Prime People PLC (LON:PRP) shares slumped in mid-morning trading Friday as it reported an expected drop in pre-tax profits for the full year as a result of acquisition costs while its net fee income creeped up slightly in the period.
The AIM-listed recruitment business reported a pre-tax profit of £1.19mln, down from £1.9mln the year before while net fee income rose slightly to £13.15mln from £13.1mln.
In a trading update on May 2, the group had said its operating profit for the year would be reduced as it was impacted by £102,000 of acquisition costs from its purchase of Command Recruitment Group as well as increases in staff costs and investment in its customer relationship management systems.
The group also left its final dividend at 3.25p, the same as the year before.
Asian expansion
In its outlook, the company said it was continuing to advance its overseas strategy by extending its presence in the Asia market and expected an increased contribution from the area in 2019, while also noting Brexit uncertainty in the UK and turbulence in overseas markets.
Following the profit warning in May the firm saw its shares drop 3.8% to 74p from 77p, although it has since recovered to 84.5p at last close on 21 June.
Prime People shares were down 6.5% at 79p.
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