LONDON (Alliance News) - Staffing company Sthree PLC on Friday said it is set to deliver full-year results in line with market expectations, with group gross profit rising, despite a drag from its energy practice.
The recruiter said its group gross profit for the year to the end of November was up 11% year-on-year and would have increased 17% without the drag from its energy unit, which has been hit by the downturn in spending by the oil and gas industry on projects and work programmes amid the low oil price environment.
Group gross profit for its energy division fell 19% in the year and dropped 37% in the fourth quarter as the market continued to weaken. ICT and life sciences practices both performed well, while Sthree said it saw a continued improvement in its Americas business.
Sthree said its contract gross profit rose 17%, while its permanent business rose 3.0%, with both also effected by its energy arm.
Still, the group remains on track to deliver against market expectations for its pretax profit, before exceptional items, to hit GBP36.9 million to GBP38.4 million.
"Looking ahead to 2016, while the trading environment remains broadly positive in the majority of our territories, we note that global macro-economic uncertainties have increased somewhat during the fourth quarter, with increasing risks to global growth. We also expect challenging energy market conditions and FX headwinds to persist," said Chief Executive Gary Elden.
Shares in Sthree were down 5.6% to 310.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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