InterQuest Global issues Brexit profit warning

27th Jun 2016 15:03

(ShareCast News) - Specialist recruiter in the technology, analytics and digital market InterQuest Global posted a trading update on Monday, ahead of its interim results for the six months to 30 June, and warned of Brexit-related uncertainty.The AIM-traded firm said that, in light of the less-than-certain situation in the run up to the EU referendum, it experienced variable trading with clients delaying hiring decisions.It said that the result of the referendum is now expected to prolong the period of uncertainty and, while it was too early to predict the longer-term impact, InterQuest expects trading conditions in the wider recruitment sector to remain challenging for at least the rest of the current year.The company claimed to be 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 InterQuest now expected group net free income and EBIT for the current financial year will be materially below market expectations."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," said non-executive chairman Gary Ashworth."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."