SThree, a London-listed recruitment company, has announced that its fiscal 2023 performance is in line with market expectations. Despite a decline in its top three countries, SThree was able to achieve this due to a reduction in the average headcount at its permanent business.
For the year ended November 30, group net fees fell by 4% to £418.8 million ($528.5 million) compared to £430.6 million in the previous year. This decline can be attributed to the challenging business environment.
SThree provided a pretax profit consensus of £71.3 million for fiscal 2023.
While contract business fees saw an increase of 1%, permanent fees experienced a significant drop of 22%. The Netherlands showed growth of 3%, while Germany and the U.S. declined by 4% and 14% respectively. These three countries account for 73% of SThree’s group net fees.
The contractor order book decreased by 3% to £184.0 million year on year.
“With the start of the new financial year, we are yet to see an improvement in the macro-economic environment, resulting in challenging trading conditions. However, our strategic focus, exposure to long-term megatrends, and progress in operational enhancements provide a solid foundation for sustained growth,” stated Chief Executive Timo Lehne.
At 0826 GMT, shares were up by 5.0 pence or 1.2%, trading at 422.0 pence.