InterQuest states EU referendum uncertainty may impact on trading conditions
InterQuest Group has released a trading update ahead of its interim results for the six months to 30th June 2016, which will be announced on 6th September 2016.
In light of the uncertainty in the run up to the EU referendum, the company states that it has experienced variable trading with clients delaying hiring decisions. The result of the referendum is now expected to prolong this period of uncertainty and, whilst it is too early to predict the longer term impact, the company expects trading conditions in the wider recruitment sector to remain challenging for at least the remainder of the current financial year.
The company says it is somewhat protected from wider recruitment trends due to its focus on hard to find niche candidates in rapidly growing sectors in the new digital economy, but as a result of the wider market conditions, the company now expects that group net fee income and EBIT for the current financial year will be materially below market expectations.
Gary Ashworth, non-executive chairman, commented, "Whilst I am delighted with the initiatives put in place by the new management team, and subsequent client wins, the months leading up to the EU referendum have been challenging and market uncertainty is now expected to continue following the outcome of the referendum. Operationally the Company is in good shape but at this current time forecasting the impact of political and market developments is challenging and the management team have made a cautious assessment of the circumstances."