SThree PLC - London-based recruitment firm - Reports growth in net fees above pre-virus levels as demand for staff continues to rise. Second quarter net fees rise 22% year-on-year, driven by "sustained improvements in new deal activity and contractor retention rates". Half-year net fees up 10% to GBP164.3 million compared to a year prior, in part driven by strong growth in the US.
SThree earlier in June upgraded its profit expectations for the current financial year 2021. SThree posted pretax profit of GBP30.1 million for financial year 2020.
"We are delighted to announce that our teams have delivered a very strong performance in the second quarter, driving significant growth across the group on first half 2020," says Chief Executive Mark Dorman. "Very encouragingly, given the Covid-19 impact in the second quarter last year, net fees in second quarter 2021 were 8% ahead of the equivalent period in 2019."
He says this is "considerable achievement" given volatility, and notes "continued strength of demand" for the "exceptional" candidates firm works with.
"Although the trading background remains uncertain our continued focus is on execution, whatever the external circumstances, as we continue to provide the critical services which our clients have come to expect."
SThree plans to pay an interim dividend in the current financial year.
In a separate announcement, SThree announces the hiring of Andrew Beach as chief financial officer. Beach will join the group on July 5. He was previously chief financial officer of Hyve Group PLC and prior to that held a number of roles at Ebiquity PLC including financial controller, chief financial officer and chief financial & operating officer.
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By Will Paige; willpaige@alliancenews.com
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