SThree: Half Year Trading Update

SThree (STEM)
SThree: Half Year Trading Update

15-Jun-2020 / 07:00 GMT/BST
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15 June 2020

SThree plc

Half Year Trading Update

SThree plc ("SThree" or the "Group"), the only global pure-play specialist staffing business focused on roles in Science, Technology, Engineering and Mathematics ('STEM'), today issues a trading update(1) for the half year ended 31 May 2020.

Highlights                             

• Group net fees for H1 down 7% in the year, with Q2 down 12%, impacted by Covid-19
• Contract showing resilience with H1 net fees down 5% (Q2 down 11%), representing 76% of Group net fees (H1 2019: 74%)
• 88% of Group net fees generated from international(2) markets (H1 2019: 87%)
• Strong balance sheet, with net cash at 31 May 2020 increased to £31m (29 Feb 2020: £9m)

Mark Dorman, Chief Executive, commented:

"The first half results are a combination of a robust first quarter, with a number of key markets delivering strong growth, and a second quarter defined by a global health pandemic and the economic impacts of government responses to it.

"In what has been a difficult period for our teams, both personally and professionally, their dedication and spirit has enabled us to continue to deliver on our purpose to bring skilled people together to build the future.  We have seen clients reassess their talent mix and the support they need in managing that talent during the period, with particular demand for STEM skills as they all navigate the current environment. There is a focus on flexible working, reskilling and the need to hire from as diverse a pool of candidates as possible to fill critical talent gaps. By navigating this complex and fast-changing environment we have ultimately delivered a resilient performance.

"Whilst lockdowns are currently being eased to differing extents globally, we still see heightened uncertainty continuing for some time. As such our guidance remains withdrawn. However, we have demonstrated that our business is agile and able to adapt. We are committed to ensuring that SThree is well positioned over the long term and are confident we can continue to exploit the accelerating secular trends of STEM and flexible working across global markets and deliver our long term ambitions."