(Reuters) - Recruitment firm PageGroup Plc (L:PAGE) said it was uncertain what impact Britain's decision to leave the European Union is having on its employment markets although it had already seen some fall-off in demand in the lead-up to the vote.
Reporting a 12 percent increase in its first-half operating profit to 47.1 million pounds ($61.1 million), PageGroup said it had already cut costs by reducing its UK headcount by 3 percent in the first half as some employers in the higher-salary end of the market suspended hiring plans before the referendum.
It said revenue in the UK, which accounts for some 25 percent of the group's business increased 1.6 percent to 167 million pounds in the first six months, as clients continued to hire at the lower salary levels. But trading at its Michael Page division handling higher paid appointments caused 1.3 percent slip in UK gross profits, to 74.8 million pounds.
"There is clearly an increased degree of uncertainty in the UK following the outcome of the EU Referendum, but it is too early to say how the result will impact our results going forward," the company said in its statement.
"We have a proven track record of being able to manage our headcount and costs effectively throughout the economic cycle, and it should be noted that the UK is a more resilient market due to its size and maturity."
Shares in PageGroup were down 0.7 percent at 348 pence by 140 GMT.
Businesses typically tend to hire temporary staff rather than take on more permanent employees in times of uncertainty. This has also driven demand from companies for high-powered troubleshooters to help them navigate through uncertain times.
Recruiters such as PageGroup, Hays Plc (L:HAYS), Robert Walters Plc (L:RWA) and SThree Plc (L:STHR) are often seen as a gauge of the economy because people tend to switch jobs more frequently when confidence levels rise.
Since the vote SThree has also said that the UK market saw the uncertainty ahead of the referendum impacting client hiring, while Robert Walters has also said that the UK market has seen some impact.
PageGroup's share of profits from permanent placements had dipped to 76 percent in the first half this year from 78 percent last year.
However, PageGroup pointed to its performance in the 2009 financial downturn when it made an operating profit of 10 million pounds despite gross profits falling by 37 percent.
"We have a proven track record of being able to manage our headcount and costs effectively throughout the economic cycle, and it should be noted that the UK is a more resilient market due to its size and maturity," the company said on Thursday.
PageGroup reported a gross profit of 299.2 million pounds ($389.47 million) in the half-year ended June 30, up from 280.9 million pounds last year, while its pretax profit rose 16 percent to 46.9 million pounds.