By Michael Shields and Rupert Pretterklieber
ZURICH (Reuters) - Adecco (SIX:ADEN) has not been hit so far by Britons' vote in June to leave the European Union, Chief Executive Alain Dehaze said on Wednesday, forecasting modest growth ahead for the world's biggest staffing group.
"We don't see any material impact of Brexit, either in the UK or in the neighbouring countries and the UK's trading partners," he told Reuters after the company posted in-line results for the second quarter.
Adjusted for trading days, Adecco generated organic revenue growth of 3 percent in the quarter, in line with rival Randstad. Volume growth in July was similar to June, it added.
Organic revenue in the United Kingdom and Ireland, its third-biggest market, rose a headline 6 percent as growth in professional staffing and information technology helped offset a decline in finance and legal.
In France, its biggest single market, growth was recovering after a May marred by strikes and bad weather.
"We have seen a continuation of this modest growth and slow recovery in France in the month of July and also since the beginning of August," Dehaze said, adding September would be key as clients return from holidays and size up their order books.
Staffing companies are seen as bellwethers for the broader economy, with companies often taking on temporary staff at the beginning of a recovery or releasing temporary workers when a downturn begins to bite.
Adecco's stock has been one of the weakest performers among Swiss blue chips this year, losing more than a fifth as investors took fright over uncertainty in the wake of events like the Brexit vote. The shares were up 1.6 percent at 55.55 Swiss francs at 0836 GMT.
Dehaze gave a moderately upbeat assessment of market conditions. "The growth is continuing. It is modest growth, 4 percent organic, but we don't see any slowdown with a France that is robust, a little bit softer in North America."
Revenue in North America eased 1 percent in the quarter, and its operating margin there also contracted year on year.
Dehaze said Adecco was "absolutely not" under pressure to act after Randstad, the second-largest staffing group, announced plans to buy Monster Worldwide, the dotcom-era survivor that owns Monsterboard and Jobs.com, for $429 million in cash and assumed debt.
Adecco already had a strong digital offering, he said, and was teaming up with partners pursuing disruptive technologies in areas such as big data and artificial intelligence.
Adecco's net profit rose to 190 million euros (162 million pounds), just ahead of the average estimate of 188 million euros in a Reuters poll of analysts.
Sales rose a reported 2 percent to 5.70 billion euros, in line with the poll estimate. Its margin on earnings before interest, tax and amortisation and before one-offs improved 10 basis points to 5.0 percent.
Netherlands-based Randstad reported 11 percent higher core earnings during its second quarter, while Wisconsin-based Manpower cited softening demand when it posted a 3 percent increase in revenue last month.
