This primarily reflects the current market conditions in IT recruitment, Spring's largest area of activity, and the difficulty of predicting when demand will pick-up. This difficulty is compounded by the fact that Spring's financial year straddles 31 December. Consequently, this year's results will show the full impact of any Y2K related slowdown, which appears to have started in August and accelerated in September, and the likely slow pick up in demand in quarter one 2000. Nevertheless, Spring expects to perform relatively well for the remainder of the financial year when compared with its peers. As a result the Board is maintaining its investment programmes to enhance the Group's medium term prospects, particularly given that demand for IT skilled personnel is likely to pick up in 2000.
Spring has a very strong balance sheet, good market positions, and an excellent brand.
It is anticipated that the returns on the investments it has and is making, particularly in IT systems, will be attractive over the coming years.