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View All NewsSThree gross profit rises 22% in Q2, names new CFO
SThree plc, the UK-based professional staffing provider, reported net fees, or gross profit, rose 22% year over year in its second quarter ended May 31. Gross profit rose 10% when comparing the first half of this year to the first half of last year. The company also announced its new CFO.
“We are delighted to announce that our teams have delivered a very strong performance in Q2, driving significant growth across the group on first half 2020,” Chief Executive Mark Dorman said. “Very encouragingly, given the Covid-19 impact in Q2 last year, net fees in Q2 2021 were 8% ahead of the equivalent period in 2019.”
Gross profit
| (£ millions) | H1 2021 | H1 2020 | % change constant currency | H1 2021 (US$ millions) |
| Contract | £121.9 | £113.5 | 8% | $172.9 |
| Permanent | £42.4 | £36.4 | 18% | $60.1 |
| Total | £164.3 | £149.9 | 10% | $233.0 |
SThree focuses on providing STEM skills. It noted gross profit in its contract staffing business rose 8% year over year in constant currency. It also noted its contractor order book rose by 33% year over year in the second quarter reflecting strong demand.
Second-quarter permanent placement gross profit rose 18% year over year in constant currency with growth of 57% in the US and growth of 13% in Germany, Austria and Switzerland.
Top five countries’ gross profit
| (£ millions) | H1 2021 | H1 2020 | % change constant currency | H1 2021 (US$ millions) |
| Germany | £54.0 | £46.0 | 15% | $76.6 |
| Netherlands | £25.6 | £23.2 | 8% | $36.3 |
| UK | £17.3 | £18.6 | -8% | $24.5 |
| US | £40.9 | £35.3 | 24% | $58.0 |
| Japan | £3.3 | £2.8 | 23% | $4.7 |
SThree recorded high demand in key sectors in the US. Its largest sector in the US, life sciences, saw second-quarter gross profit rise by 30% year over year in constant currency. The company cited robust demand in clinical operations, quality assurance and product development. Engineering gross profit in the US rose by 12%, driven by renewable energy-focused construction. Technology gross profit rose by 33% with increased demand in mobile applications, Adobe, Salesforce and software development.
For further coverage of SThree results, please read the European issue of the Staffing Industry Daily News.
Share price and market cap
Shares in SThree reached a new 52-week high in trading today when they reached £475.00 (US$669.81); the company had a market cap of £620.6 million (US$875.1 million).
Separately, SThree announced that Andrew Beach will join the company as CFO on July 5. Beach previously served as CFO of Hyve Group plc. Current CFO Alex Smith will step down but will remain with the company while effecting a handover of responsibilities; the departure had previously been announced.
