SThree plc, a UK-based staffing firm focused on providing STEM skills, cited a difficult macroeconomic environment but reported revenue rose 2.4% on a constant currency basis to £825.2 million (US$1.02 billion) in the six months ended May 31. Growth was led by temporary (contract) staffing, while permanent placement revenue declined. SThree also reported revenue growth across skills segments with the exception of life sciences. Overall US revenue fell.

“Our focus on STEM and flexible talent has delivered a resilient performance in the first half of the year against strong comparatives and macroeconomic headwinds,” SThree Chief Executive Timo Lehne said in a press release.

Contract staffing revenue fell 8% on a reported basis to £785.0 million (US$972.5 million). On the other hand, perm placement revenue fell 15% on a reported basis to £40.3 million (US$49.9 million).

Looking at results by geography, revenue rose across most areas served by SThree with the exceptions of the US — where revenue fell 2% in constant currency — and the company’s “Germany, Austria and Switzerland” segment, with revenue down 4%.

The Netherlands (including Spain) saw revenue rise 13% in constant currency, while Middle East and Asia revenue rose 10%. Engineering drove results in the Netherlands, while growth in technology staffing drove growth in Spain. SThree also cited demand for renewable energy engineering roles in Japan.

Both the US and the “Germany, Austria, Switzerland” geographies were affected by declines in life sciences revenue. SThree noted global life sciences sector has been impacted by reduced expenditure with the greatest impact on the company’s US business.

SThree’s global life sciences revenue fell 10% on a reported basis to £139.2 million (US$172.5 million). Still, the company saw increases in its global technology revenue and engineering revenue. Technology revenue rose 7% on a reported basis to £423.4 million (US$524.5 million), and engineering revenue rose 25% to £194.6 million (US$241.1 million).

SThree’s brands are Computer Futures, Progressive, Real Staffing Group and Huxley Associates.

Guidance

“Macro conditions continue to be varied as we enter the second half; however, contract extensions remain strong as our customers seek to retain scarce skills to ensure they do not jeopardize future growth prospects,” the company said in a statement.

It noted that new placement activity in June saw modest improvement and was ahead of the second-quarter average. However, it’s too early to know whether this is an improving trend.

SThree also reported it’s trading in line with market expectations for the full year.

Share price and market cap

Shares in SThree closed up 2.01% to £356.00 (US$457.04) today in London; they were 9.54% above their 52-week low, according to FT.com. The company had a market cap of £469.4 million (US$602.6 million).