Advertisement

SThree expects in line profits despite increasingly difficult backdrop

International specialist staffing business SThree on Wednesday morning emphasised the company's growing geographical diversification and that its succession plan for top management is running ahead of schedule.

International specialist staffing business SThree on Wednesday morning emphasised the company's growing geographical diversification and that its succession plan for top management is running ahead of schedule.

However, the group's Chief Executive, Russell Clements, commented: "The Group has traded satisfactorily during the year, against a macro economic backdrop that became increasingly difficult across the period (...)."

Advertisement - Article continues below

Even so, full year profit before tax is expected to be £25m, in line with market consensus, according to the the firm.

The Group's gross profit was up 8% year-on-year with contract gross profit up 11% and permanent gross profit up by another 6%.

Rusell added that its Energy & Engineering and Pharmaceuticals & Biotechnology segments, which between them make up about one third of gross profits, continued to experience strong demand.

These businesses are making an increasingly significant contribution both to Group performance and to our ongoing geographic diversification. Nearly two thirds of fee income now being generated outside the UK&Ireland, the company explained.

Group sales headcount on November 25th was down 6% year-on-year. UK sales headcount was down 18%, while in Continental Europe headcount was down 5%, but in Rest of World headcount was up 18%. Average sales headcount for the year was up 10% year-on-year, but down 7% for the fourth quarter when compared to last year.

Similarly, the permanent deal pipeline at the period end was 4% down year on year, with weakness in UK&Ireland, France and Benelux offsetting strong performance in Rest of World and Germany.

During the most recent period the Group opened new offices in Oslo, San Diego, Rio de Janeiro and Brisbane during the year.

Lastly, SThree indicated that a number of key tasks related to the succession of its Chief Executive were completed ahead of schedule. In light of this excellent progress, Gary Elden will succeed Russell as CEO with effect from the next January 1sT 2013, at which point Russell will retire from the Board.

AB

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/commodities/industrial-metals/601401/money-printing-infrastructure-base-metals-copper
Industrial metals

Governments’ money-printing mania bodes well for base metals

Money is being printed like there is no tomorrow. Much of it will be used to pay for infrastructure projects – and that will be good for metals, says …
27 May 2020
Visit/investments/investment-strategy/601389/are-you-a-permabear-three-red-flags-to-watch-out-for
Investment strategy

Are you a permabear? Three red flags to watch out for

Contrarian investors are often seen as bearish because the market tends to go up over time. But if that bearishness goes too deep, you risk seriously …
26 May 2020
Visit/economy/eu-economy/601422/heres-why-investors-should-care-about-the-eus-plan-to-tackle-covid-19
EU Economy

Here’s why investors should care about the EU’s plan to tackle Covid-19

The EU's €750bn rescue package makes a break-up of the eurozone much less likely. John Stepek explains why the scheme is such a big deal, and what it …
28 May 2020