it would take time for Britain to negotiate its exit from the EU, while some companies particularly in the export and tourism sectors were starting to benefit from the weaker pound which makes exports cheaper.
"We have seen no big effects from Brexit elsewhere and we don't expect to for some time, if there are any effects," Dehaze said.
Dehaze's view on Britain echoed that of Adecco's Dutch rival Randstad (AS:RAND), which posted a 1 percent increase in organic revenue from Britain in its latest figures, although U.S. staffing company Manpower (N:MAN) reported a 3 percent decline there.
Adecco on Tuesday reported weaker-than-expected profit in the three months ended Sept. 30, with earnings before interest, tax and amortisation falling 10 percent to 294 million euros (262 million pounds).
Still, shares were 0.5 percent higher in early trading as investors were cheered by a revenue pick-up in September, when sales growth accelerated to 4 percent from a 3 percent rise for the quarter as a whole.
September is seen is as a crucial month for the hiring industry, with employers deciding how many new employees they may need after examining their order books on their return from the summer holidays.
Still Adecco cautioned about an uncertain hiring environment moving forward. Elections are due next year in Germany, France and the Netherlands while Italy will hold a referendum on constitutional reforms in December.
"We are living in a world of volatility and uncertainty, especially with the upcoming elections," said Dehaze.
"Sometimes it can lead to less permanent hiring, that means more temporary hiring," he said. "Sometimes it means less restructuring and large-scale hiring."
