SThree shares rise despite drop in first-half net fees

SThree PLC on Tuesday reported falling net fees in its first half amid ‘challenging’ market conditions, but the company said its overall performance was ‘stable’ and predicted full-year earnings in line with guidance.

Shares in SThree climbed 8.4% to 242.15 pence on Tuesday morning in London.

The science, technology, engineering and mathematics-focused recruiter expects its performance for the year ending November 30 to be in line with its outlook in December, 2024, when SThree forecast approximately £25 million in pretax profit.

For the first half ended May 31, meanwhile, SThree reported £159.1 million in group net fees, down 14% from £188.7 million the previous year. [It reported all annual growth rates at constant currency.] The London-based company said this reflected continued softness in both Contract and Permanent new business, and was partially offset by strong contract extensions.

Contract net fees decreased 14% on-year to £133.8 million, while Permanent fees declined 13% to £25.2 million, the London-based company stated.

SThree in Germany generated £47.0 million in net fees, down 14% on an annual basis, which ‘primarily reflected levels of demand for Technology skills’.

Netherlands results ‘were affected by reduced demand for Engineering and Technology skills, compared with strong prior-year comparators’ with net fees falling 22% to £28.6 million.

In the UK, net fees dropped 28% to £14.2 million.

SThree will release its results for the half-year ended May 31 on July 29.

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