We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Interim Management Statement SThree plc ("SThree" or the "Group"), the international specialist staffing business, is today issuing an Interim Management Statement for the period from 27 May 2012 to date. The financial data relates to the three month period ending 26 August 2012, being the third quarter of the financial year ending 25 November 2012. Highlights: · Group gross profit up 6%* year on year · Contract gross profit up 10%* year on year · Permanent gross profit up 2%* year on year · Permanent deal pipeline volume level year on year · Growth rate in contract runners ahead of same period in 2011 · Continued strong financial position with net cash of circa £17m at period end, after payment of the final dividend of 9.3p per share (circa £11m) on 6 June 2012
http://www.investegate.co.uk/Article.aspx?id=201209070700077144L
Shore Capital maintained its "buy" rating for SThree (STHR) ahead of the recruitment agency's third quarter update on 7th September. The broker expects to hear positive news from the oil & gas and pharmaceutical sectors, particularly in Germany, offsetting weaker performances from UK banking. Shore also believes that the firm will have performed well outside of Europe. The broker noted a strong balance sheet and believes that the shares should be supported by a good dividend yield. The shares slipped by 2p to 264.25p.
Panmure Gordon reiterated its "sell" recommendation for SThree (STHR) with a 212p target price. The broker significantly reduced its full year pre-tax profit forecast for the recruitment agency, from 30.3 million pounds in the year ending November 2013 to 24.9 million pounds, in light of continued deterioration in trading conditions during the second quarter. Additionally, Panmure believes the firm may choose to maintain its dividend for both 2012 and 2013, instead of the previously expected 5.1% increase. The broker also noted that the shares trade on a prospective earnings multiple of over 20 times for 2012. Shares in SThree inched down by 1.5p to 272.25p.
SThree Sell 06-Aug-12 £419,176.54 Gary Elden 157,343 @ 266.41p
Panmure Gordon kept its "sell" stance for SThree (STHR) with a target price of 158p. The recruitment agency reported adjusted first half pre-tax profits of 9.3 million pounds, falling short of the broker's forecast of 10.2 million pounds. Panmure noted that the firm's performance is usually weighted towards the second half and raised concerns over a weakening of the macro environment leading to reduced placements and fees
Tempus in The Times is cautious about tech recruitment specialist SThree. It is doing better than its peers, Michael Page and Hays, but the banking sector is very weak, falling to just 5% as a proportion of income, compared to 13% in the prior year. There’s no doubt SThree has some things to recommend it, not least an impressive history of paying decent dividends but it currently trades at 22 times earnings, Tempus doesn’t think there’s much further the stock can go. Leave.
The firm, which opened new offices in Oslo, San Diego, Rio de Janeiro and Brisbane, added: "Against a background of continuing solid demand, both Engineering & Energy and Pharmaceuticals & Biotechnology are making an increasingly significant contribution to group performance, and this trend is mirrored in our more recent international office openings." SThree said permanent versus contract mix of gross profit is now 51:49 in favour of permanent compared to 52:48 in 2011. Non-UK&I GP for the period represented 66% of the group total, up from 63% the year before. Rest of World, excluding UK and Europe, GP grew to 16% of mix compared to 13% in 2011.
Recruitment firm SThree posted a 16.9 per cent drop in half year pre-tax profit as it expanded its international network but maintained its dividend payment. The group, which warned of a global hiring slowdown at the start of the year, said pre-tax profit fell to £9.3m for the half year ended 27 May 2012 from £11.2m previously. "The decline in profit reflected costs of expanding the international network and relative immaturity of newer international teams which are yet to achieve full productivity", SThree explained. Revenue for the period rose to £278.4m from £254.9m while gross profit climbed 11% year on year. Like-for-like sales gained 12.2%. Permanent placements rose 3.5% to 3,572 and the average permanent placement fee gained 8.2% LFL to a record £13,712. The number of active contractors rose 8.6% year on year to 4,757 and average GP per day rates increased by 2.2% like for like to £87.88. Chief executive officer Russell Clements said: "The group traded satisfactorily and in line with management's expectations in the first half, particularly given the deterioration in the macro-economic situation seen during the second quarter."
With Russell Clements and Sunil Wickemaratne's departure will the fire go out of the belly of Sthree? Always performed well - good culture, strong work ethic. How much down to the early joiners
The Chief Executive, Russell Clements said while the energy sector remained strong in "overall terms the market is becoming more challenging".
During the half year SThree opened offices in Oslo, San Diego, Rio de Janeiro and Brisbane, taking the total to 64 offices in 18 countries.
Permanent placements were 14% up year-on-year, while contract jobs gained 10%, although SThree argues, as the economy worsens, its contracts (temp) business is likely to prove more resilient. Average placement fees for the half year grew strongly, despite "continuing weakness" in the banking and finance market. Energy, pharmaceuticals & biotechnology all performed well.
SThree, the specialist recruitment firm, has reported slowing growth in profits in its second quarter as the macro environment begins to make placing people in jobs more difficult. In the six months to May 27th gross profit was £99.9m, up 12% on the prior year but growth slowed noticeably in the second three months of the period, which was only 9% ahead of the previous year.
