SThree drops as growth slows in second quarter

SThree, the specialist recruitment firm, has reported slowing growth in profits in its second quarter as the macro environment begins to make placing people in jobs more difficult.

In the six months to May 27th gross profit was £99.9m, up 12% on the prior year but growth slowed noticeably in the second three months of the period, which was only 9% ahead of the previous year.

Permanent placements were 14% up year-on-year, while contract jobs gained 10%, although SThree argues, as the economy worsens, its contracts (temp) business is likely to prove more resilient.

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Average placement fees for the half year grew strongly, despite "continuing weakness" in the banking and finance market. Energy, pharmaceuticals & biotechnology all performed well.

During the half year SThree opened offices in Oslo, San Diego, Rio de Janeiro and Brisbane, taking the total to 64 offices in 18 countries.

The Chief Executive, Russell Clements said while the energy sector remained strong in "overall terms the market is becoming more challenging".

The shares were down 5.5% at 11:24.

BS