SThree describes strong first quarter
Sharecast
Published Mar 21, 2023 11:30
Updated Mar 21, 2023 12:14
SThree describes strong first quarter
Sharecast - The FTSE 250 company said contract net fees saw 8% growth on the year across all regions, now accounting for 81% of group net fees, up from 77% in the first quarter of the 2022 financial year, and 78% in the fourth quarter.
That growth reflected the company's shift from permanent to contract roles in several markets.
Meanwhile, permanent net fees declined by 12% year-on-year, influenced by market conditions, performance in the US and the life sciences sector.
In the three largest markets, which contribute 73% of net fees, Germany and the Netherlands experienced growth of 7% and 4% respectively, while the US faced a 6% decline.
Technology and engineering sectors showed strong performance with 8% and 19% growth respectively, but life sciences struggled, with a 15% decrease.
The contractor order book increased by 5% year-on-year, a slower growth rate compared to the 19% uptick in the fourth quarter.
SThree said it maintained a robust balance sheet, with a net cash position of £64m as at 28 February, compared to £41m a year ago, and £65m in November.
“We have continued to make progress against our clear strategy which is centred on an analytical and fact-based approach of knowing where to play and playing where we can win,” said chief executive officer Timo Lehne.
“Our targeted investment in talent and digital infrastructure is progressing as planned, positioning the group to scale with sustainable margins, in line with our 2024 ambitions.”
Lehne said the company’s long-term opportunity was unchanged, underpinned by structural megatrends driving an “acute need” for “scarce” STEM talent.
“We are closely monitoring lead indicators across our markets as we navigate challenging macro conditions.
“Supported by a resilient business model and robust financial position, we remain well positioned to source and place the best STEM talent the world needs.”
At 1130 GMT, shares in SThree were up 0.35% at 434p.
Reporting by Josh White for Sharecast.com.
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