On the face of it the current environment could be classed as the best and the worst of times for recruitment agencies like SThree (STHR). Bulls will be hoping for more of the kind of cautious optimism delivered in the March update with gross group profits up 15% year-on-year and average placement fees for the quarter up strongly. With the current permanent deal pipeline showing an increase of 11% year on year, and £30m in cash, SThree appears to be a company with solid fundamentals.
Russell Clements, Chief Executive, commented: "For seasonal reasons, the first quarter is the Group's least significant in terms of the year as a whole. Nonetheless, it is pleasing to note that our gross profit growth year on year has improved in Q1 2012 compared to Q4 2011. We are also reassured by our permanent deal pipeline, with deals agreed but yet to start up by 11% year on year. In addition, the normal seasonal recovery in contract runners is following a similar shape to 2011. "There remain significant differences within both geographies and sectors in the demand for the Group's services but, overall, market conditions remain in far better shape than we saw in the aftermath of the global financial crisis. We are a cash rich and agile business, with a twenty five year track record of profitability and a seasoned management team. As such, we are well placed to maximise the potential of whatever market conditions prevail in 2012." SThree is hosting an analyst conference call today at 0830 GMT. The details are as follows:
Highlights: · Group gross profit up 15%* year on year (up 12%* in Q4 2011) · Permanent gross profit up 16%* year on year (up 14%* in Q4 2011) · Contract gross profit up 13%* year on year (up 9%* in Q4 2011) · Permanent deal pipeline volume up 11% year on year (up 1% at year end 2011) · Seasonal recovery in contract runners tracking broadly in line with 2011 · Strong financial position with net cash of circa £30m at period end after payment of interim and special dividend of c£20m in early December 2011
http://www.investegate.co.uk/Article.aspx?id=201203090700119967Y
UBS hikes target from 265p to 350p, buy rating kept.
The Times’s Tempus column weighs up recruitment firm SThree, which has had a pretty rough time as of late, falling 35% in the last 12 months. The case for a buy is based on geographic spread, with nearly 80% of profits generated outside of the traditional British IT market. The Middle East, India and Brazil are much happier hunting grounds now. While banking is obviously not going well, oil and gas is booming and SThree often returns cash to shareholders with a special dividend of 11p per share announced in December. But at 17 times earnings, Tempus thinks now is not the time to wade into the stock. Hold.
Russell Clements, CEO, commented: "We start 2012 against a backdrop of increased economic uncertainty. Whiledemand is lower than in the prior year, it is also undoubtedly the case that overall, market conditions remain in far better shape than those we saw in the aftermath of the global financial crisis. It is also true that just as sentiment can deteriorate very quickly, it can also move in a positive direction equally rapidly. "Whatever 2012 has in store for us, we remain confident that we will make the best of it. Our seasoned management team has seen all market scenarios and has become increasingly adept in recent years at driving the best available result in uncertain circumstances. We will manage the business prudently but we will not lose sight of the great medium term prospects for our business and where appropriate we will invest to ensure that the Group's future lives up to its potential."
Operational Highlights · A strong performance given the changing market sentiment during the year; · Non-UK&I share of gross profit increased significantly to 63% (2010: 59%), with the trend expected to continue as the Group becomes ever more international; · New offices opened in Doha, Antwerp, Sao Paulo, Zurich, Luxembourg, Mumbai, Chicago, Boston and Moscow, bringing the Group total to sixty offices in seventeen countries; · Permanent placements increased by 13.5% to 7,434 (2010: 6,551), with average fees growing strongly; · Number of active contractors at year end increased by 7.6% to 4,692 (2010: 4,359), with average gross profit per day rates remaining strong; · Contract versus Permanent mix of gross profit 48%:52% in favour of Contract (2010: 51%:49%); · Continued sector diversification, with non-ICT(1) disciplines now representing 40% of total gross profit (2010: 38%); · 78% of gross profit now derived from outside of the UK ICT market (2010: 76%); · Total Group headcount at year end increased by 22.0% to 2,272 (2010: 1,863); · Year end net cash and term investments of £55.6m (2010: £55.2m) reflecting continued strong cash generation;
http://www.investegate.co.uk/Article.aspx?id=201201300700113414W
2012 Announcement Timetable SThree, the international, multi-sector, specialist staffing business, confirms the following forthcoming dates in the Group's financial calendar: 30 January 2012 Annual results for the year ended 27 November 2011 9 March 2012 Q1 Interim Management Statement 19 April 2012 Annual General Meeting* 8 June 2012 Trading update for the six months ended 27 May 2012 16 July 2012 Interim results for the six months ended 27 May 2012 7 September 2012 Q3 Interim Management Statement 30 November 2012 Trading update for the year ended 25 November 2012 30 January 2013 Annual results for the year ended 25 November 2012
Credit Suisse downgrades from outperform to neutral, target cut from 280p to 250p.