SThree reports 'robust' 1H despite macro uncertainty

Hiring specialist SThree reported a "robust" net fee performance for the first half of its financial year, despite what it described as an "uncertain" macroeconomic backdrop.

"We are delighted with the strategic progress we have made, centred on an analytical and fact-based approach of knowing where to play and playing where we can win," the company's boss, Timo Lehne, said.

"Our highly disciplined and targeted investment in talent acquisition within Contract remains a priority for the business."

The company, which was focused on Science, Technology, Engineering and Mathematics roles, reported a 2% year-on-year decline in group net fees for the six months ending on 31 May at constant currencies.

Lehne highlighted the impact from tough comparables and the 3% rise in net fees on an as reported basis, thanks to currency tailwinds.

Contract net fees were ahead by 3% in annual terms, having grown in most regions, and now made up 81% of group net fees.

Sthree's three major markets saw divergences with net fees in the Netherlands growing by 3%, whilst in Germay they fell by 1% and in the US by 11%.

Demand from the various sectors was also quite disparate, as Engineering was ahead by 17% but Life Sciences down by 21%.

Commenting on the outlook, Lehen said: "Our long-term opportunity is unchanged, underpinned by structural megatrends which drive the acute need for scarce STEM talent.

"In the short term we remain responsive to the macro backdrop and how that plays out on the mix of new placements and extensions, while tightly managing costs. Supported by a resilient business model and robust financial position, we remain well positioned to source and place the best STEM talent the world needs and will be in a position of strength once the macro-economic environment eases."