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Recruiter InterQuest warns on fees as Brexit hits financial services unit
August 29, 2017 / 7:38 AM / 23 days ago

Recruiter InterQuest warns on fees as Brexit hits financial services unit

Aug 29 (Reuters) - British technology-focused recruiter InterQuest Group said on Tuesday that challenging market conditions in financial services, one of its core markets, would materially impact net fee income for the year.

The company, which places people in temporary and permanent jobs in Britain, Europe and North America, said in June that it was facing challenges because of Britain’s vote to leave the EU and the outcome of the general elections.

Recruitment companies have faced a challenging London market over the past year as Brexit uncertainty causes companies to hire fewer people and candidates move jobs less frequently.

Hiring in the financial industry has particularly taken a hit, even as a number of finance companies have committed to moving some operations to continue serving clients in the single market.

“Market conditions in one of the company’s core markets, financial services, remain challenging, specifically in the contracting market which is experiencing pressure on margins,” InterQuest said in a statement on Tuesday.

The result is that the company is more reliant on fees from permanent placements which are more volatile.

InterQuest said it expects earnings before interest, taxes, and amortization (EBITA) to be about 3.1 million pounds ($4.02 million) for the year ending Dec. 31.

Shares in the AIM-listed company were down 15 percent at 38 pence at 0718 GMT. ($1 = 0.7717 pounds) (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Sunil Nair)

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