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Shares in recruitment group Hays fell by almost a fifth on Tuesday after it warned that its half-year profits were likely to come in below expectations.
The UK-based company blamed a “clear slowdown” in global markets, which led to a 10 per cent drop in fee income in the three months to December.
The FTSE 250 company said permanent hiring in particular weighed on profits “as client and candidate decision-making slowed”, but temporary placements were also hit “as we did not see our normal seasonal step-up in worker volumes”.
Hays said it expected first-half profits to be £60mn, below current market expectations.
Dirk Hahn, chief executive, said: “It is too early to say if December’s weakness reflects a sustained market slowdown or some placement deferrals, however, we expect near-term market conditions to remain challenging.”
Hays shares fell 18 per cent in early trading in London.