LONDON (Alliance News) - SThree PLC Friday said its gross profit, the difference between revenue and the cost of sales, increased by 14% at constant currency in the first half against the same period last year.
At constant currency, gross profit increased to GBP110.5 million in the six months ended May 31, compared with GBP100.9 million in the corresponding period of the prior year.
The specialist staffing business said information and communications technology saw growth of 20% in the six-month period year on year, with life sciences up 21%, together more than offsetting a 3% decline in energy, where conditions have been tough.
"Overall, the group had a pleasing first half, trading in line with our expectations. In particular, we continued to see positive results from our investment in contract and made further progress with our drive to rebuild productivity across permanent and contract," Chief Executive Gary Elden said in a statement.
Contract revenue was up 20% year on year, now accounting for nearly two-thirds of gross profit.
Elden said the US is one of the most exciting markets for SThree.
"Once again, the Americas business reported a strong performance, growing 34% year on year driven by expansion of the ICT, Life Sciences and Banking & Finance sectors, in part offset by the weak Energy market," the CEO said.
Elden thinks the trading environment "remains positive" in the majority of its territories.
"While the outlook for Energy remains challenging and foreign exchange continues to be a headwind, the Group's strong performance overall demonstrates the inherent benefits of our well-diversified portfolio. The expanded Contract book and improving Permanent performance give us a strong base from which to grow in the seasonally more significant second half of the year," the CEO said.
SThree said it will provide its full interim results on July 13.
SThree shares were up 1.4%% at 381.69 pence on Friday morning, after having initially fallen to 368.00p.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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