SThree plc (STEM:LSE), a UK-based global staffing firm focused on STEM skills, reported revenue rose 22% on a constant currency basis to $1.64 billion in its fiscal year ended Nov. 30.

“The group’s strong performance in the year was against a market backdrop characterized by a return to a more normalized trading environment, followed by an increasingly uncertain and weakening macro-economic environment towards the end of the period,” Chief Executive Timo Lehne said.

Contract staffing revenue rose 24% on a reported basis to £1.54 billion (US$1.85 billion) while permanent placement revenue rose 8% on a reported basis to £99.1 million (US$118.8 million).

SThree reported strong 19% growth in net fees (gross profit) on a constant currency basis with demand for STEM and flexible talent among the drivers of growth. SThree also cited strong net fee growth in its largest countries (constant currency): Germany, up 14%; US, up 13%; and the Netherlands, up 34%.

Total group average headcount was up 12%, though headcount remains slightly below its pre-pandemic peak.

“As we enter the new financial year, trading continues to track in line with expectations, supported by a healthy contract orderbook,” Lehne said. “The macro landscape remains consistent with the softer conditions seen toward the end of the year. However, our global reach combined with a specialist niche focus in structural STEM disciplines is underpinned by a proven resilient business model and a robust balance sheet.”

In the US, research-led healthcare and digitalization were both significant drivers of top-line growth as was decarbonization, driving demand from utilities clients who are adapting their businesses toward clean energy, according to SThree. Life sciences saw an increase in project managers and quality assurance personnel enabling clients to cope with the production and approvals of medicines and devices. In addition, power infrastructure and renewable energy investments maintained strong momentum in 2022, aided by legislative tailwinds such as the Inflation Reduction Act, resulting in high demand for key verticals in engineering and project management. Also, SThree experienced demand from manufacturers continuing investments into modernizing facilities and developing new product lines.

Share price and market cap

Shares in SThree closed at £421.00 (US$521.43) on Monday; they were 14.95% below their 52-week high, according to FT.com. The company had a market cap of £558.0 million (US$718.4 million).