SThree sees half-year revenues fall, leaves guidance unchanged
By Abigail Townsend
Date: Tuesday 23 Jul 2024
(Sharecast News) - Specialist recruiter SThree left its full-year guidance unchanged on Tuesday, despite posting a slide in interim revenues.
The FTSE 250 firm, a specialist in science, technology, engineering and maths roles, said revenues in the six months to 31 May fell 7% to £763.4m, or by 5% on a like-for-like basis.
Net fees slid 10%, to £188.7m, or by 7% like-for-like.
Strong demand in the energy sector meant engineering fees were ahead 8%. However, that was offset by a 9% decline in technology - SThree's largest sector - and a 16% slump in life sciences, which the firm said had been driven by global sector trends.
Operating profits eased 1% at £37.7m. Pre-tax profits rose 1% to £39m, due a lower headcount, higher interest income and tight cost control.
Looking ahead, however, SThree left its full-year guidance unchanged, despite acknowledging that new business activity continued to be subdued and market conditions challenging.
Analysts currently expect annual pre-tax profits to come in around £69.2m.
Timo Lehne, chief executive, said: "Given the challenges faced across the sector, our resilient performance has been pleasing.
"Strong contract extensions have continued to underpin performance, despite subdued new business activity.
"As we enter the second half, market sentiment remains largely unchanged. Contract extensions continue to be robust, as clients seek much needed STEM expertise, and we are well covered in our focused skills specialism and markets for when macroeconomic conditions ease."
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