SThree reports 4% net fee increase driven by contract growth across all regions

SThree plc, the global STEM-specialist talent partner, announced its trading update for the first quarter ending 28 February 2023, with group net fees up 4% year-on-year (YoY). This steady growth is in line with expectations and is set against a very strong comparative period in FY22.

Across Q1 the Group saw Contract net fees increase by 8% YoY with growth in all regions, while the contractor order book is up 5% YoY. Contract now represents 81% of Group net fees Permanent net fees are down 12% YoY, reflecting global market conditions together with the strategic transition from Permanent to Contract in several markets.

In the largest three markets, which represent 73% of total Group trading, net fees were up in Germany (7%) and the Netherlands (4%), while USA was down (6%).

Skills growth was noted in Technology (8%) and Engineering (19%), while Life Sciences was down (15%).

The Group’s balance sheet is robust with £64 million net cash as at 28 February 2023, compared with £41 million as at 28 February 2022.

Timo Lehne, Chief Executive Officer, said:

“The Group has delivered a robust net fee performance in the first quarter of FY23 with fees up 4% YoY, in line with expectations, and supported by the strength of our well-established strategy, focused on STEM and flexible talent. The macro-economic environment remains uncertain, and we continue to see varied effects across our markets impacting new placements, offset by strong Contract extensions. Our Contractor Order Book underpins our near-term visibility and continues to be a source of strength for the business, with Contract now representing 81% of Group net fees.

“We have continued to make progress against our clear strategy which is centred on an analytical and fact-based approach of knowing where to play and playing where we can win. Our targeted investment in talent and digital infrastructure is progressing as planned, positioning the Group to scale with sustainable margins, in line with our 2024 ambitions.

“Our long-term opportunity is unchanged, underpinned by structural megatrends which drive the acute need for scarce STEM talent. We are closely monitoring lead indicators across our markets as we navigate challenging macro conditions. Supported by a resilient business model and robust financial position, we 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 14 countries. Our Group’s c.3,100 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.