13th Jul 2015 07:20
LONDON (Alliance News) - SThree PLC Monday said it is confident of finding "good" growth opportunities across the company in the second half of its financial year, even as the staffing business warned of a "challenging" outlook for the energy sector.
Speaking as the company reported a GBP14.1 million pretax profit for the six months ended May 31, compared with a GBP8.2 million pretax profit in the corresponding period of the prior year, Chief Executive Gary Elden said the group's activities in information and communications technology, as well as its life sciences, helped to offset the weakness in energy. The interim dividend remained at 4.7 pence per share.
First-half revenue increased by 18% to GBP403.6 million year-on-year, while administrative expenses rose by 5% to GBP96.4 million.
Reporting " good progress" with the company's contract business - a strategic priority for SThree - Elden said investment in contract headcount will be a "key focus" in the second half of the year. The CEO also wants to rebuild productivity in the company's permanent staffing business.
Elden highlighted SThree's Americas business as one of its "most exciting" opportunities for growth.
"Looking ahead, the trading environment remains positive in the majority of our territories. While the outlook for Energy remains challenging and foreign exchange continues to be a headwind, we are confident that there are good growth opportunities available to us across the geographies and sectors we serve in the seasonally more important second half," Elden said.
Elden's mention of foreign exchange pressures came as SThree said its first-half operating profit was reduced by about GBP900,000 due to currency movements.
SThree blamed the weakening of the euro, partially offset by the strengthening of the dollar, for the hit to profit.
Shares in the company were up 1.0% at 374.40 pence early on Monday morning in London.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
STHR.L