Shares in the recruitment giant PSD Group tumbled today as it warned investors that its profits were down.

Net fee income for the six months to June 2001 was £24.3m compared with £26m in the six months to June 2000.

The group is preparing an interim profit statement that will be released on 10 September, but reported that pre-tax profits are 'not less' than £5.5m, compared with £10m in the six months to June 2000.

Since it announced results for 2000 in March, PSD has seen a downturn in the electronics, communications and financial services sectors.

CEO Francesca Robinson said: 'At the present time uncertainty in all the markets in which we operate continues, and it remains unclear as to the level of activity that may be expected in the period to 31 December 2001 and beyond.'

According to the statement, the company has 'taken steps to adjust the group’s cost base in line with the current levels of fee income'.

Share prices dropped by nearly 18% (72.5p) to just over £3.32 a share after the news was announced.