SThree sees 'significant' uplift in fourth quarter

SThree said group fees would be 8% lower in 2020 but that business had shown a "significant" improvement in the fourth quarter of the year.

The recruiter for science and technology industries said the annual fee figure showed it recovering from the effects of Covid-19 after fees dropped 14% in the third quarter.

Net fees fell 7% in the fourth quarter with positive performances in the US, up 11% and Germany, down 3%, the company said in a trading statement. The update followed SThree's announcement in November that annual profit would beat expectations.

Mark Dorman, chief executive, said: "FY2020 has been far from what was expected when we entered the year. However, guided by our purpose and our strategy, we have responded thoughtfully and executed well. I am proud to be reporting today on a resilient performance."

SThree's US business was boosted by strong demand at its life sciences division where net fees rose 16% in 2020. US technology fees rose 9% fuelled by demand in mobile applications and software development. Asia Pacific fees dropped 26% reflecting "the more transactional nature" of SThree's business in Japan.

The company said it continued to recognise the importance of dividends to shareholders and was keeping future dividends under active review. SThree shares rose 1.5% to 297.5p at 12:23 GMT.