The Q4 trading update had already flagged a better than expected net fee and profitability performance and these results have put more meat on the bone. Beyond the resilience SThree has shown in what has been an extraordinary year; the key questions looking forward are going to revolve around the maintenance / acceleration of Q4 productivity improvements and the pace of any recovery in net fees. Progress on either is likely to see further upward pressure on estimates. As it is, we are following our November upgrades with a further upgrade today to reflect the non-recurrence of certain costs in FY21. With a clearer picture now in place from the peer group; there is no doubt that SThree has significantly outperformed from a net fee perspective and profitability. SThree has come out of this crisis with their strategic commitment to STEM roles and flexible working firmly vindicated. Despite the clear water between SThree and its peers, we have yet to see a disconnect in share price performance. Despite recent strength, SThree still offers good value compared to the more volatile peer group. Cyclical recovery hopes are benefiting all the UK staffing plays, even if SThree is the only one that looks to be exiting 2020 on a substantive high.
27 Jan 2021
FY’20 final results
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FY’20 final results
SThree plc (STEM:LON) | 426 6.4 0.4% | Mkt Cap: 574.6m
- Published:
27 Jan 2021 -
Author:
Iain Daly -
Pages:
10
The Q4 trading update had already flagged a better than expected net fee and profitability performance and these results have put more meat on the bone. Beyond the resilience SThree has shown in what has been an extraordinary year; the key questions looking forward are going to revolve around the maintenance / acceleration of Q4 productivity improvements and the pace of any recovery in net fees. Progress on either is likely to see further upward pressure on estimates. As it is, we are following our November upgrades with a further upgrade today to reflect the non-recurrence of certain costs in FY21. With a clearer picture now in place from the peer group; there is no doubt that SThree has significantly outperformed from a net fee perspective and profitability. SThree has come out of this crisis with their strategic commitment to STEM roles and flexible working firmly vindicated. Despite the clear water between SThree and its peers, we have yet to see a disconnect in share price performance. Despite recent strength, SThree still offers good value compared to the more volatile peer group. Cyclical recovery hopes are benefiting all the UK staffing plays, even if SThree is the only one that looks to be exiting 2020 on a substantive high.