SThree sees 7% decline in first-half net fees

STEM-specialist recruitment firm SThree said it expects to hit market forecasts this year despite a drop in net fees in the first half.

Net fees were 7% lower year-on-year in the six months to 31 May which the company blamed on an "ongoing challenging backdrop" as well as a strong performance the previous year.

SThree reports continued softness in new business across Contract and Permanent, partially offset by strong Contract extensions.

The company said that demand remains strong for engineering roles, driven by the renewable energy sector, but life sciences and tech continue to struggle.

Across its top five countries, SThree saw fees decline in Germany (-12%), the UK (-9%) and the US (-13%), but rise in the Netherlands (+3%) and Japan (+27%).

"Against the challenges experienced by the sector, we are pleased with our trading performance over the past six months," said chief executive Timo Lehne.

"We are excited about the significant enhancements this will bring across our Group over the mid-to-long term, positioning us at the forefront of our industry."

Shares were down around 1% at 418p by 0902 BST.