LONDON (ShareCast) - (Sharecast News) - SThree posted a slide in fees and earnings on Tuesday and warned of a tough year to come, as it continued to battle a weakened jobs market.

The UK recruiter, which specialises in science, technology, engineering and maths-based roles, said revenues in the year to 30 November had fallen 10% to £1.49bn, or by 8% on a like-for-like basis.

Net fees slid 9% on the same basis, to £369.1m, while pre-tax profits were also down 9%, at £67.6m, largely in line with expectations.

SThree has been hit by challenging economic conditions in its largest markets, the Netherlands, Germany and USA.

Engineering fees were largely stable, down just 1% on a strong prior year. But technology and life sciences fees slumped 10% and 17% respectively.

Contract net fees, meanwhile - which represent around 84% of group net fees - were down 7%, after client extensions only partially offset a slide in new business activity.

Timo Lehne, chief executive, said: "Against a protracted challenging market, which has weighed on new business activity, the group delivered a resilient full-year performance.

"As previously reported, while contract extensions remain robust, the board has taken a prudent view of the 2025 full year, given the weak new business environment, which is expected to persist through the current year."

Shares in SThree plunged in December, after it first warned of a sharp fall in profits in 2025.

On Tuesday it reiterated that guidance, for pre-tax profits of about £25m. Prior to the profits warning, analysts had been expecting 2025 pre-tax profits of around £67m.

As at 0845 GMT, the London-listed stock was trading 5% lower at 272p.

Lehne said: "While we navigate this extended cycle we continue to drive material operational enhancements through the group to position us in line with the structural opportunities arising as a result of clear trends, such as rapid technological change and new ways of working.

"We start the new financial year as a stronger organisation, which, combined with a robust business model and energised team, leaves us well placed as we progress on our vision for future success."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE