Recruiter performed well in ICT and Engineering, but struggled in Energy and Banking
Companies: SThree plc
International recruitment firm SThree has said that it expects full-year results to be slightly above current market expectations after robust performance in ICT and Engineering and American and German markets spearheaded growth.
Pre-tax profit for the year is now expected to be slightly above the top end of market consensus, with Group gross profit up 2% Yoy.
Private investors will welcome the inclusion of the range of market expectations, which is often overlooked by companies in the release of trading updates:
"...for adjusted pre-tax profit for the year is £37.3m to £39.0m, with a current consensus of £38.3m. Adjustments relate to restructuring items of circa £3.5m in certain sales businesses and central support functions."
SThree had a mixed year with robust growth in ICT and Engineering (+12% and +9% respectively) and strong performance in the USA and Germany, but it faced challenging conditions in Banking & Finance and Energy due to reforms and the EU referendum result.
75% of the Group's gross profit was generated outside of the UK, up from 70% in 2015.
CEO Gary Elden said that despite facing mixed trading conditions, the results were solid.
"Continental Europe once again grew strongly, underpinned by a very pleasing performance in DACH, where GP was ahead by 17%* year on year...
He was cautious about 2017, saying uncertainties have increased across many of the firm's key regions:
Looking ahead to 2017, global political and macroeconomic uncertainties have increased across a number of our key regions. We are managing the business prudently in the light of these market conditions, and continue to invest in our highest performing teams. The momentum of our Contract business, the strength of our performance in Continental Europe and the benefit of restructuring measures taken earlier in the year, leave us well-positioned for the future."
SThree's share price rose c2% in early trading on Friday.
