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View All NewsSThree plc revenue up 13% for year; reports beta launch of AI platform
SThree plc reported revenue rose 13% in constant currency for its fiscal year ended Nov. 30; the strongest revenue growth came from its operations in Continental Europe, where revenue was up 24.3% on a reported basis.
CEO Gary Elden previously announced he would be leaving the London-based professional staffing company, and he plans to depart prior to SThree’s annual meeting on April 24. The company also noted £6.4 million (US$8.2 million) in restricting costs as it moved support functions from its London headquarters to a new facility in Glasgow, Scotland.
Elden also reported the beta launch of its HireFirst, an artificial intelligence platform that aims to match candidates with companies. HireFirst was beta launched in October in both Paris and London. The company also made progress with its Shocaser video platform for candidates. SThree doesn’t anticipate material revenue from either platform this year, but Elden said the platforms will be able to generate strong returns over the medium term.
| (£ thousands) | FY 2018 | FY 2017 | % change | % change constant currency | FY 2018 (US$ thousands) |
| Revenue | £1,258,152 | £1,114,530 | 12.9% | 13% | £1,609,994 |
| Gross profit | £321,126 | £287,672 | 11.6% | 12% | £410,929 |
| Gross margin | 25.5% | 25.8% | |||
| Profit for the year | £39,542 | £33,066 | 19.6% | £50,600 |
US revenue rose 1.1% for the year while revenue in UK and Ireland slipped 0.6%.
Revenue by geography
| (£ thousands) | FY 2018 | FY 2017 | % change | FY 2018 (US$ thousands) |
| Continental Europe | £716,058 | £576,018 | 24.3% | $916,304 |
| UK and Ireland | £268,031 | £269,777 | -0.6% | $342,986 |
| USA | £215,099 | £212,737 | 1.1% | $275,251 |
| Asia Pacific and Middle East | £58,964 | £55,998 | 5.3% | $75,453 |
Full-year revenue rose 13.5% in temporary staffing while permanent placement revenue was up 5.8%.
Revenue by contract and permanent placement
| (£ thousands) | FY 2018 | FY 2017 | % change | FY 2018 (US$ thousands) |
| Contract | £1,169,141 | £1,030,359 | 13.5% | £1,496,091 |
| Permanent | £89,011 | £84,171 | 5.8% | £113,903 |
| SThree total | £1,258,152 | £1,114,530 | 12.9% | £1,609,994 |
Fastest revenue growth by segment was in SThree’s energy business where revenue rose 18.3%. it was followed by the information and communications technology business where revenue rose 15.6%.
Revenue by segment
| (£ thousands) | FY 2018 | FY 2017 | % change | FY 2018 (US$ thousands) |
| Information and Communication Technology | £580,732 | £502,299 | 15.6% | $743,134 |
| Life Sciences | £195,102 | £176,870 | 10.3% | $249,662 |
| Banking and Finance | £180,122 | £181,007 | -0.5% | $230,493 |
| Energy | £169,018 | £142,822 | 18.3% | $216,284 |
| Engineering | £111,608 | £97,469 | 14.5% | $142,819 |
| Other | £21,570 | £14,063 | 53.4% | $27,602 |
SThree plc ranks No. 29 on Staffing Industry Analyst’s list of largest global staffing firms. SThree of the UK and Strategic Staffing Solutions (S3), based in Detroit, are unrelated companies
Quote
“At the start of 2018, I stated that after two years of turbulent political markets and economic pressure we entered the year in good shape,” Elden said. “Looking forward to the year ahead, our post-year end trading is in line with expectations and we remain well positioned to benefit from the growth opportunities in our chosen STEM markets.”
Share price and market cap
Shares were up 1.76% to £277.30 in London as of 10:58 a.m. Eastern time; the company had a market cap of £356.5 million, according to FT.com.