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

Q1 trading update sees contract net fees rise by 8% year-on-year, now representing 81% of Group fees, in line with company strategy

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.”

View our financial results

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.

Contact us

SThree Logo STEM Recruitment

Press enquiries

Contact our press team today

Registered address:
75 King William Street,
London, UK

Latest news

12 April 2023

SThree announces SBTi-verified net-zero target and publishes 2022 Impact Report

The Group announces its ambitious SBTi1-verified net-zero target and transition plan, alongside it's annual review of it's ESG strategy.

30 January 2023

SThree reports record net fee and profit performance

Like-for-like net fees up 19% with profits up 24% driven by successful execution of our well-established strategy

14 December 2022

SThree reports record performance for the year with double-digit growth across all regions

The Group’s net fees for the financial year ended 30 November 2022 are up 19% YoY, driven by the execution of our strategy.

18 November 2022

SThree wins silver at the Learning Technology Awards

SThree’s L&D team have won silver at the 2022 Learning Technologies Awards. The awards recognize the achievements within the learning tec...

15 November 2022

SThree leaders named on SIA’s Staffing Europe 100 and Global Power 150 List

Timo Lehne, Sunnny Ackerman and Karima Green have been recognised on SIA staffing lists

07 October 2022

SThree’s ‘STEM Equity Coalition’ wins American Staffing Association Elevate award

SThree’s ESG team have won the American Staffing Association (ASA) Elevate award for their 'STEM Equity Coalition' programme. Learn more

20 September 2022

SThree’s strong Q3 growth driven by successes across key regions and STEM disciplines

The Group has seen continued YoY growth in our three largest countries with Germany up 13%, USA up 9% and the Netherlands up 36%.

22 August 2022

SThree appoints new Non-Executive Director

Elaine O’Donnell has been appointed Non-Executive Director of SThree plc.

25 July 2022

SThree reports very strong profit growth with record H1 net fees

SThree, the global STEM-specialist talent partner, reports very strong growth in profit before tax in the first half of our financial year.