SThree plc, a UK-based firm focused on providing professionals with STEM skills, reported net fees (gross profit) fell by 7% year over year in constant currency in its fiscal third quarter ended Aug. 31. Contract staffing gross profit was roughly flat, but permanent gross profit fell 31%.

The group cited a strong comparative period and ongoing global macroeconomic weakness.

Excluding Singapore, Hong Kong and Ireland, which the company restructured in 2022, gross profit was down 5% year over year in constant currency in the third quarter. That compares to a decline of 6% in the second quarter. The previously announced restructuring took place due to underperformance in the businesses. 

SThree also announced it is trading in line with market expectations for the full year.

“We continue to deliver a resilient performance, underpinned by the group’s strategic focus on contract,” Chief Executive Timo Lehne said. “While the wider environment remains uncertain, we are encouraged by our sequentially improving new placement performance and strong contract extensions, demonstrating our clients’ sustained demand for critical STEM skills.”

All growth rates announced below are in constant currency and year on year unless otherwise stated.

Within DACH, Germany, the largest country in the region, saw contract gross profit down 3% over the year, with overall gross profit down 6%.

In the Netherlands (including Spain) region, the group noted strong growth in contract gross profit, up 10%, partially offset by permanent, down 9%.

In the Rest of Europe region, contract gross profit grew 4% over the year. The UK, the largest country in the region, saw contract gross profit rise by 1%, with overall gross profit down 4%. Engineering gross profit was up 17% as demand increased for roles within project and construction management and mechanical engineering. However, this was offset by declines in both technology (down 5%) and life sciences (down 26%).

In the US gross profit fell 19% and contract gross profit was down 7%. Life sciences gross profit fell 18%, in line with the market conditions. This was partly offset by engineering, which was up 16% over the year.

Middle East and Asia saw gross profit decline 14% year over year. On a like-for-like basis (excluding the restructured businesses in Singapore and Hong Kong), gross profit was up 5% over the year. Japan’s gross profit was down 4%. The group noted a solid performance in UAE, with gross profit up 18%, driven by engineering.

Share price

Shares in SThree closed up 4.04% today in London to £373.50 (US$462.71); they were 14.9% above their 52-week low, according to FT.com.