SThree confirms a resilient performance in Q3 FY23, trading in line with market expectations for the full year

The Group continued its resilient performance in the quarter with net fees down 7% year on year (YoY), in line with FY23 Q2, against a strong comparative period from the prior year. On a like-for-like basis, excluding restructured businesses, net fees were down 5% YoY, a sequential improvement on the 6% YoY decline in Q2, demonstrating the value of our focused and disciplined market investment approach.

A strategic focus on Contract continues across the Group, with net fees improving to flat YoY. Contract now represents 84% of net fees. SThree’s Permanent business was down 31% reflecting global market conditions and the strategic transition from Permanent to Contract in several markets, with average Permanent headcount for the quarter down 21% YoY.

In our largest three markets, which collectively represent 73% of net fees, the Netherlands grew 5%, while Germany was down 6% and USA was down 19%.

From a skills perspective, Engineering grew by 20%, while Technology was down 6% and Life Sciences was down 24%. Our contractor order book remained flat YoY, reflecting sequentially improved new placement activity and continued robust extensions performance.

SThree maintains a strong balance sheet with net cash of £83 million at 31 August 2023.
Our Technology Improvement Programme remains on track and on budget, with first city, Houston, now live, and a sequenced rollout scheduled across the Group progressing in line with stated plans.

Timo Lehne, Chief Executive Officer, commented:

“We continue to deliver a resilient performance, underpinned by the Group’s strategic focus on Contract. While the wider environment remains unclear, we are encouraged by our improving new placement performance and strong Contract extensions, which shows a sustained demand for critical STEM skills.

Our Technology Improvement Programme, key to driving both scale and higher margins over the mid-to-long term, and to delivering a higher value proposition within the market, is progressing both on time and on budget. I am delighted that the first phase of the rollout in Houston is now complete, which is a significant milestone for the Group.

Our long-term opportunity is clear, underpinned by structural megatrends driving the acute need for scarce STEM talent. We are mindful of the macro-economic uncertainty across global markets, which we continue to monitor closely. We look ahead to the opportunities facing us with optimism. We are trading in line with market expectations for the full year and remain well positioned to source and place the best STEM talent the world needs.”

Notes to editors

SThree plc brings skilled people together to build the future. We are the only global STEM specialist talent partner focused on roles in Science, Technology, Engineering, and Mathematics (‘STEM’), providing permanent and flexible contract talent to a diverse base of over 8,200 clients across 12 countries.
Our Group’s c.2,700 staff cover the Technology, Life Sciences, and Engineering sectors. SThree is part of the Industrial Services sector. We are listed on the Premium Segment of the London Stock Exchange’s Main Market, trading with ticker code STEM.