British firms are likely to delay hiring decisions ahead of a referendum on EU membership, the head of recruitment firm Hays said yesterday, adding growth in other parts of the world should offset any weakness.

Chief executive Alistair Cox said he was mindful of the effects that Britain’s June 23 referendum would have on his clients but Hays maintained a positive outlook after it posted an eight per cent rise in underlying net fees in the first half of its financial year.

The company, which places workers in areas such as finance, construction and IT, said it had seen strong growth from regions like continental Europe and the rest of the world, though Britain and Australia slowed towards the end of 2015.

There is uncertainty around the world

The cautious note weighed on Hays shares which fell six per cent by 0950 GMT and are down 20 per cent so far this year.

“There is uncertainty around the world, every time there’s any election there will be a period where clients and candidates step back and slow down their decision-making,” said Cox.

“We saw it with the Scottish referendum [in 2014], we saw it with the general election [last year], and I’m sure we will see it with an EU referendum that is imminent here.”

Group net fees rose to £397 million for the six months ended December 31, from £384 million a year earlier, an eight per cent rise on a like-for-like basis. The UK and Ireland, which accounts for a third of the business, posted net fee growth of three per cent.