6th Oct 2016 13:13
LONDON (Alliance News) - Prime People PLC Thursday said its full year profit may be hit, and expects to report a fall in interim pretax profit, although it said it has "reasonable expectations of an encouraging start" to its second half.
The recruitment services company will report its results for the half year to the end of September on November 9, and said it expects to report a pretax profit of not less than GBP700,000, below the GBP1.1 million it reported the prior year.
This is as a result of a planned increase of Prime People's cost base during the half as it has invested in new business lines, its contract business and overseas offices. This has been compounded by flat net fee income for the half, as a result of softened market conditions in the UK following the vote to leave the European Union in June.
International businesses performed "particularly well" in the half, however, contributing a greater proportion of group net fee income then they have historically, Prime People said.
Prime People cautioned that, with the potential for further market uncertainty, and the increased fixed cost base, its full year profit may be hit.
The company said it will continue to monitor market conditions carefully, and "if necessary will respond appropriately but without unnecessarily jeopardising the future growth potential that investing in the business provides."
Shares in Prime People were down 7.5% at 86.04 pence Thursday, having fallen 30% in the year to date.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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