28th Mar 2008 07:01
SThree plc28 March 2008 SThree plc Interim Management Statement SThree plc ("SThree" or the "Group"), the international specialist staffingbusiness, is today issuing an Interim Management Statement covering the periodfrom 3 December 2007 to 27 March 2008. The financial and operational datarelates to the three-month period ended 3 March 2008, being the first quarter ofthe financial year ended 30 November 2008. The Group has continued to record encouraging placement levels during the periodwith the contract and permanent sides of the business both posting strong growthon the equivalent period in 2007. The Board is pleased with the Group's overallperformance which is in line with its expectations and internal key performanceindicators (KPIs)*. At the end of the first quarter SThree had 5,581 active contractors, an increaseof 21.6% on the prior year (2007: 4,589). Average contractor gross profit perday rates also remained strong in the first quarter of the year. During the first quarter SThree made a total of 2,289 permanent placements, anincrease of 21.6 % over the prior year (2007: 1,881). Average placement feeshave continued to improve. Both UK and non-UK geographies performed as expected as did the ICT and non-ICTsectors. The performance achieved in the first quarter positions the Group well todeliver a strong result for the year. As in previous years the Group performancewill be weighted significantly towards the second half. This normal level ofseasonality may be somewhat more pronounced in the current year reflecting thephasing of planned headcount growth, with the majority of targeted staffrecruitment expected to take place in the first half. In addition, as announcedin the preliminary results, the Group will recognise a £1.9m loss resulting fromthe closure of derivatives related foreign exchange contracts in the first halfresults. Russell Clements, Chief Executive, commented: "Recent trading conditions remain unchanged from the beginning of the financialyear and overall demand for our services remains robust. Candidates continue tohave the confidence to move jobs, creating further vacancies as employers lookto replace them on a like-for-like basis. This factor, coupled with thestructural growth characteristic of our international markets, creates a strongplatform for the Group to continue to post significant growth for the rest ofthe year. "In the light of recent events, demand in the investment banking market remainssubdued. However, these markets are not of sufficient significance to the Groupto have a major negative impact on the overall performance of the Group. Weremain aware of concerns that negative sentiment could spread beyond thefinancial arena, but have yet to see any evidence of this actually happening.That said, the Group's seasoned management team is closely focused on ensuringthat our strategy remains consistent with the prevailing market conditions." All Data sourced from SThree MIS. * KPIs include Drop out Rates, Time to Hireand Interview to Placement ratios SThree is hosting an analyst conference call today at 0830 GMT. The dial innumber is + 44 20 3003 2666 and the password is SThree. - Ends - Enquiries: SThree plc 020 7292 3838Russell Clements, Chief Executive OfficerDavid Tilston, Interim Chief Financial Officer Citigate Dewe Rogerson 020 7638 9571Kevin Smith / Nicola Smith Notes to editors SThree, founded in 1986, is an international specialist staffing business,providing both permanent and contract staff to a diverse, client base of wellover 6,000 clients. From its well-established position as a major player in theinformation and communications technology ("ICT") sector the Group has broadenedthe base of its operations by building fast-growing businesses serving thebanking and finance, accountancy, human resources, engineering, energy andpharmaceuticals sectors. Following the establishment of its first business, Computer Futures, in 1986,the Group adopted a multi-brand strategy. SThree currently operates 12separately managed brands, the four largest being Computer Futures, HuxleyAssociates, Progressive and Pathway, and has 33 offices in the UK and 19overseas offices, 15 elsewhere in Europe, the Netherlands, Belgium, France,Germany and Ireland. In 2006, the Group opened its first North American office,in New York, and recently opened offices in Australia, Hong Kong and Dubai. SThree has a selective approach to clients and focuses on high marginopportunities, predominantly within the small to medium-sized enterprises ("SMEs") market and, from its inception, the Group has avoided the high volume, lowmargin business model in favour of a focus on high quality business. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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