SThree sees full-year profit slightly ahead of market views

Recruiter SThree hailed a strong finish to the year on Friday as it said adjusted pre-tax profit is expected to be slightly ahead of current market consensus.

Market expectations are for adjusted profit before tax of between £42m and £45.6m, with a consensus of £43.8m.

In the year to 30 November, gross profit was up 4% at constant currency to £287.6m, with profit in Continental Europe and the US up 9% and 18%, respectively. This helped to offset a 14% drop in the UK and Ireland.

Gross profit in the contract business was up 10% to £203.4m, while profit in the permanent business was 8% lower at £84.2m.

Chief executive Gary Elden said: "We have delivered an encouraging overall result for the year, and now expect full year profit to be slightly ahead of consensus. Strong performances in the USA and Continental Europe, particularly from our market-leading business in the Netherlands and our business in Germany, were key to the delivery of this result. Our contract business continued to perform robustly, with GP increasing by 10% year on year and with contract runners at the period end reaching in excess of ten thousand, a milestone for the group.

"Looking ahead to 2018, the momentum of our contract business and the strength of our performance in the USA and Continental Europe leave us well-positioned for growth.”

At 1320 GMT, the shares were flat at 356p.