- Specialist recruitment business Prime People has said its half and full-year profitability has been 'severely impacted' by the pandemic despite a 'modest increase' in activity since June.

The company confirmed that it intends to announce final results for the year ended 31 March 2020 at the end of October 2020 in which it expects to report headline revenue of approximately £23.85m, compared to £24.66m in 2019, and net fee income (NFI) of approximately £15.38m, which is expected to result in a pre-tax profit and of not less than £1.8m.

In its pre-close trading update, the group said its trading has been severely impacted in the first six months of the new financial year.

Chief executive Peter Moore said: 'Our current financial year will be significantly affected by the pandemic as a consequence of material reductions in NFI and new job instructions.

'In the first six months of trading UK NFI is circa 40% lower than the comparable period last year and job instructions down by 54%. Our Asia business has suffered a circa 26% reduction in NFI and a 26% fall in job instructions.'

He added: 'Since June there has been a modest increase in activity. However, half and full year profitability will be severely impacted. As a result of challenging trading, we expect to take a material reduction in the value of goodwill on our balance sheet.'

At 9:29am: [LON:PRP] Prime People PLC share price was +5p at 48.5p

Story provided by