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View All NewsSThree gross profit rises 5% in Q3; biggest increase in US, up 20%
SThree plc, a UK-based based staffing provider with global operations, reported gross profit rose 5% on a constant currency basis in the third quarter of its fiscal year ended Aug. 31.
The company’s US operations posted the biggest increase in gross profit, up 20% in constant currency in the third quarter. However, gross profit in the firm’s UK and Ireland operations fell 10%.
“We are pleased with our sustained momentum in the period, with gross profit showing a sequential increase over Q2,” Chief Executive Gary Elden said. “A robust performance in Continental Europe and further strong growth in the USA were particular highlights and our contract business is continuing to drive growth across the group.”
SThree reported contract staffing gross profit rose 9% in constant currency in the third quarter while permanent placement gross profit fell 6% in constant currency. The company reported much of the growth in contract gross profit during the third quarter came from Continental Europe and the US; however, it was offset by a decline in the UK and Ireland. The group stated that it continued to prioritize growth in contract sales headcount, with an average increase in the quarter of 8% year over year.
Looking at industry sectors, the sharpest increase in gross profit took place in the energy sector, where gross profit rose 35% on a constant currency basis. In SThree’s largest sector served, information and communication technology, gross profit edged up 1% on a constant currency basis.
| Gross profit | Q3 2017 | Q3 2016 | % change in constant currency | Q3 2017 (in US$) | ||
| Q3 2017 | Q2 2017 | Q1 2017 | ||||
| Contract | £53.1 | £45.4 | 9% | 9% | 7% | $120.95 |
| Permanent | £20.6 | £20.6 | -6% | -6% | -14% | $51.49 |
| Total | £73.7 | £66.0 | 5% | 4% | - | $172.43 |
| Geography | ||||||
| UK and Ireland | £14.5 | £15.8 | -10% | 14% | -19% | $34.67 |
| Continental Europe | £37.9 | £32.9 | 6% | 7% | 7% | $88.59 |
| US | £17.3 | £13.5 | 20% | 20% | 12% | $38.13 |
| Asia Pacific and Middle East | £4.0 | £3.8 | 1% | 5% | -14% | $11.04 |
| Total | £73.7 | £66.0 | 5% | 4% | - | $172.43 |
| Sector | ||||||
| Information and Communication Technology | £31.6 | £29.3 | 1% | 1% | 2% | $76.65 |
| Banking and Finance | £11.3 | £10.5 | 1% | -1% | -8% | $26.32 |
| Energy | £7.1 | £4.8 | 35% | 23% | -8% | $14.51 |
| Engineering | £6.9 | £6.2 | 5% | 3% | -1% | $15.15 |
| Life Sciences | £15.6 | £14.3 | 3% | 7% | 4% | $36.98 |
| Other | £1.2 | £0.9 | 24% | 13% | 4% | $2.82 |
| Total | £73.7 | £66.0 | 5% | 4% | - | $172.43 |
| Contract/Perm Split | ||||||
| Contract/Perm Split | 72% | 69% | ||||
| Permanent | 28% | 31% | ||||
| Geographical Split | ||||||
| UK and Ireland | 20% | 24% | ||||
| Continental Europe | 52% | 50% | ||||
| US | 23% | 20% | ||||
| Asia Pacific and Middle East | 5% | 6% | ||||
| Sector split | ||||||
| Information and Communication Technology | 43% | 44% | ||||
| Banking and Finance | 15% | 16% | ||||
| Energy | 10% | 7% | ||||
| Engineering | 9% | 10% | ||||
| Life Sciences | 21% | 22% | ||||
| Other | 2% | 1% | ||||
Shares in SThree plc closed up 1.9% to £337.04. The company had a market cap of £443.6 million.