SThree dodges UK softening with strong growth in Europe
The recruitment agency focuses on science and technology professionals.
Recruitment business SThree, which specialises in science and technology staffing, has delivered double-digit profit growth despite a softening in its UK business.
The group’s gross profit for the half-year ended May 31 was up 11% from £134.4 million to £148.4 million.
Profit growth at the group, which generates 82% of its business abroad, accelerated in the second quarter, up 13%, as compared to 8% in the first quarter of the year.
SThree operates from 43 offices in 16 different markets, and 37 of its offices are outside the UK.
We are continuing to invest in headcount in our high-performing teams, consistent with our vision to be the number one STEM talent provider in the best STEM markets Gary Elden, SThree chief executive
Profits in the company’s UK business fell 2% over the half-year, down from £27.1 million to £26.5 million. In Europe, profits surged 18% from £69.1 million to £83.9 million.
Gary Elden, SThree’s chief executive, said: “We are pleased to have delivered an encouraging first-half performance, with our continental Europe and USA businesses, in particular, showing strong growth through the second quarter.
“Our contract business continues to grow robustly across all sectors, with continental Europe and the USA both delivering double-digit growth in gross profit.”
Profit from SThree’s contract business was up 14%, while profit from permanent jobs rose 4%.
Mr Elden said SThree was aiming to be the top provider of jobs in the science, technology, engineering, and mathematics (STEM) disciplines.
“We are continuing to invest in headcount in our high-performing teams, consistent with our vision to be the number one STEM talent provider in the best STEM markets,” he said.
Following the announcement, SThree’s shares climbed 2.42% to 338p.