SThree Share News (STEM)

(Alliance News) - SThree PLC on Monday posted a fall in earnings for the first half of financial 2020 as it said it will withhold the payment of a dividend due to uncertainty.

Shares in the recruiter were trading 3.1% lower at 263.00 pence each on Monday afternoon in London.

For the six months ended May 31, SThree posted revenue of GBP602.6 million, down 7.8% from GBP653.3 million reported for the comparative period a year prior. Pretax profit was GBP13 million, narrowed from GBP22.7 million.

The London-based company said the deterioration in profit was partly due to the Covid-19 pandemic and partly due to the cost of new investments. While the company recorded net fees of GBP75.3 million in line with expectations in the first quarter, in the second quarter the Covid-19 pandemic hurt demand for staff, resulting in net fees declining 12% year-on-year to GBP75.9 million.

No interim dividend was declared, compared to 5.1p the year prior.

Looking ahead, Chief Executive Mark Dorman said: "Whilst times ahead remain uncertain, we have a strong financial position, a great opportunity, and we are united behind our strategy which will guide us through the second half and beyond."

STHree said that as at the end of May, it had net cash of GBP31.0 million, adding that it had immediately accessible liquidity of GBP136 million and access to a revolving credit facility and Covid Corporate Financing Facility if needed.

By Ife Taiwo; ifetaiwo@alliancenews.com

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