(Reuters) - Recruiting company SThree Plc (L:STHR) posted an 8 percent fall in first-half UK gross profit, as managers, especially those in the banking sector, put hiring decisions on hold in the run-up to the EU referendum.
SThree said group gross profit from placing people in permanent jobs fell 2 percent in constant currency in the six months ended May 31, as long-term staffing decisions were hit hard by the weakening of the banking and finance market globally and Brexit uncertainty.
Gross profit is a relevant performance indicator for staffing companies as it represents total fees earned from all recruitment activities.
SThree, which places people with financial, energy, banking and pharmaceutical companies, said it had restructured its permanent and banking and finance businesses in response to challenging market conditions.
In the UK, an additional hit had been felt due to the newly-introduced rate caps on public sector business, it added.
"While it is too early to assess the impact of the EU referendum result, the effect on client and candidate confidence in our UK business will become clearer as we trade through our seasonally more important second half," SThree CEO Gary Elden said in a statement.