SThree sees improving placement trends, reiterates guidance

(Sharecast News) - STEM-focused recruitment company SThree said it finished its financial year ended 30 November positively, with improving trends in new placements, as it reiterated its earnings forecast. The company still expects pre-tax profit to be in line with guidance at £25m, representing a 63% decline from the year before.

Full-year net fees were down 12%, in line with the 12% drop reported for the first three quarters combined, with contract fees down 12% and permanent fees down 9%.

However, the company said it saw a sequential quarter-on-quarter improvement in the rate of decline throughout the year, with contract performance in the US returning to growth, helping to partially mitigate weaker performances in Germany and the Netherlands.

"As anticipated, we have not yet seen a widespread market recovery, however we have exited the year with a period of improving new placement activity, complemented by continued resilient extensions," said chief executive Timo Lehne.

"Whilst navigating a challenging macroeconomic backdrop, we have focused this year on what is within our control: positioning the business to capture emerging pockets of growth - achieving growth in two of our top five countries - sharpening our proposition, and maintaining a disciplined focus on operational efficiency."

SThree shares were up 2.7% at 176.6p in early deals on Tuesday.