Prime People buoyed by international arm

Prime People says overall net fee income for the six months to the end of September was line with a year ago.

The group says that as anticipated in its announcement of 23 June, market conditions were affected by the headwind resulting from the EU referendum and softened in the UK in the first half, resulting in some slowing of its more mature vertical markets.

But it says international businesses have performed particularly well and contributed a greater proportion of group net fee income than they have historically.

An update says: "Consistent with our strategy we have continued to invest in new business lines, in our contract business and in the overseas offices during the period.

"This planned expenditure has increased the cost base during the first half which, combined with Group net fee income being in line with the previous half year, will result in a profit before tax that will be lower than for the same period in the prior year.

"Currently we expect to report an operating profit before tax of not less than £0.7 million.

"Based on the trading conditions that we are currently experiencing in the UK we have reasonable expectations of an encouraging start to the second half. However, the potential for further market uncertainty and the increased fixed cost base may affect full year profit."

At 2:25pm: (LON:PRP) Prime People PLC share price was -6.5p at 86.5p