SThree (STHR) blamed uncertainty ahead of the upcoming European Union referendum for a slowdown in its UK business, with "mixed trading conditions" highlighted in a first-half trading update.
Activity in the UK's banking and finance sectors slowed, presumably because some employers introduced hiring restrictions ahead of the vote. Curiously, however, the recruiter reported that continental Europe was again its fastest-growing region. Gross profits at the group's contract business were up 11 per cent, while ICT (information and communication technology) profits were up by nearly a fifth year on year. Gary Elden, SThree's chief executive, believes "continued momentum" of the contract business and "improved permanent yields" auger well for the remainder of the year.
