SThree cautiously optimistic as cost optimisation programme on track

(Alliance News) - SThree PLC on Tuesday said that it "achieved continuous productivity gains on a per head basis," as it reported lower net fees in the first financial half.

London-based science, technology, engineering and mathematics-focused staffing firm said net fees fell 7% on-year in the six months to May 31, with the rate of decline moderating through the first half, supported by "strong growth" in the US.

The company noted continued growth in the energy segment, up 8% amid "strong" demand in the US. Meanwhile, in the technology segment, net fees were down 14%, as "strong" US and Japan growth only partially offset reduced demand across other key countries.

The company said: "In Germany, performance was primarily attributable to soft demand for technology roles, its largest skill vertical. In the Netherlands, results were largely driven by a soft performance within its two largest skill verticals, technology and engineering, with the rate of decline moderating through the half primarily reflecting easing prior-year comparators."

Overall, contract new business activity was stable on-year, and improved on-quarter, SThree said.

Further, the firm's cost optimisation programme is on track, with savings weighted to the second financial half.

SThree expects to publish results for the financial year ending November 30 to be in line with its previously announced GBP10 million pretax profit guidance, which would be down 61% from GBP25.5 million in financial 2025, which itself had fallen 62% from GBP67.6 million in financial 2024.

Chief Executive Officer Timo Lehne said: "Trading momentum improved through the period despite the broader macroeconomic and geopolitical backdrop. In the half we delivered strong growth in the USA and Japan, and stable contract new business activity. We have achieved continuous productivity gains on a per head basis, which are underpinned by the successful delivery of our Technology Improvement Programme, TIP, last year. Tangible benefits are now increasingly evident across the group, and importantly, TIP enables continuous enhancement and AI innovation at scale and pace."

He added: "As the workforce needs of our clients continue to evolve, they increasingly seek partners capable of managing greater complexity in workforce solutions. This trend favours our differentiated end-to-end proposition and reinforces our role in providing the STEM specialists that industries rely on to design, build and grow. While we remain mindful of the external backdrop, our ability to service these evolving client needs, together with encouraging new placement trends, leaves us well positioned as we look ahead with cautious optimism."

SThree will publish half-year results on July 21.

SThree shares were 0.5% lower at 166.00 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News slot editor

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