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View All NewsSThree reports revenue up 14% as adjusted in first half of year
Revenue at professional staffing provider SThree plc rose 14% in the first six months of the year ended May 31 when adjusted for the effects of currency and exceptional restructuring costs. Revenue was up 12.5% without the adjustments.
The restructuring costs of £2.4 million (US$3.2 million) stemmed from its relocation of support functions in the company to Glasgow, Scotland, from London.
| (£ thousands) | H1 2018 | H1 2017 | % change | % change constant currency* | H1 2018 (US$ thousands) |
| Revenue | £585,940 | £520,961 | 12.5% | 14% | $777,712 |
| Gross profit | £148,395 | £134,350 | 10.5% | 11% | $196,963 |
| Gross margin | 25.3% | 25.8% | |||
| Profit for the period | £12,984 | £14,175 | -8.4% | $17,234 | |
| *In constant currency, and first-half 2018 revenue adjusted for £2.4 million of exceptional restructuring costs. | |||||
The UK-based staffing provider ranks among the largest global staffing firms, but the company reported its strongest growth in Continental Europe, where revenue rose 25.0%.
In the UK and Ireland, revenue rose 1.4%, and US revenue fell 1.8%.
Growth in the Netherlands was particularly strong, the company reported. In the US, SThree noted that the year got off to a slow start, recovering in the second quarter — although there were strong comparatives from the prior year. Permanent placement gross profit fell 18% on a constant currency basis in the first quarter in the US, but rose 6% in the second. Contract staffing gross profit in the US was up 10% on a constant currency basis in the first quarter and rose 21% in the second.
Revenue by geography
| (£ thousands) | H1 2018 | H1 2017 | % change | H1 2018 (US$ thousands) |
| Continental Europe | £328,804 | £262,990 | 25.0% | $436,418 |
| UK and Ireland | £131,721 | £129,896 | 1.4% | $174,832 |
| US | £98,443 | £100,237 | -1.8% | $130,662 |
| Asia Pacific and Middle East | £26,972 | £27,838 | -3.1% | $35,800 |
SThree reported that revenue in information and communication technology — its largest segment — rose 13.3%. ICT represents a majority of its businesses in the UK and Ireland and Continental Europe.
Revenue by segment
| (£ thousands) | H1 2018 | H1 2017 | % change | H1 2018 (US$ thousands) |
| Information and Communication Technology | £270,691 | £239,007 | 13.3% | $359,285 |
| Life Sciences | £90,748 | £82,245 | 10.3% | $120,449 |
| Banking and Finance | £87,597 | £85,238 | 2.8% | $116,267 |
| Energy | £75,976 | £63,429 | 19.8% | $100,842 |
| Engineering | £51,516 | £44,488 | 15.8% | $68,377 |
| Other | £9,412 | £6,554 | 43.6% | $12,492 |
| Total | £585,940 | £520,961 | 12.5% | $777,712 |
| Contract | £544,062 | £480,819 | 13.2% | $722,128 |
| Permanent | £41,878 | £40,142 | 4.3% | $55,584 |
| Total | £585,940 | £520,961 | 12.5% | $777,712 |
Quote
“Trading in the weeks since the period end has continued the positive trends, leaving the group well-positioned as we enter our seasonally more significant second half,” CEO Gary Elden said.
Share price and market cap
Shares in SThree were up 1.15% to £351.50 at close of the London Stock Exchange, according to Yahoo. The company had a market cap of £441.5 million