SThree plc, a London-based global recruitment firm focused on STEM roles, reported net fees, or gross profit, fell 4% in constant currency year over year in its fiscal year ended Nov. 30. The decline was in permanent placement gross profit, which fell 22%. SThree noted the decline in perm reflected market conditions and a strategic transition toward contract staffing in specific markets. Meanwhile, contract staffing, or temp, revenue rose 1% amid contract extensions, the company said.

“Following a record prior year, the group has delivered a consistently robust performance within a challenging macroeconomic environment,” Chief Executive Timo Lehne said in a press release. “This gives us confidence that our strategic focus, aligned to structural growth drivers of critical STEM skills and flexible talent, gives us a resilient and financially robust platform from which to deliver our ambitions.”

SThree also noted gross profit was down 3% excluding restructured businesses in Singapore, Hong Kong and Ireland.

In addition, the company reported average headcount for the year was down 2% over the year. Year-end headcount was down 15%, which was partly impacted by the restructure of the Singapore, Hong Kong and Ireland businesses.

“As we enter the start of the new financial year, we haven’t yet seen an easing of the macroeconomic environment, which continues to drive soft trading conditions,” Lehne said. “Our strategic focus, exposure to long-term megatrends and progress to date delivering operational enhancements provide us with a strong platform for sustained growth. We remain excited by the opportunities ahead.”

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Share price

Shares in SThree closed down 0.72% today in London to £420.00 (US$527.15); shares were 14.63% below their 52-week high.