(Reuters) - UK-based recruitment firm Hays Plc (L:HAYS) warned of lower first-half operating profit, as it struggled with a hiring squeeze in some of its largest markets including UK, France and Australia in December that slowed net fee growth.
Global recruiters have been pummelled by widespread uncertainties around the globe, ranging from Brexit worries in the UK to protests in Hong Kong and poor sentiment surrounding the trade war between the United States and China.
Hays, which has seen increasing signs of weakening business confidence in Germany and Britain, reported a 4% drop in like-for-like net fees in the second-quarter, also blaming a stronger pound for the fall.
"Growth slowed markedly in December, driven by specific events in key markets: general strikes in France, tragic Australian bushfires and the UK election," Chief Executive Alistair Cox said.
"Each event impacted markets already facing challenging economic conditions and low business confidence."
The company said it expects first-half 2020 operating profit to be about 100 million pounds ($130.36 million). It reported a profit of 124.1 million pounds in the first half of last year.
Hays, which has been expanding in Europe, Asia and parts of the Americas, said it reviewed its cost base in detail in the second quarter, including that of its German business.