SThree expects FY pre-tax profits to be 'significantly above' market consensus
By Iain Gilbert
Date: Tuesday 26 Oct 2021
(Sharecast News) - Staffing business SThree said on Monday that full-year pre-tax profits were likely to come in "significantly above" market consensus after net fees improved in the three months ended 31 August.
SThree posted a 29% year-on-year increase in group net fees, while contract and permanent net fees were 27% and 36% higher, respectively.
The London-listed firm also highlighted that its contractor order book was up 41% year-on-year, driven by "very strong growth" in its three largest countries, with Germany up 35%, USA up 31% and the Netherlands up 24%.
As a result, SThree now expects that pre-tax profits for the 12 months to 30 November will be "significantly above market consensus, driven primarily by the timing of the planned increase in investment shifting to 2022 and beyond and its strong trading performance.
Chief executive Mark Norman said: "The planned acceleration of investment into our people, talent acquisition, infrastructure and go-to-market proposition to drive long term sustainable growth will gather pace through the remainder of the financial year but the full effect is now likely to be felt in FY22.
"This, together with the strong net fees performance delivered in the quarter, and the impact of a potential return to more normal working and annual leave patterns not having been felt as yet, means that we now anticipate being significantly ahead of consensus profit expectations for the full year, following the upwards revision provided in June 2021."
As of 0905 BST, SThree shares were up 6.19% at 583.0p.
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