22nd Jul 2019 08:42
(Alliance News) - Recruiter SThree PLC on Monday said it is on track after an "encouraging" first-half to its financial year.
For the six months to May 31, pretax profit climbed 27% to GBP22.7 million on a reported basis and rose 18% adjusted to GBP24.0 million.
Revenue growth was 12%, with the figure reaching GBP653.3 million. Net fees rose 10% to GBP163.0 million, with Contract climbing 13% to GBP121.1 million but Permanent remaining flat at GBP41.9 million.
SThree has increased its interim return to its shareholders by 8.5% to 5.1 pence per share.
"This set of results, the first since I joined the group, demonstrates that our strategy is putting SThree ahead of the field," said Chief Executive Mark Dorman.
"The engine room of our growth has continued to be the key strategic focus areas of our business, progress within the key STEM markets, particularly the US and Continental Europe, as well as an increased Contract weighting."
SThree mainly focuses on STEM markets, comprising Science, Technology, Engineering, and Mathematics.
Net fee growth in Continental Europe was 13%, with Contract especially strong, while in the US, net fees rose 13%, despite a 10% drop in Permanent net fees.
SThree registered a drop of 9%, however, in UK & Ireland net fees, with Contract down 6% and Permanent 25%. This, it said, reflects "continued macroeconomic and political uncertainty".
In Asia-Pacific & Middle East, net fees climbed 13%, with both sectors doing well.
"Notwithstanding the macro-economic backdrop in certain regions, the group remains well-positioned as we enter the second half, and the board's expectations for the full year remain unchanged," said Dorman.
Shares were 3.0% higher on Monday morning at a price of 278.99p each.