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View All NewsSThree gross profit rises 8% in fiscal Q1, cites growth in Continental Europe
SThree plc, which ranks on SIA’s list of largest global staffing firms, reported gross profit rose 8% in constant currency during its fiscal first quarter ended Feb. 28. The company cited growth in Continental Europe drove the increase.
The London-based firm added that contract staffing remains the driving force behind the group’s gross profit growth, posting growth of 11%. This growth was driven by Continental Europe, up 19%, and the US, up 10%.
| (£ millions) | Q1 2018 | Q1 2017 | % change (in constant currency) | Q1 2018 (US$ millions) |
| Contract | £50.5 | £45.6 | 11% | $70.4 |
| Permanent | £19.8 | £19.5 | 2% | $27.6 |
| SThree total | £70.3 | £65.1 | 8% | $98.0 |
The growth rate in its US business reflected tough prior-year comparatives. SThree noted market opportunity in the US remains “very strong” and it expects to see “an improving performance” from this business.
Revenue by geography
| Q1 2018 | Q1 2017 | % change (in constant currency) | Q1 2018 (US$ millions) | |
| UK and Ireland | £12.7 | £13.0 | -3% | $17.7 |
| Continental Europe | £40.3 | £34.0 | 15% | $56.2 |
| US | £13.1 | £14.2 | 1% | $18.3 |
| Asia Pacific and Middle East | £4.2 | £3.9 | 15% | $5.9 |
Gross profit by industry
| Q1 2018 | Q1 2017 | % change (in constant currency) | Q1 2018 (US$ millions) | |
| Information and communications technology | £31.8 | £29.5 | 5% | $44.3 |
| Banking and finance | £9.5 | £9.8 | - | $13.2 |
| Energy | £6.1 | £5.1 | 35% | $8.5 |
| Engineering | £6.7 | £5.6 | 14% | $9.3 |
| Life sciences | £14.8 | £14.1 | 9% | $20.6 |
| Other | £1.4 | £1.0 | 32% | $2.0 |
Quote
“Looking ahead, we will continue to invest in our highest performing teams, consistent with our vision to be the number one STEM talent provider in the best STEM markets,” said Chief Executive Gary Elden. “Our focus on contract and the continued strength of our performance in Continental Europe and across key sectors leave us confident that there are good growth opportunities available for us this year.”
Share price and market cap
Shares in SThree closed down 0.86% to £347.00. The company had a market cap of £451.5 million.