SThree H1 profit, revenue rise as international diversification bears fruit

Recruitment firm SThree reported a rise in profit and revenue for the first half on Monday as its international diversification bore fruit.

For the half year ended 31 May, pre-tax profit rose 5% to £19.2m on revenue of £521m, up 7% on the same period a year ago.

The company said it saw a strong performance in the US, with gross profit up 16% year-on-year and now representing 22% of group gross profit versus 19% last year. In Continental Europe, profit was up 7% on the year.

It was a less cheery picture in the UK and Ireland, however, where profit fell 16% year-on-year, hit by the EU referendum, the general election and public sector reforms.

Chief executive officer Gary Elden said: "We are encouraged by our first half performance, with a step up in growth achieved in Q2 against a background of mixed trading conditions. The growing breadth and scale of our international operations, which now account for four fifths of gross profit, underline how far the group has grown from its UK roots, with particularly strong performances in Continental Europe and the USA, which is now our second largest region.

"Our strategic focus on contract business continues to deliver good growth across almost all regions, as well as a greater resilience in more uncertain economic conditions. Our permanent business made good progress in increasing productivity and remains focused on achieving further gains in the balance of the year."

At 1245 BST, the shares were up 2.6% to 292.50p.