SThree delivers 'excellent' H1 performance, revenue and profits up double digits

Staffing business SThree said on Monday that it had delivered an "excellent performance" in the six months ended 31 May, with both revenue and profits up double digits year-on-year.

SThree said like-for-like revenues were up 27% at £772.2m on a reported and adjusted basis, while net fees had risen 25% to £203.1m.

Contract and permanent net fees were up 30% and 11% year-on-year, respectively, with contract revenues growing to represent 77% of total group net fees.

As a result, operating profits rose 62% to £44.6m, pre-tax profits increased 64% to £44.3m and basic earnings per share jumped 71% to 24.1p. The group also declared an interim dividend per share of 5.0p.

SThree also highlighted that it had a "robust balance sheet", with net cash of £48.4m as of 31 May, up from £47.5m at the same time a year earlier.

Chief executive Timo Lehne said: "Our Group has generated another excellent period of growth, surpassing the milestone of £200.0m of net fees in a half year, driven by a strong performance across all our regions and STEM disciplines.

"Whilst we are mindful of the wider macro-economic uncertainties, the demand for STEM talent, and flexible STEM talent in particular, is structural. Our position as the number one destination for talent in the best STEM markets and our strong contractor order book underpins our continued confidence.”

As of 0855 BST, SThree shares were up 2.22% at 396.62p.

Reporting by Iain Gilbert at Sharecast.com