(Adds CEO comments, peer performance, share movement)
By Esha Vaish
Dec 9 (Reuters) - Recruiter SThree said annualprofit would exceed market expectations as strong growth in theUnited States and Europe more than made up for a slowdown inhiring in its domestic business following Britain's vote toleave the European Union.
SThree, which makes three quarters of its gross profit fromoutside Britain and Ireland, said it expected pretax profit forthe year to the end of November to be slightly above the top endof market guidance of 37.3 million to 39 million pounds.
Strong demand for temporary workers in continental Europeand an improvement in U.S. conditions meant the staffing companygenerated a 2 percent rise in gross profit for the year, it saidin a trading statement, sending its shares up 3.6 percent to 285pence by 1110 GMT.
Staffing firms such as SThree, PageGroup, Hays and Robert Walters are seen as gauges of widereconomic health because people tend to switch jobs more oftenwhen confidence rises. SThree is the first of the UK recruitersto report results spanning October and November.
Although most British staffing companies have been hit byuncertainty following the surprise Brexit vote in June, theirinternational businesses have continued to offer protection.
SThree, which places staff with financial, energy, bankingand pharmaceutical firms, said it would focus on hiring peoplefor temporary jobs in Britain and Ireland.
The company was seeing fewer British jobs coming on to themarket and companies hiring temporary staff for slightly shorterdurations, depressing profitability for Britain and Ireland.
It noted a slowdown in finance and the public sector hiringafter the Brexit vote and public sector reforms.
"Our effort and focus is on our contract business, which isgenerally more resilient in a downturn, but just as profitablein a good market," Chief Executive Gary Elden told Reuters.
"People are still not making decisions and until the issuearound the Brexit is resolved, I think we're not going to have aclear sight of where the market is going," he said.
Gross profit in constant currency for the UK and Irelandfell 12 percent in the fourth quarter ended Nov. 30, marking thebiggest quarterly drop for the year.
Larger rival Hays has said companies are still cautiousabout adding to staff levels because of uncertainty over Brexit,while PageGroup has said confidence among employers was"fragile" following the vote, with finance firms particularlyholding off from hiring. (Reporting by Esha Vaish in Bengaluru; Editing by Keith Weir)